Brent A. Bates
About Brent A. Bates
Brent A. Bates is Senior Vice-President and Chief Credit Officer of City Bank (South Plains Financial’s wholly owned subsidiary), age 50, serving since 2020. He previously held senior credit roles at Simmons First National (Division Credit Officer, 2017–2019) and Southwest Bancorp (EVP & CCO, 2011–2017), after progressive credit management roles at Arvest Bank and initial regulatory experience as a bank examiner with the Texas Department of Banking and the Federal Reserve Bank (10th District) in Oklahoma City. He earned a B.S. in Business Finance from the University of Oklahoma (1998) and graduated with honors from the Graduate School of Banking in Colorado (2010) . Company performance context during his tenure: 2024 net income $49,717 and diluted EPS 2.92; cumulative TSR value of $180.15 vs peer TSR $143.68 for 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| City Bank (South Plains Financial) | Senior Vice-President & Chief Credit Officer | 2020–Present | Leads credit management and asset quality for the Bank |
| Simmons First National Corporation (SFNC) | Division Credit Officer | 2017–2019 | Division-level credit oversight following SFNC’s acquisition of Southwest Bancorp |
| Southwest Bancorp, Inc. (OKSB) | EVP & Chief Credit Officer | 2011–2017 | Led enterprise credit function at OKSB |
| Arvest Bank | Progressive credit management roles | 2003–2011 | Multiple credit management positions across the bank |
| Texas Department of Banking; Federal Reserve Bank (10th District) | Bank Examiner | 1998–2003 | Regulatory examinations; supervisory experience in TX and OKC |
Fixed Compensation
| Component | 2024 Amount/Terms |
|---|---|
| Base Salary | $304,500 |
| Target Bonus % | 30% of salary |
| Max Bonus % | 45% of salary |
| Discretionary Bonus (Individual performance) | $27,405 |
| Performance Bonus (Non-Equity Incentive) | $109,620 |
| Stock Awards (RSUs) – grant date fair value | $91,333 |
| Option Awards – grant date fair value | $0 (none granted in 2024) |
| Other Compensation (select perquisites below) | $36,131 |
Perquisites and Other (2024)
| Perquisite | Amount |
|---|---|
| Vehicle expenses | $8,030 |
| 401(k) match | $15,225 |
| Phone reimbursement | $1,200 |
| Company-paid group insurance premiums | $892 |
| Country-club dues | $10,784 |
Performance Compensation
| Metric | Weighting | Target | Actual | Payout Factor | Notes |
|---|---|---|---|---|---|
| Profitability (SPFI net income vs budget) | 30% | $42,206 | $49,717 | 84 | Result exceeded target; factor per plan table |
| Efficiency Ratio (Bank) | 20% | 66.32% | 63.40% | 26 | Better efficiency than target |
| Asset Quality (Bank; relative to peers) | 20% | 0.54% | 0.61% | 20 | Slightly worse than target; conservative approach maintained |
| Individual Performance | 30% | — | — | 30 | Committee discretion |
| Total | 100% | — | — | 160 (capped at 150) | Cash bonus earned in December, paid before March 15 following year; no vesting |
Equity Ownership & Alignment
| Item | Details |
|---|---|
| Total beneficial ownership | 38,193 shares; less than 1% of outstanding |
| Breakdown (footnote) | Includes 26,016 shares underlying vested options; 12,177 nonvested or unreleased RSUs |
| Shares pledged as collateral | None disclosed for Mr. Bates (pledging disclosed for other insiders, not for Bates) |
| Option exercises and RSU vesting in 2024 | No option exercises; no RSUs vested for Mr. Bates in 2024 |
Outstanding Equity Awards at 12/31/2024
| Instrument | Status | Count | Strike/Price | Expiration | Vesting Schedule |
|---|---|---|---|---|---|
| Stock Options | Exercisable | 14,488 | $20.93 | 02/19/2030 | Vested |
| Stock Options | Exercisable | 8,646 | $19.62 | 02/24/2031 | Vested |
| Stock Options | Unexercisable | 2,882 | $19.62 | 02/24/2031 | Vests on 01/01/2025 |
