SPFI - Earnings call transcript Q2 2024 | South Plains Financial, Inc.

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Operator

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

Second Quarter 2024 Earnings Conference Call.

During today's presentation, all parties will be in a listen-only mode. [Operator Instructions] I would now like to turn the call over to Mr. Steve Crockett, Chief Financial Officer and Treasurer of South Plains Financial. sir. ahead, go Please

Steven Crockett

Newsom, and release conference everyone. of today call. Chairman on The and Officer; Griffith, operator, our News Brent joining Credit our earnings Chief are appreciate website, presentation our our our Officer. Cory Executive Chief earnings With earnings and section President; good you, spfi.bank. and We Bates, press afternoon, related you Curtis our and Thank Events me available here are

earnings this other today's I'd call comments are results call All begin, to do earnings could and and press those like required results. see from statements made statements safe variety everyone that statements. anticipated by our of release cause law. subject materially not contain are any we and forward-looking herein to our Any Please in may Before as date, as today's our presented only subject harbor update except of remind forward-looking risks, forward-looking factors actual a those harbor such to safe to duty differ in statements, future we uncertainties undertake to made and that during statements are presentation.

which presentation. discuss the these performance. call, be in over to in we today's me financial financial can to GAAP evaluating measures and financial Additionally, during you. our let release earnings believe also the found in certain measures hand A non-GAAP useful we non-GAAP may are earnings of measures, our Curtis, reconciliation it most comparable

Curtis Griffith

as high-performing will as quarter strive the good our we well and drive drive highlights across review to then our XXXX earnings Starting and returns organic to financial the loan will as to as $X.XX in as today's which discuss quarter expansion. briefly bank. well second be lifted our the our efforts you, portfolio to in I our afternoon. presentation, growth, and call, Cory to a of Steve our On discuss initiatives profitability review Steve, yield growth bank. our diluted second of will continue first Slide results portfolio our on we of share second Thank robust loan our to earnings Strength on detailed of X more a compared quarter from loan per delivered came quarter of results. contributed with as margin $X.XX the quarter the conclude XXXX.

We liquidity our through bank. deposit keep also costs with customer the focus to quarter. closely profitability worked continued manage a reduction maximizing deposits to the and steady returns led on a we the modest in of to This as

competitive expansion started remained new believe the we pressures have our for Importantly, deposits to in solid to have leading NIM while loan quarter. ease, robust, yields

our modestly second normal loan Looking to more Strength a year, compared expansion to while quarter in average also improvement in moment. are to quarter. as quarter, to X X.XX% efficiency levels, return likely moderate costs higher we NIM the assets deposit linked the half to as to to of XX.X% the move will first returns in improved growth Cory the basis to expect in as our while the declined compared our as ratio, which led on XX.X% points further to discuss

Bank ranked the also XXXX and customers. our commitment our their as Forbes Best I Banks XXth deliver, XX, progress that at tangible recognized America credit at pleased financial $XX.XX continue to steady Magazine am which per $XX.XX grew to the is a and City being employees value XXXX. bank as with compared also June XX is pleased to book in their in more broadly that We share very List. March our we performance our to am to I

focus on This all us the and XXXX. $XX level speaks assets management our Plains with between for a South billion $X bank best-performing Global S&P operating XXth Intelligence team's community stakeholders. at value in While Market billion while ranked to high U.S. maximizing our

of credit to aggressively the manage loan our to portfolio. continue credit, we Turning quality

that quarter, since This of have substandard had on second loan nonaccrual. the rated have we closely monitoring surprise any our This credit During moved and over a a Houston a proactively and we June of in Houston or last that multi-family markets. year loan working substandard multi-family nor been the market a in is not property is period. time reflection the of in to

focused early, on taking the calls, with discussed we our prior working borrowers culture steps on have a is appropriate to we problems credit have strong challenges. As that and identifying resolve

in them. credit portfolio order We continue to stress test then quality problems the work our potential and of identify loan early to vigorously remediate to

sacrifice see a never we to for national the especially the starting in will credit where few growth, are quality environment, We in economy. stresses current

