South Plains Financial, Inc. (NASDAQ:SPFI) Q3 2020 Earnings Conference Call - Final Transcript

Oct 27, 2020 • 05:00 pm ET


South Plains Financial, Inc. (NASDAQ:SPFI) Q3 2020 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen, and welcome to the South Plains Financial Third Quarter 2020 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.

I would like now to turn the call over to Mr. Steven Crockett, Chief Financial Officer of South Plains Financial. Please go ahead, sir.

Steven B. Crockett

Thank you, operator, and good afternoon everyone. We appreciate your participation in our third quarter 2020 earnings conference call. With me here today are Curtis Griffith, our Chairman and Chief Executive Officer; Cory Newsom, our President and Brent Bates, City Bank's Chief Credit Officer.

As a reminder, a replay of this call will be available through November 10th, 2020. Additionally, a slide deck to complement today's discussion is available on the Investors section of our website.

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

Additionally, during today's call, we may discuss certain non-GAAP measures, which we believe are useful in evaluating our performance. A reconciliation of these non-GAAP measures to the most comparable GAAP measures can be found in our earnings release.

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

Curtis C. Griffith

Thank you, Steve and good afternoon. On today's call, I will provide a high level review of our results and an update on our priorities for capital in light of our recent subordinated note issuance. Cory will discuss the stabilization that we have experienced in our loan portfolio as we have seen a sharp decline in active modifications related to COVID-19 during the third quarter as well as the success that we have achieved growing our mortgage business and scaling our infrastructure. Steve will conclude with a more detailed review of our third quarter 2020 financial results and we will then open the call for your questions.

To start, I'm very pleased with our performance as the Bank's operations continue to run smoothly and our customers have largely weathered the uncertain economic environment to-date. Our ability to manage through this crisis is a testament to our team and the significant steps that we have taken over the last six years to improve our systems as well as instill a conservative credit culture at the Bank, which can be seen in our credit metrics this quarter.

Turning to slide four, we reported net income of