Earnings call transcript Q4 2022

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Operator

Good afternoon, ladies and gentlemen, and welcome to the South Plains Financial Inc. Fourth 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 call like to now would turn over the Mr. I Treasurer Chief Plains Financial Crockett, of Officer Steve and South Financial. Please go ahead, sir.

Steve Crockett

conclusion Thank hours We of will our appreciate and Cory quarter February good this our Chairman afternoon call in Curtis our of until Executive today and within of call. Xnd, website fourth Officer; Chief here conference XXXX the 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 X 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 afternoon 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 can slide reconciliation found useful the these may the our to we also presentation. evaluating non-GAAP call, today’s non-GAAP measures A deck on release which and in comparable believe during certain of GAAP be most Slide earnings in Additionally, of measures, we our performance. discuss are measures

turn to the I’ll Curtis. point, over this At call

Curtis Griffith

the quarter call, organic I am full as review for our our navigated well while more last believe and remains Steve, economic On as our has as Thank our ahead. fourth we of the uncertain, our our improvement successfully environment XXXX to a the Steve credit start the review you, conclude driven commercial success Cory and afternoon. an detailed initiatives contributed highlights income. our discuss rate To growth for XXXX. year the challenging as the results. proud has to interest loan our results, year then of which outlook our review profile we year well will future. to will of of I the economic portfolio and our will expansion strategic QX success as and lending over net of today's loan briefly Plains continued Central South more and been have execution in outlook our very the we acceleration for platform, detail in loan a good growth positioned in with run

year, through net as our the combat aggressively revenues interest banking As decline mortgage improved offset raised to it the Reserve to benchmark interest began the their our inflation. rate expected income in Federal

in than with Looking peers. continue are believe forward, deliver well to positioned line we or to better our returns we

call. that and points take you key I results backdrop, away five that Given hope from are our today's there will

of First, strength our both in we fourth Paso. delivered loan seasonally our community markets growth as metropolitan X.X% well slower quarter driven our major annualized in markets El by Houston as and Dallas,

represents successfully at annualized to continued growth our new year loan XX% loan million, our as of XX.X% to their major portfolios. end experienced $XXX portfolio our markets metropolitan now Second, total grow which lenders

banking expenses we fourth our positioned increased pressure bank. are portfolio as believe and quarter the Third, to diligently remains declined stable mortgage well economic outlook. we and has profitability we across the for quality have the uncertain credit have our wage through the of Fourth, our revenues drive managed

to our capital remain returning we focused Lastly, on shareholders.

of common shares During December the XXXX of XXXX. were stock we outstanding as XX, of that company's repurchased X.X%

We XXXX. XXXX, also compared representing in XX% a in increase cash to as $X.XX distributed per quarterly dividends share

results $X.XX to net $X.XX the This per quarter Slide of common XXXX, the of common compares quarter. or our on share, $XX.X of income income or per in diluted share $XX.X Turning delivered per or and to diluted XXXX. more year fourth ago quarter X diluted fourth our common detail third of million, in share, million, of the earnings $X.XX in for million, we $XX.X presentation, net

results As we and of net discussed expense, our increased loss quarter's settlements, legal net for tax. share benefited from last per XXXX call, third loan of $X.XX legal a on earnings quarter of provision negative

earnings quarter we fourth typical decline more our seasonal there in result, prior a per years. share like experienced As experienced have

quarter. as recorded $XXX,XXX provision loan provision fourth of the compared of provision to the in provision year XXXX quarter no of for was a mainly XXXX of negative a in the in ago and in third fourth losses We fourth loan to quarter The growth $XXX,XXX our quarter. the due

environment believe reserved than that our for economic an is higher levels. well for ratio points given loss basis we we forward, pre-pandemic XX are uncertain Looking loan our allowance

economy economy but outlook a given the recession avoiding in a the XXXX mild strong continued seeing been have experiencing. recession to unemployment case and we with slowdown national base for Our that in-migration is experience low the Texas

future losses provisions in for result, be As loan periods. may a necessary

through interest to Reserve annualized X.X% remains target we as benchmark slow from the quarter economic continues rate, While loan of demand slower seasonally as in Federal growth Texas to portfolio raise fourth the third strong our grew XXXX. loan their quarter our we expect

