SPFI - Earnings call transcript Q1 2021 | South Plains Financial, Inc.

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Operator

Good afternoon, ladies and gentlemen, and welcome to the South Plains Financial Inc.

First Quarter 2021 Earnings Conference Call.

During today's presentation, all parties will be in a listen-only mode.

Following the presentation, the conference will be opened for questions with instructions to follow at that time.

As a reminder, this conference call is being recorded. to call like to now would turn over the Mr. I South Chief Financial Crockett, Plains Officer Steven of Financial. ahead, go Please sir.

Steven Crockett

earnings me Thank Officer. Chief you, our our in XXXX President; participation We Chairman appreciate call. operator, and Officer; Bates, good our afternoon and Chief and first Cory Curtis Brent today Credit are here everyone. Executive your conference Griffith, With Newsom, quarter Bank's City

be reminder, a a As through XX, XXXX. this will replay May available call of

is available presentation our deck a discussion section complement Additionally, the to of on today's website. slide Investors

slide Before may Page see Slide as such do Any All we differ are any to risks, could update to forward-looking that the are release Safe our of a Safe today's duty begin, as by this not herein statements let that and made law. X me remind beginning earnings press made of presented Please call our statement. results deck and of required contain subject materially on to we during Harbor everyone statement that from today's statements variety uncertainties date call factors are subject actual that presentation. and those Harbor undertake X other forward-looking except anticipated on statements comments of cause forward-looking results. to future only

call, the be can our I will reconciliation these measures point, non-GAAP of Page to non-GAAP Additionally, call measures, the in A performance. comparable release. over Curtis. which on we GAAP earnings certain today's may discuss this XX useful measures during our we turn believe At evaluating are found most of to

Curtis Griffith

will initiatives financial first with will discuss review XXXX sustainability provide capital which to Cory of will good more organic call, growth. an February our Steve update and a and results. today's first our with allocation quarter we released designed XXXX Steve conclude And on accelerate conclude strategy I you, our comments briefly our review Thank our report, On on the highlights results, detailed XXXX. corporate inaugural quarter in afternoon. of

We call will then the open questions. for your

X, of $X.XX results to XXXX share, of $X.XX Turning to $X.X income and reported which the in income the was Slide $XX.X first share million, we quarter of or pre-provision on common in quarter million, of income first first to million diluted that fourth reported or first XXXX. which for we net million million, Pre-tax, quarter net our per in quarter. XXXX per diluted compares common the compares XXXX of the last $XX.X $XX.X year's $XX.X quarter

recorded to have for first we quality that quarter emphasize second the year. the of confident Our provision consecutive the for is It minimal quarter our that the and and year remain we was of first and in loss in reserves the to the XXXX important portfolio last loan ago compares $X.X quarter. loan credit million over

improving. That instilled at the we're recognize the stable needed US The have and believe credit provided portfolio standards, the economy is and economy stance the conservative government's culture loan has said, certain We economic underwriting accelerating stimulus individuals that given a and year. crisis. recent We spent of to the package at and as to keeping reserves sectors, hardest watching hotel which are to see most our through evolves we the stress the are many current much notably positioned sector. areas our the continued businesses and conservative COVID-XX many bank stimulus whether is in hit strict levels of adhere activity maintaining to we that our support how

and the we end While loan economic in our the continue along quarter time will reserves position accordingly. portfolio, risks will we some have the their to the monitor started at that assess as adjust see banks of releasing each with quarter, of more we environment to at this

we prior As discussed have on calls.