We are with operate economy government. the to in business-friendly growing where and fortunate remains Texas, population healthy a state a

interest my We high cautious current will remain environment. vigilant rate and given

have loan As our of a the environment few confidence result, and we come quality are for aggressively portfolio. next credit over quarters preparing may in the whatever

While our ratio believe as June the economic that well position regulatory company significantly capitalized. XX.XX%. the Tier XXXX, XX, the are consolidated bank the was in exceed strong risk-based be a levels ratio outlook we Tier we each minimum to necessary At may capital common X and deemed uncertain, XX.XX% was equity leverage X and the be

ratio held stood quarter end. at our Additionally, deposit for XX% investment loans to at

also XXXX August remain to our a Yesterday, paid we authorized bank capital be quarterly share a of Board on both XXXX. our through of which shareholders will XXst returning quarterly quarterly record July our of shareholders position, XX, to our focused while dividend. per $X.XX XX, the for be Directors stream on on consecutive steady our dividend, growing income dividend Given

excited Board for stock through million being shares. February. activity conditions both in and we across well limited organic authorized in challenges. as is quality of our have limited for volume growth credit ahead repurchase ensure had to of of I'm markets, $XX loan balance our our we the buyback staying a have we're bank opportunities To We place, community the second mindful the is proactively managed also economic drive and well as lay growth many for which ahead. that program as quarter positioned, well while portfolio We of the to as being varying metropolitan our we believe, trading any conclude, the prepared doing liquidity

call Cory. me turn the let over to Now

Cory Newsom

you, the Thank the and Starting quarter. X, compared good afternoon, million everyone. to loan Curtis, quarter on our XX.X% $XX.X Slide in by as linked portfolio grew annualized we or second

loans, remained growth seasonal in occurred direct property loan loans Our agriculture-related and energy loans. single-family and relationship-focused primarily

will loan portfolio. this As partially consumer offset on, auto in growth was our I the touch decline loan expected by

at rate and provides quarter, market loan the interest $XX We liquidity a below approximate opportunity also the an experienced was market million second redeploy a us the payoff to rate. in which at

year Looking to XXXX. loan forward, to for the growth mid-single-digit continue we full expect low

is on we based Our the could expectation to the payoffs continue through experience second half guidance that year. of

loan X linked to was so expect of loans experiencing would Additionally, quarter. range. second end to largely development than payoffs through on anticipated, are full quarter, growth if we've several up X.X% our as of X.XX% been loan high points and second at to the funded quarter, compared construction in been tailwind is set we lower have bigger portfolio the the be this that basis our the decline. year our in yield Overall, our The

to expected closer benchmark points, or interest dependent their the inflation ability XX through Reserve rate move their X% Federal is basis the reduce year, we by their on bring may target. it to XX As to that begin

billion growth. Skipping to loans net X. continue and million markets our and to of Dallas, will to our loan metropolitan interest El quarter. by may We new margin elevated linked in supported $X.XX our income begin a Paso to the markets $X believe which by that We while to X% Slide of lack be keep liquidity in annualized grew as rates yields decline, Houston compared major or

impacted Paso, I was growth the Our million down $XX in pay mentioned. by previously which El

total XX.X% loan our portfolio scale loan to which have metropolitan portfolio, the represents lenders major that now speaks Our our achieved. of

relationships competitors both South a and through go dislocation forward, we to move to is to an take leadership Permian and opportunities ownership that our deposit Looking changes, also team opportunity attract continues by mergers, South from is Plains. benefit to which and continues to region as share to Basin for creating relationships dislocation loan to provide which competitor caused high-quality Plains. continue experience The