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

$XXX.X to and high exceeded digit loan growth our This For income we strong experienced income mortgage growth. XXXX. loan which to loan that mid single XXXX, contributed interest XX.X% the help XX.X% net to through million decline banking of growth billion, XX.X% $X.XX the to XXXX, year to our expected compared to offset in grew full we as portfolio which

is to as in per a XXXX which As we grow to were diluted share modestly compared result, $X.XX able XXXX, share $X.XX achievement. an to per in earnings quite

price as this of taken XXXX team believe fully in intrinsic our trade That has not value. proud as delivered I our we've we accomplishments below improvement results Overall, continued expectations. lending our our across grown have to reflected very share above share shares markets and our said, am our

As the buy result, XXX,XXX the utilized on quarter. share to fourth during remaining shares capacity back authorization our we repurchase a

the year XXXX, shares, For X.X% December of our full we repurchased XXXX. at XXX,XXX outstanding representing shares approximately XX,

analyzing share of Our Board our buybacks currently merits repurchase is of Directors evaluating and the another prior program.

is need our with share also important in that our understand benefits programs. liquidity balance shares of we the to We our and liquidity repurchase

on time created over our no will in the expense also maintain shareholders. our This XXXX. company, plan the our will its longer XX, our distributing intended shares was the XXXX terminate as the improve benefit disclosed adopted We purpose. of month, believe to employee plan. reduce plan to served resolutions Board and Directors Additionally, earlier was ownership this be required plan employees, stock The participants, our stock which to may the this and plan's and liquidity will December

XXXX of to as $X.XX shareholders of Returning quarterly a quarterly our our shareholders and per priority capital quarterly XXth record week. stream dividend repurchases be dividends Directors for Board those on be a our dividend our share share steady XX, XX, This announced for will management of last authorized remains through on January lines, XXXX. Along February to paid consecutive our team.

as per a For XX% to quarterly we cash to dividends share compared $X.XX representing the full increase year XXXX, XXXX. distributed

not can Texas remain and that do we economy. credit in but mild vigilant growth and remain avoid will To recession, quality the sacrifice That national recession conclude, optimistic expect we growth. the a moderate cautiously we economy will for deliver a in said, XXXX

quality credit We conservative in have our assumptions been the underwriting remain the of more confident portfolio. and

also can with balance opportunities portfolios. forward, that lead Looking sheets believe challenging economic sound strong more and we loan environments for to those

look further in subdued contact could resurgence expand XXXX. the M&A through potential XXXX, a While to bank as with remain to we in we be believe we expect remain sellers there and

the turn to call over Now, let Cory. me

Cory Newsom

afternoon, everyone. Thank you, and Curtis, good

As for long by investment outlined of is increased the the held third during on of fourth Slide $XX.X quarter X.X% compared XXXX quarter XXXX Curtis or on, to X. annualized million touched

loan estate, us. a the for demand loan in principle slower segment, for which demand with real fourth combined sector Our hotel consumer bank seasonally the being not despite a primarily strong quarter remains quarter auto. payments commercial residential a and growth Overall mortgage, is remained in

yield fourth environment. for quarter the was third compares XXXX. which X.XX%, X.XX% efforts of in fourth yields to our loan a the in rate quarter a proactively XXXX in loan to our reflects market quarter price account of interest The Our loans to rise in new higher

Reserve Our quarter the continued their in the as policy. and rate Fed aggressive interest quantitative did tightening increases funding costs accelerate fourth

costs a growth As deposit XXXX. our will for and managing discuss team our focus we in funding is

of and in Dallas, primarily prior outlined As we calls, we on retail smaller major metropolitan and our X. have markets bank are Paso on our El commercial in Slide a markets as bank a Houston discussed community

markets to been major metro of right culture our customer values the experienced redeploy relationships lower focus commercial liquidity our cost Our our added who To done excess developing deposits and community-oriented share consisting into has have accomplish we who long-term strategy on and this, lenders markets. from way.

