- Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen. Welcome to the South Plains Financial Incorporated Third Quarter 2022 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 conference like to now would turn over the Mr. I Treasurer Chief Plains Financial Crockett, of Officer Steven and South Financial. Please go ahead, sir.

Steven Crockett

conclusion Thank hours We of will our appreciate and Cory quarter November good this our Chairman morning, call in Curtis our of until Executive today And within of call. X, website third Officer Chief here conference XXXX this you, our on earnings President. Griffith, be me are Newsom, the available and your call two operator. participation With everyone. XXXX. A replay

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

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

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

Curtis Griffith

I review discuss Steve well Cory to five conclude our QX of a we detail growth results, our will detailed and the call. clear strong. briefly I in you, more highlights On more key will the are third then our credit today's bank. XXXX are will which remains believe grow morning. of ongoing start, from will the our strategy that away which of quarter points today's and call, a Thank Steve, good validation profile you with hope there of review take as results. To our portfolio, loan review

our call, spoke to and quarter's at say we quarter First, our this point last to results business on I'm inflection proud being that that validate an view.

and annualized driven markets XX% delivered we loan major in third community strength both of Second, Dallas, the El by Houston our our in Paso. quarter, markets and growth

earnings growth. uncertain loan Third, is bank the and building believe to to this improve fund liquidity we strong to Fourth, further the an positioned well economy. are we growth and for third our of loan portfolio we continued quality power continue through the credit of quarter the have

Lastly, value remained our we with been quarter. program to shares active third believe approximately continue shares in and our that have trading having the XXX,XXX below repurchase back bought intrinsic share

our over include These as recoveries, quarter. increases fair of certain well as third items MSR making comparisons items the the value share of the highlight our included have common delivered are of million three diluted of important for net million losses second the ago quarter $X.XX improving compares per in which to or It's the common earnings results $XX.X XXXX $X.XX year we at provisions share slide in share for loan large common the to negative of bank. and income quarter diluted net quarters earnings on and last that obscuring per This or per four $XX.X diluted million portfolio. our results Looking in $X.XX XXXX. third power of difficult, our $XX.X presentation, income or

$X.XX per quarter's these approximately tax. call. quarter from more in benefited per detail which items had this on of $X.XX tax, net Looking third at share of second of results our we share last net results of benefited Likewise, items our from XXXX discussed quarter these

per second for quarter. third these adversely credit approximately the As of by growth half offset the loan quarter classified. quarter increased of XX% our of quarter when paydowns a the of quality was recorded provision from which normalizing loss loss for recovery new of hotel organic the portfolio during paydowns $XXX,XXX XXXX required share over in combined earnings The of loan items. $XXX,XXX, negative our with loan XXXX, reserves by portfolio, a of of a the result, experienced energy third those which our in improving for $XX.X We -- triggered million largely segment was in the

and an reserved for allowance XX conditions Looking pandemic that well is loss loan higher remain forward, due markets, than concerns our for points rising the economic be our environment may pre losses for Nevertheless, increase the to future in basis uncertain outlook, continue given levels we periods. persistent necessary regarding provisions economic levels. to and interest forecasted high rate ratio and in States loan United inflation

moderate interest remained expect through the third strong second economic Loan to Federal raise as quarter rate. annualized XX% from the growth quarter loan to of Reserve grew of their demand as continues While portfolio we the we XXXX. target our benchmark

as our our in driven was markets, both, metropolitan as by major markets. growth loan well Our community gains

the in our to and through bank quarter of achieved end. third portfolio that core the readily is This year more revenues in in our earnings revenues expected declines the continue power is to now grow has business, banking have mortgage than to visible offset XX% of XXXX. Importantly, mortgage the we as the of our significant declined scale where bank lending

future the to as deposit ratio XXXX fund loan the XX.X% to September at we end XX, Additionally, growth to was have to at loan second as XXXX. liquidity XX.X% of continue compared quarter our of

work deposits represents yielding significant growth in Increased loans. we potential grown expectations. our and redeploy our historically have to XX.X% mid higher future comfortable our we to achieved full upper This of ratio have continue been of notably, have low the range, significant lending over high growth above deposit as year is time. our liquidity as loans fund guidance loan Most a we cost earnings at our accomplishments provides results we to for am running our year Overall, team. single share commercial to which delivered We loan yielding to mid I capacity XX% the our bank the which for to loan ahead loan very across as markets date, proud XXXX. digit growth into