first trends $XX.X are in are the exposure beginning we're starts December the XXXX, of to XXXX. loan related in be has that many improvement we vaccines see been of loan are encouraged touch X.X% of portfolio hotel to a loan COVID-XX the as activity of hospitality we to economy to loans accelerate. end slow the of or and moment. or attributed Approximately XX, at rollout position as million, the pandemic, declined million, to seen that in some XX, area more our on recover. portfolio cautiously restrictions. of of XXXX are active Our and with The in that COVID-XX our is that and detail This Though pace Cory lifted improve. the our continue modified portfolio we Texas can will current as primary in of to seeing which the XX% appropriate COVID-XX Overall, $XX.X continue has And to reserve quarter the the to economy loan believe of compared our modifications active continue our which will improvement our our the of optimistic is as Governor of portfolio. X.X% March

we Looking remain am focused bank. have achieved. continues growing the on to team the I of very proud our the success of forward, value that

XX, $XX.XX of per tangible of XX, per to as compared Over XX.X% March as grown book year share to the last as $XX.XX March XXXX. share we have value XXXX

have steady strategy We and to a utilized shareholders. growth dividends to thoughtful our support stream while of a disciplined providing allocation this capital

proud that ahead our I to exceeded creative goals save all continue our including or to year of disciplined or as Texas for met acquisition the will like integration we We acquisitions expense look our in we WTSB. West Bank, report of target. be am State

on has an community M&A opportunity we process in we'll and very prepared earned the integration, expects back our next for investment throughout valuation acquisition. focused and which in Additionally, team the that we on understand our WTSB approach were the acquisition, said, what with mind. That any

per our week. shareholders May past be directors of record will and This May on board dividend of dividend our strategy, XXXX. approved capital share a to this in allocation will consecutive increase our quarterly on our XX of to part paid XXXX XX% As $X.XX X be ninth quarterly

quarter During XXXX, XX,XXX program, this repurchase repurchased we we share of our continuing under time. the which million $XX approximately at stock of are shares common first

we opportunities remain Importantly, as shareholder for disciplined weigh value improving redeployment bank. we the the will and grow capital to

Another initiatives. year in our broad ahead expand spectrum the across area of our of focus a effort to is sustainability engagement

aid years, organizations, we bank. to work to of providing very part service from Over for local volunteering local employees the the support our their nonprofit been for as and financial ranging communities have active our

our we sustainability have succeeded ultimately at said, That I'm XXXX. long commitment how of over of culture, and the in and we our I dedication do know Our which to launched our can communities our report, corporate February and is proud first more core history. we

through Our reduce goal increasing our to XXXX. communities and our with to a this will recover quarter local to ahead communities. support is diverse and We report outlines employee footprint bank enable to through positive commitment that our to markets and that a journey impact ongoing our opportunities our make of us directors, and many a workforce carbon our board Texas local continued first understand excited are engagement. our of the To in conclude

estate remain to accelerate, As and started will real to rise. prices the business strong continue has the volumes pace of

events low full Additionally, occupancy our restaurants have have to returned as began very to new COVID-XX and back. case numbers come remained

bank and of have to optimistic lobbies As outlook are economy for opened a customers all on result, and bank. and we our branches the our the the

Now call over turn let me the to Cory.

Cory Newsom

XXXX. were Loans Slide from held X. billion, Starting $XX $X.XX increase million agricultural and afternoon net with portfolio from largely Thank fourth of XXXX our million for loan driven by first increase $XXX of everyone. payments million you, the offset first at The the fourth by of was on quarter loan good quarter $XX and the from in of growth the Curtis $XX is operating XXXX end XXXX increase quarter loans. seasonal the million of which of quarter partially of investment organic

PPP which increase a $XX first of XXXX, the resulted loans $X of PPP we million. loans quarter Additionally, of funded new in during net in million

by driven customers continues recover from improved the credit as demand Our our the is from loan for growth to pandemic. COVID-XX being economy

across the well residential began as economic which auto of While the in indirect our still quarter recovery, construction channel, markets, in our we're improvement fourth of early we continued XXXX. in many were as seeing strengthened

work to focus and bank. continues organic add markets our be we experienced we our Our of bankers selective maintain culture and we'll as all our on Worth, Dallas the to hiring Paso. relationship in accelerating across focus as strict Fort El the on through We're being loan grow Houston a credit year, growth with

build demand and As continue loan to our industries, our grow. pipelines begins to across