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

metro portfolio to by X, of As markets XX.X% markets, XX.X% of by year the quarter annualized banks the $XXX have XXXX. to in loan our XXXX, grew fourth grown in outlined loan major we which we’ve representing of loans strongly contributed XXXX. million quarter compared for XX.X% total the our million Slide as growth metropolitan on our $XX.X in the growth third full to Year-to-date,

a impact As recession but economy a Curtis digests experience XXXX our touched higher interest market of mild avoiding with on, economy during we seeing the national to rates. as recession the expect Texas a slowdown

environment in for for solid the continued Texas to housing. in given fortunate and We’re demand migration favorable strong operate businesses,

residential our stabilize rates current believe inventory we commercial interest Currently loan growth market digit healthy, outlook properties begin XXXX. levels, though demand and to low-single constraint. this supports moderating real for for estate If remains with at

portfolio tight cautious will credit loan We remain control keeping maintaining while expenses. of a the profile our of our focus with on

add and opportunities present major themselves. as Importantly, ability the have to markets we in our space bankers growth metropolitan

as market the growth. and transition to a higher we conservative new discipline levels continues on asking loans rate are more interest environment, to focus we As underwriting more economy down money proactively on for to

downturn we if continue occurs. economic in energy we the potential Permian avoid ensure lower problems an to Basin Likewise, underwriting to prices

remain continually loan and have we quality We experienced. portfolio that testing are stress the improvement pleased with credit our

position, position remain begin pleased Overall, our well quality XXXX. we an entering are in economies Texas believe and capital us both national in pick we to asset the and back up XXXX advantageous and serve strong which will with as

Skipping ahead X. Slide to

million the third to auto compared XXXX. XXXX million by portfolio Our as $XX in indirect quarter to loan the $XXX increased quarter of of fourth

XX% a economic While the we of credit loan are underwriting in a sector, a XXX profile across positions there this This is approach a discipline modest of for cycles. with resilience the credit originated score or growth indirect maintaining varying better. auto strong to portfolio portfolio

comprised than X% experience area believe occur less recreational challenges of this a portfolio recession. more is of where the severe vehicles, we Additionally, economy to were could an

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

for we As declined. aggressively managing business have quarter, profitability last been as discussed volumes we this

our and portfolio believe for have bank inflection growing across improving both income focusing metro lending an position our While markets, platform we our will on interest growth. reached and loan generate community where growing the point we that commercial

mortgage now results no a positive Our impact a or which level our material business on have negative. likely longer will is at

will incremental and drives through is long we it cross-selling. business in the as as business forward, remain Looking profitable mortgage

of XXXX. in income million Turning revenues. mortgage income to a from the seasonal Slide XX. quarter $XX.X insurance and quarter banking of to This million of million decrease primarily fourth activities third due $X XXXX $X.X the decline $XX.X of non-interest decline of was in compared in We’ve generated million to in the

comparison. non-interest income Additionally, legal $X.X from the skews which third benefited settlements, quarter million in

XXXX. quarter of the of to XXXX, as For non-interest XX% revenue the compared was third in quarter the XX% bank’s of income fourth

well in we a on with services. ahead, experienced continue as XXXX, the add opportunity other year strategic the have loan commercial lenders to selectively for significant several to major markets Looking including as priorities first, growth given our focus

professionals. treasury Second, enhance a expand our adding gathering with wealth deposit on and work management capabilities focus and to

service continue over in Third, growth loan as the Basin state income. our of drive deposit the and that pursue customer made proud given technology well we fee as investments Permian to the Fourth, opportunities years. are the to we of and have our

and as environment. cloud XXXX, expenses largely In bank’s industry-leading strive our profitability migration we tools. tightly on also the manage as cybersecurity in technology maintain the enhancing having our to current to inflationary And we lastly, will we to complete the focus while continue

results which I’m strong a the this of business, very our successfully in year income bank as banking our proud we conclude, executed has for and strategy, loan offset To delivered our interest continued mortgage past growth growth the which growth. decline organic have positions net

turn I to would like Steve. the to call now over

Steve Crockett

Cory. you, to the XX, Slide quarter million on of $XX.X increase $XX.X quarter compared income fourth for Thank Starting million as interest XXXX for net the was primarily result of a was of million on of in with other rate XXXX. interest The combined assets an earning the our loans continued in received as rising portfolio additional average a environment. interest $XX.X outstanding interest income higher third result

in from benefited loan purchase $XXX,XXX also recovery We QX. in a

we our interest our are the XXXX. quarter rise anticipated positioned we as Looking income the portfolio from loan forward, rates benefit first and we through of benefit that continue in grow to for to believe net interest

interest margin rising increase corresponding which X.XX% in of net equivalent rate in to tax basis to funding the loan Our the our the outpaced XXXX. fourth in interest due calculated in X.XX% as in growth of interest XXXX the was our on combined environment, increases a driven compared margin This our third cost. improvement was net organic quarter with by loan yields quarter