fully intrinsic earnings value. As our believe of the trading through improvement this improved the has have we been have below we year, the price share bank not reflected as power our shares

team. repurchases repurchased and To result, Along share cautiously quarter, having those continues per be repurchase to repurchases our As shareholders XX, bought Texas stock announced lines, through and stock XX, shares XXX,XXX accelerated under in our compared as authorized record the a growth second our of XXth healthy low unemployment. for will October November priority dividend dividend conclude, this on remains economy capital paid stream we our on $X.XX our shareholders Directors consecutive have This Board a optimistic to our the week. we to experience XXXX economic XXX,XXX be a share as earlier the our remain third XXX,XXX management quarterly program. back XXXX. for of Returning date, shares as dividend to approximately Year we in of quarter. shares a to steady

sacrificing in are to expect not underwrite The moderate, conservative not loan portfolio, including we credit strong more assumptions, is growth with for growth. signs remain and believe concerning in quality an we to and lie nor our are ahead. While seeing we loan our to credit excited We that the position our we that opportunities in of markets. portfolio advantageous continue quality

over to Now the let me turn call Cory.

Cory Newsom

everyone. good and Curtis, you, Thank morning,

slide touched by increased outlined third $XXX.X second XXXX during investment quarter or as for of Curtis on, million annualized, XXXX held compared five. the quarter to loans As XX% on the of

commercial Our segment, mortgage sector real loan in the is Overall, loan a despite which not market, strong remained residential our the demand in paydowns consumer auto. hotel for estate demand in noted was growth and us. primarily

we we to improving items, second Curtis loan X.XX%. XXXX and million When loan second our on, quarter power quarter of quarter it and believe which to in X.XX% for loan The in was third quarter. to also prepayment of second is costs, obscured $X.X higher started of That rise the bank. that been in XXXX. trends concerted loan which A for yield reflects third these interest in and those to the our in have have was third yields of is account to XXXX Our price we in order the earnings for our our three quarter to compares the through properly rate yield new experienced. quarter the loans adjust the X.XX%, quarters see the results the important our recoveries to adjust large rise to proactively benefits adjusting funding the a growing it touched model for yield last environment, important combined penalties with over said, effort

our We continues increases are remain a rate Reserve also policies. their position, stay of maintaining the market, interest competitive working the as while to Federal which hard and focus ahead aggressive tightening

smaller a in outlined in Dallas, slide community discussed Huston markets we our in as call, primarily our a we our and quarter bank on six. markets As major bank El XXXX retail commercial Paso are second of and

accomplish markets on our low Our way. have we focus this, long liquidity strategy oriented cultural added commercial consisting to is relationships the customer To of to redeploy a down into lenders major from our share developing our who markets. and excess values cost our term metropolitan right deposits experienced community

to our loan combined growth share scale in gain factor have the and bankers to expansion continue community the growing metropolitan Our accelerating through markets a that that the deliver. with is key we our year, delivered

our seven, metropolitan compared of third growth loan markets, our we've date, loans million by we bank's on annualized grown our total Year growth of XXXX, million which the quarters of grew contribute to outlined year. XXXX. XX.X% strongly the to three representing by to in As quarter XX.X% the XX% $XXX the in second in quarter the as $XX slide metro to first loan through portfolio markets

on presence markets to and with in scale sustain single high metro us optimism loan over growing to Our digit time. ability mid the our growth provide

the space have opportunities add and present to markets our ability as we themselves. in Additionally, bankers growth metro

occurs. beginning more we economy rapid Texas as deals offer the remains and to transitions builders on, still for energy in loans growth to borrowers in money constrained continue interest and levels the economic problems buyers healthy. loan a more underwriting prices have inventory as asking are underwriting Likewise, to moderate more the normal seen Permian given very That growth. we going. potential down touched said, we environment, Curtis Basin to rate to focus incentive if we avoid put market an to lower downturn is and into we rise As on disciplined higher proactively If on are need builds new keep more to ensure to economy equity the rates