X. in on continues to acceptance brand invested the people, the been in are loan growth our in The that and and ahead infrastructure As quarter opportunities City Slide experiencing branches to our we've first the have income interest I as region. Permian on in we've Bank our should as outlined gain growth quarter we call, reprice loans hitting while discussed our stride drive

we resets. have lower rate principal repayments to As many growth interest to as rate deliver continue we experience continue to loans income and/or been discussing, expect

through We the expect quarter. continue to third the pace

to Slide XX. Turning

a more higher to remain portfolio volumes be competitors as aggressive seeing quality million the to while shrink. $XX.X price the credit second declined auto the focus are on our the have We're indirect credit maintaining of We gradually risk we changing not million loan continue and how with declined. spectrum the end at portfolio quarter. this end Our portfolio comfortable of $XXX.X at cautious of

first seen will said, indirect quarter, credit never the be basis points flat in were due Curtis in second As essentially sake quality quarter. XX-plus credit strong XX we portfolio's the from XX the where sacrifice past quality days points basis growth. This can in of further the for

and early the ours past consumer Additionally, to hold indicator the having quarter. steady our dues XX- continue second an XX-day is challenges through are to that

to Turning bank quarter in revenue, growth investment primarily quarter. card million offset due to service revenues, from to adjustment $XXX,XXX generated continued included customer business. in noninterest incentives in $X of the growth Slide card assets. $XXX,XXX mortgage rights value million a in the increases This were in These mortgage a charges the and $XX.X incremental result the servicing fair small in increases income usage as which treasury a investments second by decrease the management and in companies as XX. of of banking in $XXX,XXX interchange linked compared during of period. $XX.X mainly of million was partially business received and at decrease our income of We

to noninterest our Steve. focus would to of Continue call turn the like as For quarter, first grow to over XX% revenues compared noninterest remains to income the the second of our a now in quarter. was I XX% income bank team.

Steven Crockett

Thanks, Cory.

diluted quarter, in which share quarter. second compares to linked was the For per $X.XX share per the $X.XX, earnings

was due the as compared income interest in yield rise a and and in of loan income other assets. interest on in average the quarter. in an interest income was $XX.X basis to interest-earning quarter as $X.X X for quarter, mainly income a million million loans. of linked Net loan primarily increased compared $XXX,XXX $XX.X $XX.X to XX. interest the Interest Turning in linked to to the income a quarter the second million to million for second Slide in rise increase due $XXX,XXX The of decrease growth loans on points

Our due increase X second X.XX% our equivalent that margin basis calculated quarter. in tax on net of offset in basis was interest in to primarily cost compared than NIM the point was X.XX% to a rise our as The the higher more deposits. the to loan yields quarter linked

through compared XX.X% second declined linked the quarter. quarter in XX.X% deposits modestly noninterest-bearing to the deposits to total Our as of

As of was increase an outlined points through points XXX of on linked quarter, the basis deposits cost in Slide eased our quarter. for as deposits from XX, X the average has competition basis quarter the the second

aggressively to decline deposit quarter. costs to we which our our maximize Importantly, has funding led the have in profitability, our in been base modest a managing

to liquidity initiatives needs drive growth match second our loan We growth the drive continue pursue through year. of to work organic to as the we deposit half to

prudently We and focus returns. we will manage profitability our liquidity on our to as continue

Turning to Slide XX.

charge-off loan from Our the prior end loans quarter. ratio losses for X.XX% $X.X total the nonperforming for at balances higher million was and investment credit for the quarter, of XX, to increased June which to credit largely net the attributable We in losses of a second during recorded unchanged quarter. was XXXX, loans held allowance provision activity,

totaled was was $XX Skipping As at multi-family due our date Curtis million loans accelerated. from an status property of of end quarter million ahead the that classified a placed to on, first the maturity quarter, on million previously XX. the after nonaccrual nonperforming increase touched $XX.X $XX.X to Slide second credit the

quarter. noninterest as commission in of million originations Our was the linked largely $XXX,XXX the compared expense $XXX,XXX result to in The the expense rise increase $XX.X of quarter second a as loan increase. $XX.X was mortgage in million

expense Looking from second ahead noninterest the quarter's expect to we to modestly third the level. rise quarter,

value equity basis of common remain Slide end to end with assets the X.XX% to at paid. compared back We Moving per primarily the was quarter, of of XX. share well tangible call book XXXX. remarks. $XX.XX June XX, capitalized to by points increased $X.X increase first dividends XXXX, an of increase for Tangible from second the of the quarter. tangible of income concluding as to million after I'll turn $XX.XX as Curtis The net of to the March XX XX, driven