XX of the cost XX XXXX, deposits basis XXXX. quarter was in third of basis quarter points average the fourth an Our from increase points of in

to we increase response quarter, raise through aggressive our more on competitive which discussed further keep the seen started decision interest deposits quarter’s to increase and we quarter has have call, relationships. a deposits third the to fourth As proactively we rates the made competition our deposit maintain last necessitated in-house. for to Through a the landscape, in

deposits in strive of discussed, Cory is cost As as a to we manage as of environment. well the bank’s more our grow as this competitive in a XXXX focus funds bank the

the to elevated competitive as relationships, escrow the to Slide though, $XX third majority deposits expect was XX, to mortgage due quarter which Turning fourth billion year. total we also quarter to XXXX. A million in the the experienced of through declined million decreased in to decline the to $X.XX which build $XX.X of compared environment, outflows approximately due we back

Our to competitive deposits as compared in quarter base quarter deposits of of deposit XX.X% of the the impacts of total XXXX. deposits as the from a total fourth shift third in bearing the during XX.X% decreased landscape reflected XXXX quarter in the non-interest to

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

touched fourth which provision $XXX,XXX for to of losses a provision third loan in of losses the $XXX,XXX negative for in of Curtis we quarter, on, recorded quarter compares the XXXX. As loan

assets principal segment, credit portfolio stable improvement our loan reduction experience at XXXX. the XX net which points to $XX.X fourth the assets continue we quarter a continued be from quarter metrics ratio, in Overall, the fourth in the led of our in third was seen can hotel basis in by in total outstanding to had of which XXXX million non-performing quarter. This of in unchanged

losses reserved we uncertain United are the and additional Importantly, rate environment to businesses for in XX future rate environment ratio rising pre-pandemic Nevertheless, and necessary for impacting we basis our due the the are provisions economic points losses customers periods. States, well uncertain given in conditions and higher remain make economic that may allowance persistent levels. inflation than believe is loan rising levels future which loan for

as result the third and the a quarter result personnel of as expenses. of in The a personnel and of quarter expense expense the of $XX.X primarily million compared of non-interest cost XXXX our of Slide the to fourth of insurance of quarter the during mortgage as $X.X related in $XX.X in a decline commissions million decrease XX, to million largely a legal the and fourth was commission mortgage decline of in XXXX. million to personnel due $X.X and million XXXX a expense third $XXX,XXX in decrease revenues. XXXX compared was in decline ahead to of Skipping $X.X The insurance decrease in decline was significant quarter in

not our inflation carefully mortgage of Importantly, expense manage us we our overhead some retired efficiencies, taken allowed personnel lower, across personnel replacing the which in wage have together has who managed managing to through have bank XXXX. through driving

the we to believe work wage as individuals cost industry. as market fourth quarter’s to year Looking first be from employees non-interest the ahead, modestly well our the from keep That attract said, remaining rise and flat pressure expense continue. inflation in manage also we quarter we XXXX inflation find the and to can across as the we while as competitive of continue expect level to to talented offsets to

Moving quarter end tangible was at equity to million securities Slide value fair securities net stabilized per and of increase increase of of increase as the $XX.X for fourth ahead the with to tax, of volatility the The third value value a XXXX. per The we by increase and quarter our of of XXXX. our quarter. the share capitalized the $X.XX income markets in valuations by $XX.XX from well an remain $X.X in value and related in available the million. during the of assets driven dividends in by of tangible of hedges reduced fourth net common share result end increased paid an was fair X.XX% of at increased Tangible after book to XX, sale quarter fair X% fourth the the XXXX, of

I’ll for now concluding to Curtis call turn remarks. back the

Curtis Griffith

major expanded successfully our year Steve. you, markets. lending very I’m platform proud we conclude, results To Thank our in our metropolitan of this as

in better bank led markets. than sizable net changes our to revenues. growth and the our interest ownership to banking the a effectively continued While expected our This Texas of offset West which to our decline in loan take in local mortgage income, advantage community increase bankers

the a team look likely year will face position. markets what will our that to As we excellent we’re of believe an slow, be in ahead, I loan believe the moderate our positioning to recession, but remain national We deliver resilient growth.