credit We downturn strong auto remain continually and to position. stress liquidity with $X position enter improving capital million have date. testing $XXX to to are Skipping the increased portfolio pleased quarter year quality, portfolio our quality and experienced XXXX we XXXX. asset in the that ahead of Overall, pleased by remain next we loan third advantageous our loan want nine, the to with an in compared our second and million quarter indirect slide of as the to

in rising rate given sector, declined the this of the While growth there environment. increases level interest market was

score This auto maintained of for economic cycles. across better. of credit the we credit XX% varying underwriting indirect with disciplined have the a approach a or XXX loan profile to positions portfolio resilience strong portfolio originated Importantly,

of mortgage as Turning a XXXX of decreased as with result originations loan on rates seasonality. of XXXX compared market in to $XXX XX.X% to Mortgage third the business interest the XX. million quarter slide second quarter combined normal our rising to

last quarter, our been we mortgage with business banking As discussed deliberate. has strategy

volumes growing aggressively decline, both metro for on commercial platform across our markets. have this business been lending We as profitability community and focusing managing while

our in income would mortgage As this Curtis banking interest seen and to be where results portfolio our inflection the business. reached decline second generate the clearly That we growing the we growth in can return believe despite has quarter an our loan commented, in bank quarter. improving XXXX point of

or business and incremental negative. may no mortgage now in it the level sell. a business cross remain is Our way longer material long at impact in as have possible is the of on business results, positive drives a We as which our

insurance million increase million we generated This income in quarter and quarter non-interest XX, million slide was the in XXXX $X.X settlements to of seasonal third business. of from to Turning primarily $XX.X insurance our in the of of million second activities in legal $XX.X increase result the compared $X.X of XXXX.

XXXX, to To have add growth to selectively team and XX% place of large to commercial growth focused we where and conclude, of our in represent XXXX. deliberate second These quarter as infrastructure experienced our third services and scale. has loan strategy as the other for non-interest markets. will income the continue as opportunities as compared the was markets in lenders For revenues been well organic bank in add can our build presence metro XX% quarter of quickly commercial in major further to our we we these markets

to like would While has continue remained the over now rate. continues third for Reserve see healthy experienced but to business healthy remain to go have optimistic as cash the Federal balances cash year loan as turn raise demand our We new quarter cautious, and of customers call we moderation remain a the Steve. consumer robust, interest looking I we target levels into fourth both to deals. to benchmark the and

Steven Crockett

Cory. you, during recoveries as quarter loan Net million the the skewed to interest for $XX.X quarter prepayment the the million quarter second the comparison were by and XX. that of slide large XXXX penalties income second second XXXX. for recognized Starting is of This to $XX.X $X.X quarter. million Thank was on compared third of

$X.X one-time outstanding million with a interest $XXX interest the interest a rising of increased average our these portfolio in of environment. in of net benefits, received loans earning other by Excluding market interest as income result combined primarily on million, rate as increase and securities the assets income result higher

year benefit well net income our interest positioned continue interest we in and the our we as rates fourth believe into for are and quarter to grow to the portfolio benefit that anticipated ahead. we the from forward, through rise loan Looking potentially

quarter on Our compared net tax as interest was second to equivalent basis of in in the X.XX% a XXXX. of calculated X.X% quarter XXXX the margin third

comparison was recognized that which in quarter of The improvement quarter, X.X% compared environment. is margin million growth loan we with to penalties in by the recoveries strong the the XXXX. as interest of to market interest our the driven quarter rising rate second large third net in a Excluding net our $X.X interest and second our prepayment better X.XX% was organic margin loan combined the the

XX was increase XX deposits of in cost average basis points an points, Our basis QX. from

markets. see rates the During we increased in quarter, our as the to deposit made decision started for we third competition interest proactively deposits raise to our

interest to in a being strategic We relationships maintain rate environment. rates interest our order are in deposit how raise rising in we

interest to Looking expect to Reserve target forward, we continues to our funding Federal benchmark costs continue gradually rise as their the rate. raise