| RSUs | Unvested | 1,413 | — | — | Vests 50% each on 02/16/2025 and 02/16/2026 |
| RSUs | Unvested | 2,393 | — | — | Vests 1/3 each on 02/16 in 2025–2027 |
| RSUs (2024 grant) | Unvested | 3,486 | — | — | Vests 1/4 on each 02/21 in 2025–2028 |
Employment Terms
| Plan/Agreement | Key Terms |
|---|---|
| Executive Change in Control Severance Plan | If involuntary termination without cause or resignation for good reason within 24 months post-change-in-control: lump sum of 1.5x base salary + pro-rata target bonus + 1.5x annual total health premiums; acceleration of equity awards (performance awards deemed met at target); 280G cutback to best net after-tax outcome (no excise tax gross-up) |
| Clawback Policy (Rule 10D-1) | Adopted Oct 2, 2023; recovers excess incentive-based compensation for three fiscal years preceding an accounting restatement |
| Insider Trading/Hedging & Pledging Policy | Hedging strongly discouraged; preclearance required; margin accounts prohibited; pledging discouraged with preclearance requirement |
Deferred Compensation (Salary Continuation Plan)
| Provision | Details |
|---|---|
| Agreement effective | Oct 1, 2022 (post-IPO form) |
| Vesting | 20% vested as of the proxy date |
| Benefit | $50,000 annually for 15 payments starting at age 65; lump sum equal to benefit liability balance if separation from service or death before retirement age; forfeiture for cause or covenant violations |
| 2024 activity | Company contributions $16,141; ending aggregate balance $30,820 |
Potential Payments (as of 12/31/2024)
| Scenario | Cash Severance | Equity Acceleration | COBRA (Healthcare) | Total |
|---|---|---|---|---|
| Termination without cause or resignation with good reason (outside CIC) | $0 | $297,003 | $0 | $297,003 |
| Disability (outside CIC) | $0 | $297,003 | $0 | $297,003 |
| Death (outside CIC) | $0 | $297,003 | $0 | $297,003 |
| Change in Control (no termination) | $0 | $297,003 | $0 | $297,003 |
| Termination without cause or resignation with good reason in connection with CIC | $548,100 | $297,003 | $40,735 | $885,838 |
Performance & Track Record
- Credit execution and risk posture: In Q2 2025, Bates indicated loan payments were ~$15,000,000 higher quarter-over-quarter, driving a cautious outlook for H2 loan growth (low to mid single-digit), and noted “ins and outs” in criticized assets with a slight net increase that raised general reserves; certain smaller loans entered nonaccrual with a conservative approach taken. Management confirmed no specific reserve on the large multifamily credit discussed, and highlighted concurrent recoveries in the quarter .
Investment Implications
- Pay-for-performance alignment: Bates’ annual incentive is tied to company profitability (net income vs budget), bank efficiency ratio, and asset quality, with a significant individual performance component; 2024 payouts reflect strong profitability and efficiency but lower asset quality vs target. This aligns his cash compensation with core credit and profitability outcomes investors monitor .
- Low near-term selling pressure: No option exercises or RSU vesting for Bates in 2024, and no pledging disclosed, reducing forced-selling risk signals; his equity exposure is primarily through vested options and multi-year RSU schedules .
- Change-in-control economics: CIC-related severance of $885,838 with full equity acceleration provides retention but also creates potential event-driven incentives; no 280G gross-up and presence of clawback reduces governance risk relative to typical golden parachutes .
- Credit execution risk: Commentary points to elevated repayments and slight increase in criticized assets, implying vigilant reserve management and potential near-term loan growth moderation—key watch items for asset quality and margin trajectory under his oversight .