maintain to we returns shareholders. as goal and standards achieving thank our year. like to expense for our deliver customers over our management last would work our communities and we and on hard underwriting to commitment the discipline Additionally, of I superior and for strive their long-term our risk conservative employees our will our

for line for please Thank time any Operator, open your questions. today. the you, again,

Operator

conducting time, [Operator And our question. And at this Brad Piper with the first we will be of line session. question-and-answer Please a with comes Instructions] your question proceed Milsaps from Sandler.

Brad Milsaps

good Hey, afternoon.

Steve Crockett

Brad. Hi,

Curtis Griffith

Hey, Brad.

Cory Newsom

afternoon, Good Brad.

Brad Milsaps

last questions. going maybe with Appreciate in kind you on to control maybe about is you about first how entire down Just you what quarter, how I some that my kind think the of great to great sit the obviously, full quarter fourth possible where the curious from maybe the I’ll was? the still expense quarter Steve, said guys you appreciate expenses. to quarter, color think year, think year. I slightly. around you but flat the taking start given of think as Is fourth happen today

Steve Crockett

of we mean, again, I fluctuations. I do definitely little a bit insurance those some and have cycles. mortgage have will Yes. mean,

may keep expenses We QX good do projection, then flat an back be down. lower, So be some range. able to that a I slightly mean, yes, little that fairly about down in bit still that over the overall feel and then QX, increase will come and increase QX, to in of we’ll be we’ll

Cory Newsom

on I’m is mortgage this save the proud mean, thing we’ve I the here’s color that that. I’ll obviously, got But expense of. just side. [ph] really Brad, to Cory. add

a people and our I outside do are expense handle a of else. and the and look on it everything We on way on really find care We other expense to some mortgage. if to save And salary to everything keep mean you savings. flat able facing were – those have at team pretty take

Brad Milsaps

sort in Steve, kind was work just everything with really of shifting Do this contract peaked impressive the trajectory saw the gears a and Yes, curious, through thoughts here? around likely deposits. like, your you have a of in it you NIM and Maybe additional no, the pressure year. quarter may to on NIM have margin. of what probably starts you net are going, Just year-to-date interest kind from It bit great. think late you XXXX? kind sounds move it as to of

Steve Crockett

a we’ve cost, to interest really of a we pretty a lot at we’re We side. that. won’t on but to say, continue think mean, increases we – we’re the would would it’s see – that’s increase see Yes, mean, looked different say income question. but peaked, I on great I probably it should I the still close ways. it’s

may to guess would around, QX going like flat, believe I it’s grow. we see maybe be that keep area. see So at it’s mean, you I it’ll But think that again, not going be not it to, a I while NIM be right in we this you to would point could it’s But going We around hopeful. mean, grow to right maybe don’t we contract. strive slightly did – slight either downward.

Brad Milsaps

to then kind there me, nicely the just variable? The of in get that’s that, wanted on kind of can is certain there remind of just are a there? follow several row, taxable to securities a what drivers percentage of a really yield of or has key kind you quarters for on floating kind improved handle your And portfolio up

Steve Crockett

reprice so the every XX think Yes, I around side, got, in taxable so month. it’s do CMOs on we’ve some million that that’s or

have those as at but do reprice. look the have so the yield. very that beginning They rates obviously up, of gone didn’t the And helped good year, those

us helping there. out what’s that’s So

Brad Milsaps

it’s of only Okay. repricing, be kind a something, guess that’d or I then little it of guess. the about and XX% regular just of – over I rest XX%

Steve Crockett

Yes.

Brad Milsaps

Okay.

Thank very queue. back in I’ll the Great. much. hop you Okay.

Steve Crockett

Brad. Thanks,

Cory Newsom

Thanks, Brad.

Curtis Griffith

Brad. Thanks,

Operator

the Gailey our with then proceed question. with KBW. from of And Brady line your comes next Please question

Brady Gailey

guys. afternoon, Good thanks. Hey,

Curtis Griffith

Good afternoon.

Cory Newsom

Hey Brady.

Steve Crockett

Good afternoon.