Turning to total second increased compared as the to million $XX.X of quarter deposits in XXXX. the third billion slide quarter $X.XX XX, to

we growth. we organic from strong -- to As which are customer benefit relationships which are driving continue our

compared the base continue increased of as to XX.X% we as to quarter deposits positive of XXXX Additionally, the deposits our XXXX. shift bearing a deposit non-interest mix in to experience in XX.X% in quarter total second of third

as XXXX, our loan compared believe continue to Turning as XXXX. loans total XX, portfolio to June our X.XX% at that was remains to XX, at X.XX% fifteen, September we allowance slide to appropriately reserved,

Curtis the As in to loan quarter a negative quarter the of provision we for for recorded loss loan third in XXXX. touched losses compared of no provision on, $XXX,XXX second

continue in we believe well for higher than Importantly, levels. to in with XX our from forecasted quarter in loan is portfolio, economic credit portfolio quarter metrics rising Overall, economic XXXX Nevertheless, conditions declined of of non-performing loss XX the basis due we basis loan remain assets improvements to of to and improving revenue XX, points that was variable uncertain our million concerns pre-pandemic offset ahead demand the for related we in reduced environment of second to the XX million worsen expenses a addition basis our compared activities, due allowance third our levels $XX.X inflation to XXXX. to XXXX The quarter United provisions and total first XX insurance third high for given quarter the outlook hotel Skipping ratio the in mortgage result to regarding in in slightly continue points as losses points the to for an points basis assets future $XX.X particular the reserved slide necessary experience XXXX the in of and accordance expense loan loan in with in which be second periods. rate originations, in as additional may insurance non-interest expense persistent $XXX,XX States commission as by increase partially an in a Corey higher mortgage XXXX. from quarter was of of primarily decline discussed. the

third expense reached continue expense the current retain as the year inflationary us the quarter we non-interest Looking XXXX the said, legal That third of of that than to personnel, which may expect we to experience better largely headwind given fourth to in environment, our be were the quarter the be behind settlements quarter slightly legal expect to to XXXX, is XXXX. a pressure given wage of in elevated ahead.

remarks. concluding interest of income to book fair was value after net decreased will tax, decline dividends value tangible to Moving rates well increase turn slide sale tangible by X.XX% of the call of remain common for with now the share during $XX.X per Tangible capitalized hedges, related from end decline by the securities The at decrease decline of equity the third the of The result assets a in to mainly the available quarter of was partially market $X.XX X.XX% of I a our we XXXX, $XX.X fair securities of to and paid Curtis XXXX. quarter end $XX.XXduring value the at our XXXX. second fair the value the million. a of period. third of driven offset net of in for million in XX, quarter by ahead back

Curtis Griffith

our To quarter validate reached is for our conclude, our positioned that view Steve. additional an results and third you, the bank inflection point growth. business has now Thank

Our markets as improved our Dallas, our Houston loan continue we our growth strategy lending to driving quickly is share to increase and and expand platform our scale community El markets. Paso, in those bankers metro in build while

liquidity to improve put power to bank. further higher Importantly, have loans, serve of in we to yielding the earnings the work will which

returns will will of believe improve, As value we our we we see Plains. increase South grow, which the

would has of we economic credit remain outlook uncertain, healthy to their commitment to them. work hold. like to Texas While this questions. your economy we for loan for position of advantageous communities open thank remains future our our time and portfolio for once line an our again and the None employees the whatever success disciplined Thank profile for you may hard improve customers underwriting. to our is possible quarter. please and maintained remains today. and approach in I Operator, again the The our any have the without continued

Operator

question Thank KBW. comes you. session. Our Instructions] question-and-answer Brady we Please time, conducting At from be first your proceed a question. Gailey this with will [Operator with

Brady Gailey

morning, Thank you. Good guys.

Curtis Griffith

Brady. morning, Good

Steven Crockett

morning, Good Brady.

Brady Gailey

It's hear a expenses everybody good bit heard is but I know quarter, the that the down wage fourth linked comment seeing. to quarter I which inflation, little will on in be

think how about level all could So the XXXX? you that see do of into expense creep we

Curtis Griffith

that I’ll numbers the he's running been let us? talk Steve about when for

Steven Crockett

Yes.