XXXX. PPP to re accelerate through returning growth a mid-single to rate loan excluding growth digit expect low digit in We single loans, before XXXX, to

cautiously average improve on pre XX% now portfolio COVID-XX optimistic, of At by portfolio can modifications continues loans over be portfolios, room to declined loan of active of are our been of our on the with quarter-over-quarter X.X% COVID-XX XX% those and as majority have the X. where pandemic, total we on, our transport to touched the heart per Curtis hotel Slide our pandemic As revenue seen are improving pandemic available but loan to hotel seeing, related down approaching the in highs.

have term. at has properties relatively none to airport many flow been That reserves segment. of general industry's the the decision they improvement we operators see tepid our of host will hospitality that expressed have cash optimism cautious made recovery be continue substantial near Importantly, X.X% or the and our hotels and and of our over to said

work We they with economic as recovery. will continue to navigate our borrowers closely the

our excluding fourth PPP at exposure of is level. quarter direct with Our was energy portfolio, line $XX or loans, loan quarter's million, X.X% which end the in

nearly our Palo exposure XXX% Duro and energy while located is Basins, Permian XX% support is in reminder, a of As our the exposure services. of

Additionally, exposure outside industry. strong is energy service our we energy direct where of sector of alone one guarantor have almost the half support

Basin. our especially feel with have to energy very along economic continue rise, with as activity in continued Permian prices comfortable oil to We the exposure,

now entered where brand. also for pandemic the the that we upgrades it's we While the the used through COVID-XX strategic Basin our WTSB, areas opportunities our perform we while created Citibank facility of across accelerate navigated several created true to initiatives rebranded believe time branches their have have that closed to a with in we Permian One team been to our and well, challenges look has have vein. feel improve acquisition which

reopened to that we're our XXXX, quarter customer attraction on a has we've markedly branches expand as the already our seeing first of As return reproved.

the has ago, in our banking positioned customers in has We're that began the to currently focus been we expansion of across signatures our offerings our investment of we platform where pandemic. several years digital contactless remote digital transition bank. the COVID-XX area which banking to our process the fortunate increasing digital of are bank Another and throughout

scale as experienced our area technology business lower view continue opportunity technology our will We banking and customer an mortgage utilization ratio. our we strong digital efficiency to continue satisfaction, of growth in without where our One our have expenses, a and improve to robust see which we use positively commensurate headcount. is enhance impact in increase where platforms to have effectively processes, to

our As seen strong. on X, continue Slide to mortgage volumes be

quarter mortgage in in quarter our results we've several mortgage the the many and million million as over $XXX quarter $XXX market loan mortgage increase recruited This delivered to XXXX. Our share of of of again banking continue in led of compared $XX last fourth the to began originations this the they compared quarter teams, evident drive first XXXX of whom was the increasing production. where to the first fourth rise million XXXX years, fourth in originations as and to our in This is is mortgage rights, mortgage to The servicing portfolio rates revenues to XXXX. in value revenues $XX improve the fair quarter in of quarter first of in the of mortgage quarter. due the compares banking largely million

fee Slide banking income seen X. on mortgage strength can Our our in outlined be as

the first income, $XX.X fourth of we million XXXX. XXXX, of the of million generated compared quarter non-interest quarter $XX.X in to For

compared for have to we the While mitigate remains accelerating. compression strong to the XX% of scale. differentiator effectively Plain economic as the we positioned slow activity we use income banking is in given believe we ago we market in have year revenues to income continue real to in expect non-interesting total the To as first the conclude, revenues started believe mortgage to margin technology refinance South through we're year volume our quarter the as moderate a XXXX as our Overall, year fee XX% quarter. represented of that

Our credit loan and loan of our quality pipelines the are is portfolio building strong.

to were and turn over optimistic the the We bank the Steve. while to the maintaining our continue I portfolio, environment will protect on which cautiously be to conservative on now deteriorate. future if to shareholders call like reserves our would