Brady Gailey

from something Did and margin? that income the and to I heard loan $XXX,XXX flow benefit a that correctly. through fourth purchase did So spread in a think sure the want I Steve, quarter make I happen recovery. mentioned you

Steve Crockett

nine was points think or That it basis it basis NIM. improved about – eight did. it points was that Yes, I

Brady Gailey

Okay.

into could least be on point percentage of So a modest that a view, at modest, headwind XQ margin? from a be the that could

Steve Crockett

Yes.

Brady Gailey

Okay. the so you in I But ESOP the liquidity you that. will canceling understand will the XXXX. think mean, guys And you with active, do buyback stock of pretty think All right. XXXX? to want stock, you you help the know be as you potentially were then, I active in increase inexpensive? do active is buyback be the will with you still said, in So the I

Curtis Griffith

This is Curtis.

We’re really looking at it.

We’re level. at in plenty cash do on next month get of at things go is it. we what the want that, two And if really a good analyze so, company kind got level decision position. our Board back But to We’ve to of over – available and on after going whether a the we in. really holding or make probably

got we I look there’s of kind still We’ve that just there. moving on a had all right in feel we be make several a we some to But here good everything. think as happening value at parts be like January. didn’t and it’s look to right Board to it’s decision as those time right at going now a decision of

Brady Gailey

I beginning guys in is play in now And for correctly CECL that then, you do XXXX? remember

Curtis Griffith

yes he January. sir, we of give a you yes whole Yes, were on if color too, Oh, yes. but on Steve give lot you supporting… – in that color adopted that more you if you Yes, CECL, sir. we [indiscernible] can can

Brady Gailey

a just the just it’ll given do ratio, impact Yes. you a reserve think adoption? have on Maybe material on, thought

Steve Crockett

Yes, are so and at adopting Curtis we it. this point as said,

disclose model. where now, up are We’re in other in still a few impact that validation XX-K. have to material we’ll to there’s a not finishing number some we as things the current of our in before But

Curtis Griffith

goes I that think a lot back. of

conservative how look this we’ve you at been If point.

I anyway. think high been have pretty numbers been it’s our

Brady Gailey

Okay. growth. And then historically know single finally have to for you to loan guided high digit me, mid I guys

I what’s XXXX but you expectation for the loan I heard think say, growth?

Steve Crockett

still think environment. could we like cautious but in little achieve I’m Well, I’d high to single, a this

there working can’t a number bigger well. Of course, keep we we with – as

a if are I can good. But to think we we interested. come of it. some hit, affects seeing be are payoffs. that some hit customers including will lot projects and doing coming So but that in, going And pause, kind have customers of And it’s are on we pretty new some still

to we’re great So deals. look really getting some at

achieve to we some opinion. during So we’ll be probably still mid I do think my can just think single growth more digit But low XXXX. I in range,

Brady Gailey

Okay.

Curtis Griffith

Yes, with. I agree

mean, think be. the single’s but on us. look great Texas unrealistic can’t I I what it you January not we is January, been some base of But to good a at look, place for for low if projections think has a economy, all you the month.

conservatively that’s reasonably glad digits. where really but We’re we are, and low single

Brady Gailey

Okay. All right. Great. guys. Thanks for the color

Steve Crockett

Thanks, Brady.

Curtis Griffith

Thanks, Brady.

Operator

remarks. And we turn and closing now Griffith the the I’ll Curtis end over have Mr. reached of answer for the back session, call to

Curtis Griffith

you, Thank operator.

uncertain. We expect problems achieve As economic This outlook year. banks. very heard, dealing We’ve most don’t issues as other a funding had you in we’ve significant credit markets, cost with many and we quarter. of good had what we did is deposit and in same a are good Very our proud XXXX. the of

do we We’re strong relationships. through going to that’s issues, handle that our just and as other

and have our incentivizing and deposits in achieving, while on growth focus good, be in we’re believe deposits, expenses we going controlling good reasonable to will growth to loans. We both people organic

We incredible have an team.

keep excellent Thank to for out We’re you shareholders. confident us for delivering any questions. and call that they customers reach the of for being please all you if today, and on will have results our our

Operator

concludes this this disconnect time. Thank participation. your at gentlemen, for conference. And line and ladies you you your And may today’s

South Plains Financial (SPFI) 26 Jan 232022 Q4 Earnings call transcript