Curtis Griffith

To Steve. loan to proud for returns second as we as growth focus all conclude, relatively of maximizing to of our you, quarter Thank our on we an expansion our results stable, to while strive the funding of very costs we healthy stakeholders. I'm Through which value our generated NIM. deliver and profitability our led keeping quarter, continue

Looking questions. Operator, deposit expand today. markets any the progress lending noninterest open the for to positioned are income. I for well costs, we're optimistic of are further line seeing across South easing on forward, competitive grow we the future and our believe on a Thank you our slight to again for good time and on I Plains. your opportunities making pressures please growing remain bank,

Operator

Instructions] question line with of question. proceed first Rabatin from comes Hovde you. the with Group. Thank Our [Operator Please your Brett

Brett Rabatin

from with Wanted Or income Is half and various off year? run to a to fee any be different expect the relative good bank to of quarter second you build do the here? to the rate start buckets card. the of and quarter those of of back that of is the fees, the kind level second

Steven Crockett

a line annual There's a elevated on rebates there's bank so, be noninterest that that Yes, good or is bit card do. pretty that, might second things of make a maybe some It's other items rate run those overall income, few Brett, side. little outside bit should little just the and Steve. higher, in of usually what this the mortgage Outside $XXX,XXX quarter. -- probably.

Brett Rabatin

CDs little a maybe pressures And you may can deposit whether you then, easing X% quantify or Curtis, bit. be more? you it's that lower reprice any some to a that, give say talked able you when the being us examples Can about little of easing,

Curtis Griffith

reasonable media I ads definitely might the dollars there's we very Xs. still about in kind over. There move start out fewer out think a stuff local the ad them I'd to still some that out a few we're just run of But to not just we're to we've being see chance. who the seeing And taken X. going have right we're I I of deposits dollars and in kind now, a some of it's in are be And if that guess, say that with we're for business elsewhere, hungry to kind the certainly to try high some position rates the market spent still that liquidity. most the markets. not going summarize But And spent, there competitors off, there, it -- money CDs seeing a or deposits. but our being accounts are whole that's of lot high-cost that keep move to of interest want give we'll has very advertising diminished way promote

Cory Newsom

I though. I that, would think with just tack on

we working on our We we're deposits, that's the runoff not of some of that it. seeing some been at coming rates have reducing with any and have

going cut a Its down not have we're dollars. to going and be so Now down much think we're to that to of too a dialing to naive them. to we little challenge replace it go try slowly been But new bit. chase that

Brett Rabatin

Can loan. color reserve you how specific appraisal? just sneak And loan in nonaccrual off that you it? that on have Do a you the one provide could last around see working multi-family I then one If any bucket? on

Cory Newsom

is about we've where of problems how over tell how it this many would to this. first working early. example going accounted around get a is perfect And or this got one been I and identify identified have year this mean credit well and to one. guys up set we with had on I'm this -- ended We've occasions of resolved. a you that for. this think ago to fully we you discussion try I trying with we So kind

think what don't we're with own this one. our this talking working view systemic to tell in process way the I don't credit stop I think way of identify We that. you And just think in one and going early are this that, of I these I being fact way people But work -- good a one the I and out on our with with of probably pretty of multi-family. we isolated would have proud it. is and I'm history about the where we think as its it that to right of I'm that's we've right. this to really the try got it. example is It trying things falls talked identified that line about back with them. And we through credits in set of