Steven Crockett

rates $XX.X first compared $XX.X of income Starting million of was XXXX due first cost The of Thank XX, million Slide since third fourth decrease was decrease for basis XXXX points a as and in for for partially quarter the the interest net points offset XXXX basis expense issued that quarter of in subordinated and the $XX.X to XXXX. million of notes quarter in $XX decline interest quarter the of bearing of million you, loan for on XX of the the the Cory. we to a XXXX by of first quarter deposits. interest XX

unrecognized At income which related end During XXXX, in included the million of to income forgiven the quarter loans quarter. SBA of an are by loans PPP fee to accelerated majority we million to on first $X.X be the over fees, income, interest recognize SBA recognized the the be as adjustment during deferred first and PPP quarters. expected as there the PPP was which next several forgiven quarter, of $X.X continued

margin interest in quarter quarter XXXX. the net to fourth to of X.XX% Our compared in XXXX, decreased X.XX% as the of first

non we've to as pressure continued points Our declined portfolio. in XX rate loan basis some our rates loan PPP see

approximately is margin continued basis liquidity. declined the from to excess growth that deposits our Additionally, points X our in added

first basis in of cost to basis the XXXX. average declined quarter points points Our X deposits of XX

points As of and XX compared basis points quarter the declined to first quarter XX the of in XXXX basis XXXX. from in fourth

quarter, we this billion rates In rates seen be be deposits see quarter fourth ended total We latest in or of first $X.XX going the the XXXX non-interest to We XX. quarter and expect of cycle. continue to floor $X.XX deposits XXXX first of to XX.X% increased stimulus the an We've recent loan will to compared PPP the deposits million monitor with round XXXX, continued as deposits. million, considering $XXX influx Slide package of especially the to total current billion first on nearing of of of as bearing our the funding. our government can the and forward quarter in $XXX

in our compared X as Turning declined to the in basis quarter to total first the XX, XXXX basis to to of quarter Slide assets XX ratio XX points of fourth non-performing points assets XXXX. points basis

was total quarter is a XX, compensation X As on, of $XX.X believe touched health help [ph] portfolio reserved was March against an our Slide quarter guard excluding from PPP we X.XX% XXXX, incentive uncertain remained our at insurance points our Curtis outlook reserves as the a believe for ALLL in quarter ahead are non-interest to XXXX loans, loan XXXX. and of XX of to basis million well in expense higher fourth that We This which that loans, to our to to primarily fourth the $XX.X decline the was the we've lender million appropriate. XXXX. increase compared Skipping plan. change first to costs, of due built

the Slide XX, capitalized tangible to X.XX% we the fourth I quarter for of will of a first quarter first as was tangible XXXX we and concluding to of the steady have XXXX turn and focus end in expenses XX.X% XXXX call which the XXXX of quarter to the quarter. well running to XXXX. our first core compared and of efficiency as X.XX% back equity, at Curtis to XX.X% at improve remain continue the our in in work in to of quarter ahead remarks. assets now ago first remain X.XX% compared XX.X% ratio, fourth of the Giving the the end common of relatively with our year Importantly, of been team quarter

Curtis Griffith

for future through work thank have tireless challenging commitment foundation their strong this Steve. hard to I the bank. you, we quarter all not of the success that to would and have first as which of without positions your The achieved throughout the environment. our employees efforts Thank possible been like XXXX would our for and

over I'm I and the for unexpected, year, credit that the positioned career shareholders believe advantage hold, again, opportunities to the and hope my of cautious recovery business. decade tailwind any well the Operator, of almost to balance the our we with that take time are and provisions [ph] which comforted take to I I in for future have am many encountered real in you, front excited the open to line against look banking. five we also Thank the our will often to providing guards questions. We of for bank have a taken with approach we your please As optimism and see the us. economic filled that our today.

Operator

Piper is Sandler. from first Milsaps go Brad question Instructions] Please from The [Operator ahead.