QX, showing, that inflation legal to were showing definitely than as that to slightly better we were other in to. some So, the able think QX, including offset there with got, that due far we saves also where flat be lower to as that that XXXX. reduced we get spoke cost we've expect the QX personnel We expense we that rate still into that we'd run of to what in Brady, as than we'll be see we're we

Brady Gailey

do share pace capital, the continuing right. the but repurchased you this about I know was mean, are have How potentially buybacks? All repurchases. headed X% recession. of at think then you to it to you see I company. of kind year a And about into of still we date great excess

how buybacks XXXX? into about So do you think

Curtis Griffith

is that have good at next our Well, meeting. our to on Board some discussion going

that recessionary program, bit. be level, in the feel the price likely as we repurchase potential But the I of our out a we'll slowing have well stay that issues we slightly I stock. reauthorize still fears think as frankly market improved where like undervalued but and little also might will speed We the repurchase would there long given think stock as

Brady Gailey

year? the market All Deposit and Lubbock right. it should up when quarter, should we much And me, up then what fairly I to finally on those so rates. comes be a deposit competitive continue next can quarter expect rates know deposit to how next for rates moved in go into

Cory Newsom

is Cory. This

we've mean, look that in know the at right you was we We got talked quarter, we've So locally. going to a mean, of with of products we're increase we're active that I if some and it I to stuff the kind some the out on. really that's seeing -- kind is I movement early mean, see offering which about I its that. out markets line. We're of that no mean, of we little kind in of thing, market which of increase some there stuff haven't on, And some, question but thought bit you everything some the a feel there's it's not been of seeing got. crazy we that good was going about that rates getting past where expectations other and not the results makes last competitors additional hand, in good in we're that going

think So to out I yes, of some get it's don't see but going we'll hand. increase,

Curtis Griffith

pricing more out year done, some as but loan pressure prosperity to there's Everything well. that it. here talk our other we've we that side, from M&A here the hold we're know, -- that in about think deposit we we or also seeing, recent you're being deposit thing has aware may Obviously, beta But lessen markets on can still the of don't pressure locally, better think talked it. tend XX% I that activity about we

forward. those As move transactions

number deposit for probably in of thing the fighting a limited the reduction good over pool of So competitors, us. is

Brady Gailey

Yes, that makes sense. guys. All you, right. Thank

Curtis Griffith

Brady. Thanks,

Operator

Milsaps with Brad question. with question next your Stanley. is Piper proceed from Our Please

Bradley Milsaps

guys. good Hey, morning,

Curtis Griffith

Brad. Hi,

Steven Crockett

Brad. morning, God

Bradley Milsaps

just did the less, hear on want How questions deposits? or I you addressed correctly say think beta but put out think XX% already, discussion. total that guys bearing deposit to would number of a about XX% be just You beta or you you that you deposits that that few there? [indiscernible] interest follow-up my do

Curtis Griffith

interest on bearing. That's

Bradley Milsaps

Okay.

Curtis Griffith

somewhat and last others. but of those And our we numbers, including seasonal DDA various do for some have, reasons, funds like public are

thing move that metro the are up and numbers So but still down DDA also will that. us, big those. locally, relationships reaching that's and for go here also only just we're customer accounts doing out trying we DDA and in we're one believers in are in markets bring to our what but with We add as with in treasury management not

it I time, up be the over So But down think surprised to continue of see grow. piece see DDA quarter you'll a bit little to and quarter. if average you don't the bounce

Bradley Milsaps

on it on somewhere with basis look lenders. of like like was your around looked you're a loan flip It Sure. CRE XX%. new beta side, on the does your a And core putting lot

that of right the number the think you that in continues to you'll forward? yield your type of going as know, see Fed Just kind lift to increase, is curious, loan

Cory Newsom

Yes. comfortable what step. set stress with here -- we're there's a this together, the on bringing we challenges to no look yields standpoint, it underwriting, in cautiously here, it. We're some. we're pipeline strong, that I we're that probably seeing is we're to testing that all on the of still on. we're That's I but we're good loans making question, beauty getting mean, where some way answer moderating mean, our at pipeline from sure the is We're biggest that. wanting and when the it's of bring own putting

good step getting we're So the yield we're on putting that on.