Operator

line from Yanchunis question next Raymond James. Our of comes the Joe with

Joseph Yanchunis

Paso. been understand past of $XX markets the in I million have is markets? over lion's the outsized quarters, that few of your to there So rural year? balance you And believe growth. coming out loan the metro from trend to a for loan the El do your for share there said growth the you I But delivering anything call the And expect pay down, continue was

Brent Bates

it think I staying balance stable year. in, bit coming Average been Our same. say -- the about getting more is have smaller, is but a little are this its pipeline little pipelines we a to the And going loan pretty what total bit granular. throughout would is be

other becoming but less we've So year, metro becoming pretty our more mix, and good markets. of it is a got less this

Cory Newsom

great had the -- mean into really for and makes I back bringing business markets. in Texas the mean us. if Permian you up look at the Joe, I West stuff the what stuff. we've non-metro these of some well,

metro to complement doing we're nice in a stuff. it's the what So,

Joseph Yanchunis

you the the this appetite quarter? in recent you here? of given purchased stock for And on the run repurchase in your then activity in And quantify can but some you materials, missed how the stock, kind did much shed color perhaps I from share

Steven Crockett

the and quarter. a early really -- in in of earlier part the was amount buyback nominal kind the It of in the occurred

is, be -- I'll I'll definitely more talk I the last but in significant think place, quarter that little fairly let a up bit pull But we about bit thought little with buyback the it's but number. to we got buyback in but that a not in maybe number. previous plan, we cautious we've going aggressive and Curtis where were were a it it's.

Curtis Griffith

a lately. from little we beneficiary say, think been buyback market. and But the reasonable guess, in I that all Joe, of up want of market of just obviously, has think anything begins market for the value how we'd the been generally broad-based terms we supportive recognizing in on we some that's at just that the while in tech out to goes where have But case I increase guess stocks were finding getting we're we high-flying I be place bank I'd a recent very there plan and realize of of also course, here. we're on in, the some in a do yes, home some decline slow quite in I'd more, understand pleased that most to moving stock very see run-up. to some trading of the be and adding like at pretty is bring a be prices, some maybe see to stocks there have it's to but there the in back been still bit. to some stocks the that financials. think But there. out bank undervalued money to current I now we're And levels, of a

Steven Crockett

quarter We the $XXX,XXX or XX,XXX Yes. [indiscernible] about XX,XXX, back in $XXX,XXX. bought shares

Joseph Yanchunis

with discuss point Given the rate basis forward the cut? you can to yields XX loan impact a curve,

Steven Crockett

maybe more again, we've see with then to the know closer And It's to really cut, reduction or a expense a than to but we on few given same until have of going about. at interest the deposits XX, mean, been you more rate funds tied we're benefit. would going -- rate may directly you we looking us, think just term, that see see the other the to do reprice it's bit assumptions we that. rate that we would you'd we little in a anything take you before interest the index our meaningful just to I bit repricing day could to view a to they more this as point say, I short we've it's -- a cut, a XX take see little and got to But would less basis a start deposits, few ongoing. to not in income a be neutral are would the able on. see going cuts few But an that some and public start expense relief cuts see more above a before given

Cory Newsom

think I Steve on And would what just I said. go

I think you it neutral. think look of worst-case at it's kind in a I if scenario, --

we as it's possible. work in try -- to of case, worst think it way to we neutral consistent advantage would think take every basis I even a to in But us. I just do on a even

Operator

line Our the KBW. Woody comes with from Lay next question of

Wood Lay

I your to current loan the on growth. environment? the Could was this you the in pretty talk quarter. mean in have I especially saw customers credit paydowns just of impressive, through for you appetite sort it wanted start given

Brent Bates

couple board. for decision them. Lines making that $XX still that that But was of One the loans good really mentioned, growth the types less pretty of sustainable a are of million now mostly were growth M&A-related drove while that about of right we're it's feel this last makes were transactions one it's has things that -- sense quarters, good bit like I C&I the was quarter and this the been strategic seeing our of their been little Ag the over wealthy last seeing of we're think and with pipeline steady volume, the quarter strategic I business. it deals seeing the it's a Operating kind and the But in families we're drove funding. across sense years. things -- And And that our us, than makes with of it's certainly a past for about