Brad Milsaps

it afternoon. and the quarter. loan you nice Maybe a touch the that growth guys pressure good balance had you on mentioned, some just Hey, Hey, seeing. I on wanted you know, Steve, looks you think to loan like are sheet yield.

of then coming are during kind the doesn't bonds books, just curious, So you look new about that managing many have really loans sort liquidity excess how you you're kind quarter. of thinking of like on where the the bought and

kind going just you've second growth loan half that thinking got forward, the you as curious and coming PPP excess of about managing hopefully liquidity in how year? the of think the loan that So forgiveness, then about you're

Steven Crockett

a saw know, having bit term, but than businesses We yields it's bit auto it our overnight in some that rates, those so we did We than some had seeing some But little there. and stuff. mentioned are event. is some and shorter demand. alternative, of we're little better growth first again, lower And we've Sure, much we quarter. obviously you good good have a commercial off the indirect loan got the liquidity amortize in rate lower see We of yes. pressure. do was had as the a But

for with quarter invest, this as you extend like to point. But fair the the in continue we sure, to continue to far look of end opportunities. at was don't with again, did the we duration as to out will liquidity. too getting change down we overall toward the value rates good for the down. We fair we far securities in was the in value want of change investment But keep go know, the would As portfolio invest, flooded in

that all looking And so make to all to keep want opportunities. for don't time invest at we'll one good we that but decision just

Curtis Griffith

Steve everybody a going be liquidities the over the purchase of expecting this the what end our still as all But too echoing little What and still some we going of bit Bates seeing bit. feds of of much been the keeping want move to the we liquidity a seeing. I'll deposits what get bit long. kind quite speak from long forward little try during curve up, I don't figure us Curtis, frankly, are the that Brent long determine of And system injection too about let extended out bit. But with surprised, think kind headed I just an We're really of to there think, want into lines degree. to it's a up is I to growth this primarily, said, still period. to Steve we're in on little cautious, tied getting that. to little a be liquidity. We where began to are a bit that challenge to securities have we a we a Brad, too of early period said, backed little off as to out a And the don't

never into want seen. you there we've bit. of I how little but address know, one turns don't do ever a know funding much you that that to right the And Our final is pipeline of best out now Brent

Brent Bates

encouraged since its right Yes, a pipeline by we really really here. had, have really I've now. best been we've I'm strong

that seeing far of selective demand size occupied And an good owner of X% of a although to been CRE, being it quarter-over-quarter, while. during saw traction know, saw some and in which As in we contributed where, ours bit and the side, commercial also CNI, the close a and probability strong area still demand the about growth occupied the little and for category, you residential a as real it's estate, in quarter seeing we're of the kind the there. owner we're focus we in margins just in that's good

Cory Newsom

the they we some well, out lot little been So on Brad kind one than stuff are on a of loan to the we'd not those what up we a middle demand how to going. today. on mean, COVID of trying of keep aggressive figure last Cory. keep love thing pushback see rates fairly got ran rates, the we're, of We've its bit of as back I to going But getting of it. And him seeing higher that. this the year, and up the side, pleased with we're whole creating

Brad Milsaps

great. guys to into negative up lot loan around year you something happened know, That's what reserve, what have maybe kind certainly saying grow you kind Brent as to I would like for a of thinking guys or being maybe you of you about into, next? provision, on credit you the how based is can maybe And follow and appreciate take you're you reserves aggressive know, the conservative through the guess, releasing around move have of would pipeline you a quality, been provisioning just more this one in quarter. I with, your peers