Bradley Milsaps

On XX% but good you're -- one more makes yours digit market be of some that? single maybe is couple. growth it's is sustainable? guys, there number. year a for is year do XX% I a big ag. focused tracking quarter that know pulled high is rate the back typical more of in driving know revenue, Great. And and kind something over insurance Or third Anything you Or or on a big there kind kind then out just else just I a you finally you over insurance think X%, that pretty on of for would XXXX? growth which this always to

Steven Crockett

start in as revenue came had some I'll in or that then come I'll do know a the of fourth in to that the in I that and in just There was well. might quarter, Curtis third timing. a the from Well, have quarter of Cory jumped little than little bit. let last with overall they typically up increases they we're we've but have number revenues don't that mean, the year that anything in projecting have now. better I that I that did upcoming pushed I show to -- that's think know year, what seen bit

Cory Newsom

job is Part that a we states. of across good of do a diversification really of number

to underwriting year risk, things not never out year. comes the growth that at we're how got to it. We look out. take year turns like the turned of that a as we expanding overall don't But of the at of guys, on -- and of agents It kind the pleased rates kind lot have, back the you're But look profit at sharing We're next still look we're position, a increase how any back So what you're with we year of kind look going like from with you looks loss to. depends it's how that. footprint if at good. far you as number if of how going and -- back stuff

Curtis Griffith

that, to federal crop sharing -- report is insurance And for. income we a business are virtually program. that's in nice was tied been ride we that on companies the therefore entirely those that gains good as they but very areas, related XXXX insurance and is Cory remember those And some as companies underwriting and the not profit definitely underwriting what please in year good coming country, do but of the many a all we time. this mentioning, to It we nice losses. check got get for a XXXX at had while was good across hasn't some

the for probably same forecast least right those XXXX So in. whenever we'll our do own profit now, checks be sharing is slightly down at come period,

Steven Crockett

on banks not side, the profit the on sharing overall revenue. That’s

Curtis Griffith

revenue base side. overall on Not

continue We that. grow to

Bradley Milsaps

Right.

question, this type Okay. your you quarter I'm sure million litigation didn't either might any or non pulled of be And of maybe encompasses quarter. right curious, tell kind final but Curtis, what $X.XX I anything the mind? this then you what of of kind up I more consider me saw in out mentioned should $X.X MSR proceeds, of positively miss housekeeping. making else negatively mean, that of the kind that? was items. rate Can you run just there I

Curtis Griffith

Steve confirmed gains but it, this indicated he quarter. in MSR and $XXX,XXX for

So was it there. number, big a some not in but

that's in yes, there. So

Steven Crockett

Yes.

So Brad, in the that the legal the expense some did legal net to settlement, related on quarter increased that. had off we of we

So just and up of the number. that with coming number bit $X.XX lowered kind a little that

Curtis Griffith

on level loss And on one did QX of but not we well. have QX in as a loss did in recoveries, we have couple we recoveries, some the that did

Bradley Milsaps

it. Got

of in So you guidance mentioned expenses for Brady's to kind question, the those, which come legal your in are fourth as the quarter, fourth? in lower drives to going out expenses of response some those

Curtis Griffith

sure. Yes,

Bradley Milsaps

it. great. Thanks Okay, for Appreciate the color.

Curtis Griffith

Brad. Thank you,

Cory Newsom

Thank you.

Operator

closing over I'd the end question to like now the We Curtis turn to for have comments. call of session. answer Griffith reached back and the

Curtis Griffith

your again and of time. for you, you Thank today call quarter. the thanks am results proud our to operator, on I all of this

some from deposits probably just lenders market are our with We we as on great pick our And share. the disruptions for adding M&A strategy to community discussed, really are as here opportunities grow our organically to bank well. and delivering increase and markets and up our

bank. customer to Our our are strong lenders metro in their portfolios, bringing relationships the grow markets continuing to on

impact does or at negatively and grow of optimistic really meaningfully Our results, positively The earning business mortgage so profitable, forward. it down now level continue that still won't we is to about the power our but core future. going a are

do on Our markets remain raise our of activity strong. be moderate remain to very I healthy, which will our continues continues the loan portfolio, We'll rates. Federal the to Reserve profile but credit as think focused

for time in everybody So thanks and again today your Plains interest for South your Financial. for

Operator

This concludes conference. today's

time lines at disconnect your and for may thank your You you this participation. we

South Plains Financial (SPFI) 21 Oct 222022 Q3 Earnings call transcript