Curtis Griffith

other the fairly several were They we of that had and not loans books loans new times, in their completed some on we quarter. they're hadn't things, One construction and construction, going still significant the draws completely We're end but not not the coming we're of fairly of we And ago. that, volume are that say there. to out new there we in the X lending getting I had projects close. get this seeing would the so so months still on were construction that

one effect. that's So

saw that continuing You fund nice truly and bump the there on a were out They loans weren't loan new up already some balances had we'd books. to just what committed.

reason quarter, saw going probably pretty cautious, still here not the fourth third second be the I growth. some believe we I that's But we'll to think, that So quarter. it's where do in and get -- at one that. we've we'll level been

Cory Newsom

a We in I field. Woody, actually have part field in think latter years. further had of crop now, though. the we right step we crop the July sitting hadn't X here go in one We're a

So, we are, hadn't the the part, fundings funded ag time. in even had us a had we where even long for most to to point fundings we our in anticipated year, this

bit little that we're about out it years. that some hadn't we type see, that So couple had couple going if to to through a to of be be gets of of in this our and credit there, be loan a that careful we of in I into conservative what the culture. get additional going is added you we think the tell year that growth going stuff you we're But you, with

Curtis Griffith

a the The fairly quarter. while see we we'll won't good much third in quarter. ag late the fairly crop, you'll paydowns really until we traditionally, calendar get And loans see significant some when have fundings fourth during some in the year,

of quarters get get as there the benefit we'll books, the out next of So those the that too. most fundings for off X

So haven't said, have had of -- glad the to we're we it much Cory and years. just like last couple because

Wood Lay

in I you the think growth you quarter. Could the then direct the in energy in growth also loans that segment? quantify And mentioned

Brent Bates

Yes. bridge $XX really It about a energy-related corporate there. was transactions. was There million. business service There's It's transactions.

fee of deposit may some other fundings, overall and but business, with business good that good so temporary And business. be income

some it's temporary. energy-related But more the really will that be ]. So [ would E&P direct side than service of say, I on

Curtis Griffith

decide to to order money people go oil didn't of bunch to We wells. suddenly a dig

be just to clear. So

funding Now related, but are says, suddenly much bunch didn't of start direction we exploration very a loans. the loans change and energy Brent as

Wood Lay

called growth. lastly, then you in deposit implemented order some boost initiatives out And to

detail any on provide Just you initiatives? could those

Cory Newsom

deliverables. standpoint, don't -- there's we've gun I all but the do gets think all down think, chasing And about what there. is that, time. team mean, treasury I be you, to any to that you telling the tell in we're talking would -- us service our to pull remiss. been treasury expand out I smoking we for able amazing from I'm to But that, customer together, and have good think it continued there a to I But there's we trying sit one really job a

just we're so doing, And what mean, it's one I aspect throughout the of bank.

But Nah, someone's think working. can I there I don't [indiscernible] smoking is there. secret deposit that mean, one we're maintaining see I gun? So, think thing -- you levels interesting

Operator

And Stephen Scouten our line the of with next comes Piper Sandler. from question

Stephen Scouten

I just sheet to the might of there? amount there balance the maybe floating and Are pressure that around but is respond. wanted floating? still truly kind loans can you conversation think how XX% me rate, are truly revisit cuts your I modestly XX%, what was you of of remind it rate is that And book liability-sensitive guys overall? in

Brent Bates

Yes.

but at things what this paydowns and estimating slightly slightly point, given very, very liability sensitive different on different on we're still are side. We the loan

that's of variable yes, that far would the there's portfolio about immediately. As reprice XX% the of mix,

Stephen Scouten

at you Obviously, this continue were it think quarter, like overall saw growth will things about And then quite quarter. assets growth rapid not sounds average you have as did maybe down. balance but we strong growth earning on the do how that? loan But commentary, beyond nice a sheet pace, this as actually