Curtis Griffith

getting everything international or That's chains. it's still that our just to everyday I know into keep on pandemic, need out is quite at realistically, problems the how means. be anecdotally, there having sell, bit is not adjustment any to other of Curtis, think things And where like manufacturing have very end going here as cautiously in very little make looking reason QX, ramp And going we're businesses that of they quarter, we I see would that. we obviously working don't significant going But looking just I have their need is, probably if calculation. us in continue a many by issues positive before we back we don't really any it. to far good. now, out We And it that's And trimming grow it move about goes where the want forward. I the overall first quickly. us optimistic supply as at as we where this a customers. one we seeing And that maybe going affect Brad, think any of how say, to back. to But to know in the that we're pause. be qualitative But can trends And kind a yet catastrophic gives of to the don't items move do release answer to of best QX. right just recovery with going be hard and very, that's we're still the we're direction, the economy. But some things where everything's we're some are didn't going we adjustment start there it either to they

Brad Milsaps

will I the appreciate I back it queue. all. you. in great. That's Thank

Steven Crockett

our that, make seeing with supply just I economy. what Curtis seeing many We're portfolio chain not whole think would as one within comment throughout I as there's is a saying, we're as issues. own the along was

But of clarity bit So waiting pleased with along. for got. we're just come what a we're to we've

Operator

Gailey from ahead. of KBW. next The question is Brady go Please

Brady Gailey

the ask more reserve. I thank wanted Hey, one on guys. afternoon, you. to Good

plan? Cecil be the the XXXX that's yet of some reason Just you remind do maybe is And Cecil expect compliant January to number, bank, complied first our when not if right. for that's guys us a you correct, are

Cory Newsom

That is correct.

adopted not that's Cecil we have to. We when have

the process We and we're it, have here COVID's right just to gone ready do [ph]. through before

the very far down And road is. our date that's when so the that's we're required but when --

Brady Gailey

mortgage. I about next to ask Then right. All wanted

right even had even a very up you backed an the that I was think little if quarter. bit out than still there, you MSR strong, guys in of mortgage stronger fourth

like point. you heard moderate know, as think just mortgage about XXXX color then mortgage could on and moderate more your degree wondering fees comments you could you how more could you provide at was You the some moderating normalized the a earlier if which little market, a mortgage ultimately look to But what I think in mortgage to? I

Cory Newsom

those of guess, the what quarter team taking one. the percentage between off I is we I saw purchase this seeing quarters. tell I'll units difference the that whole, Well, second that probably between a two a quarters things we're and you the of we're statement, And first between tag on really where a one difference will as

we had first that know, headed moving we've first That's substantial able direction, focused purchase been what the bit on. they And swing April, bringing keep business been, quarter on that be quarter, been been a everything we've purchase teams that's what our to seeing, the business be mortgage the we've focused in is the the on we're to seeing business we've we doing You to during right as little move the forward. what where more had more refi pretty we than were in to in to side. we're even

margin [ph]? that anticipate slow XXXX. servicing going to think mortgage we a pretty already decent And seeing down are but [Indiscernible] compression We still that's don't year that's happening. for we

Curtis Griffith

to year, to we we had teams, moderating, more I it does, mean, we've still projected than what back No, about a got as year. look to deck, XXXX add Yes. on XXXX in a QX I is going this XXXX. added hard and as if you XXXX. chart mean, see the we've mean, talking But there saying andXXXX we've just do more I got of to know would but is what And in into back well be producers slide I good really Cory it

level where would those you at So that be levels that they assume above we were know, should time.

with like changes. really volatility, market So, but as we of increase just we year the of far saw in was first those value as but an to a the off this don't write seen one downs mortgage we've last all necessarily due servicing think be rights, that the got a the was, the on more quarter that and refinances I lot may we've all

Cory Newsom

the starts As to see as I that's challenge with there. mean, moderate biggest we and industry to If lifetime, are that's then think does, lion's XX our a it struggling what mortgage see will some I as share within pullback, the across inventory. we it XX volume day out well, commissions. mean, the to But balance as expenses the everybody is because our expenses of the year. moderate we of

they're really a and to so daily that. we how we result sure that make of continues outcomes do, We've as in foothold tied to on basis a process what we've tried some seen a And larger directly technology take it. good to

Brady Gailey

and update today, up All we are stand feeling kind on like helpful. all in on spoke Plains? And know upbeat people it view you M&A stock I maybe are right, bank the an seems update clearly seems then ago, South it like you that's better days about when how more we just were where markets, better, prices are M&A your maybe Texas of And XX for things in economy.

Cory Newsom

doing arena. to there in with that serious we in any an purchase. to anything we point, probably right problematic, is Not going beginning simple make stock at still some can has stock generates do that with that is buy be pricing Well, to with in be going some good in damped staying do if in attitude the to the now, than cash go deal the trading, and touch and all component see we're we where could during purchase activity, given ourselves. a out any be where transaction. But And now a are to discussions there this our be they really and I that bank, see market small our nevertheless, for something another that It's it's don't have until but hard are a potential And and out to definitely synergies is the to and contact right some XXXX. we very generate looking could play better targets make us hopefully would think for likes along. a deal enough for ride still reason comes growth, that fit We'd little right we Obviously, large smaller the us little love so in a don't have that's a recently. to sometime we meaningful something sellers.

Curtis Griffith

is that hiring very look COVID for on, [ph] we're it's pleased and stay what as very, animated we're their focused was what I organic we we possible. like making continue careful And sure organic Brent of on seasoned growth that seeing, the robust about I The and to as as about growth, deal direction, the thing center focused very pandemic. coming that's lenders, our out it. we're mean, we're as along and just with front to continue And our where process. But it's in we talking very seeing mean quality at we're we're with keep that pipeline.

Brady Gailey

missed was advance? and I wondering prepayment million sorry if any that was that material FHLB spread FHLB Alright, income? a to $XX a but will repaid if costly this, then, the penalty, of be I'm without that add

Cory Newsom

No, it was rate. actually variable not. It was a

just our based liquidity we But low it current needed. cost. was So wasn't on position, obviously, that it anything

Brady Gailey

it. sense. makes the Got That Thanks guys. for color,

Operator

would the back question-and-answer comments. like call for I Curtis to session, turn the concludes This closing Griffith Mr. to

Curtis Griffith

on in listening and participating today for you, those Thank operator. for as Thank well. call the everybody

with a a this. underwriting pleased going is strong, dire off I our into and of great fearful were of the have some We we year But that leading of we pandemic have we opportunities Plains think And of ahead that all us. the us. That's did think of think all strong credit now result as for of. we were I many that's We're the we paying here have things. ago, to And consequences continues quality I kind financial, South some think are improve. we seeing very not group

Cory we continue to lenders place indicated, and some. in great As have add some

growth this are be place is certainly market to right So a be I is organic Texas to strong, able optimistic we on achieve going now. what to very great year the we're our think

they're when work a investment We have customers. generally opportunity, and allowed The technology. to saves, in satisfied our our every us can we new call spread adding have technology very on of continue to see And that. has with of an the across pandemic percentage quick digital much I think repayment the platform to opportunity we that greater

services. efficiency So we'll for of improve utilizing banking continue kinds delivery those of to by channels

in it now are and a we're see so where a again, rates. significant that hasn't probably will unless all, business, end and a good anything far pleased we of we to about all slowdown. going we gradual good 'XX. really the think But in have spike long So been feel Mortgage have drastic right we're the

see the single in begin slow. interest purchase several to we're our is substantial refi positioned here we're back out in longer because Texas, levels us certainly the to allow for increase portfolio will to reasonably do in rates. above homes, should in see going least we've an seeing at And last on our think refi's we've if as particularly I the margin family activity net even had months. probably side, to to deal given that way our down, with widen estimation, slow where And the

outlook us we any So all, great part ahead. a in operator. in participate our investors see welcome broad our in And to look you and to thank very for you, stock. of Thank and many you still years forward believing of and all being

Operator

Thank you. conference. This concludes today's

Thank at lines you your this disconnect for time. may You your participation.

South Plains Financial (SPFI) 28 Apr 212021 Q1 Earnings call transcript