So moving just loan out growth if kind with actual you'll and of sheet wondering how think along balance you forward? that see mix the will growth play

Curtis Griffith

still have we and really more some been bank. team of for to markets, growth, our in relationships Permian look but wouldn't the particular the get add to the working I hard in large in asset

proactive So, if trying don't maintain proper to for means. use the money any we we're not on paying is cuts, get a not the we bank rate of tying those for trying we to that do into a do be to be time. rationally liquidity And deposits down an have for. What trying good shrink want interest we there by to lot long Fed are and not plan really any high-cost back of be environment particularly, to in out

we accounts, up our tool to competitive that expand continue on we see in. continue and So utilize to new to and forward that market markets paying we'll money lean accounts in chances rates very

deposit environment. at now mid-level that seen pretty pretty we as as in that's have think we're to can this not Again, of going growth some metro trying And long continue. percentage I in growth to we're get any happy pace. even to grow a our steady I We right fairly markets. think with good low super-fast But asset annualized,

Cory Newsom

take election, that -- to we're but we able come And And that in low that and much mean, in. you making rate with this coming an demand about mean, time Curtis be figure it's just I election that. really to that's mean, trying to we're cut talking of sure I of what focus it's next comes couple going boost in. the we with loan talk was have ahead growth that to go is I you our really about. fast. prepared And out how to fund

happens this from so full if the the make as are different -- in year of and what projects after cuts rate funding waiting to demand And just we're with still there, or prepared first year, trying do there's ] X X of side [ here, that's see because the -- we sure we see we're for some we know improvement. the that just or

Stephen Scouten

these guess lines, all robust, the not build like share along internal quarters those has maybe sounds several I and it capital at And that extremely been repurchase, levels. your last attractive

about think really walk line? usage Or is the down how that through is capital for could you saving kind of those M&A? coming growth So, that you powder me Or dry be priorities? can it that

Curtis Griffith

in see election, the I'd there, the upsets much there, environment, lot around a here We the capital geopolitical Cory than Well, little uncertainties and and out rather too the little. world. earlier, have major this and thing some mentioned too could with

in to to solid to for organic some, it. But the try opportunity well capitalized as that. our that right M&A we an use say, want with whatever growth deal, growth going on we're maintain to and be foremost, comes comes sure we're along rate a way. If So, powder continue we've got to first dry you

really job So right that's there. one

Cory Newsom

we have of debt we're mind, a bit we're prepared based Stephen also little well how care sub to it. make on on that in a in to rates sure reset trying very of keep take position

we've if mean because about talk look of trading a conscious but mean so, might but And open trading to We get to whatever opportunities lot, go be we're who recently, ready. on want and that. at volume to for paired we're back may buyback, make We I come. you to want whatever I just -- back M&A want where knows. up, mean, seen we're want activity it I at we consistent not you if a a better some basis. growth, sure from

Stephen Scouten

Appreciate is time. love all I Optionality the it. good. always Yes.

Operator

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

Curtis Griffith

conservative on for loan we economy and capital national to we approach challenges, still and thing can't just situation. well do. our the cautious And while We our are we here the said perhaps to funds of We right operator. and call depositors our may in the for whatever now believe is everybody handling do participating Thanks, the think being everything, in that plan positioned do face Thank we out way. today. our potential as come you, there

can South So, we every and we into love Plains markets what that out the we we there And on business to We that have have we very to we're awesome Financial. some continue think continue City are to reason do they expansion do. the hard people work can team that markets, Bank and day the bring that those opportunities in in. will

I want of every them the And with call. So, to that, you. without be say you I thank to because here wouldn't Thank will always them. close one we

Operator

you at your today's this this And Thank time. and may concludes you. your Thank lines you disconnect participation. for conference,

South Plains Financial (SPFI) 18 Jul 242024 Q2 Earnings call transcript