South Plains Financial, Inc. Reports Second Quarter 2024 Financial Results
South Plains Financial, Inc. (NASDAQ:SPFI) reported its Q2 2024 financial results. Net income was $11.1 million, up from $10.9 million in Q1 2024 but down from $29.7 million in Q2 2023. Diluted EPS was $0.66, compared to $0.64 in Q1 2024 and $1.71 in Q2 2023. The net interest margin improved to 3.63% from 3.56% in Q1 2024. Loans held for investment increased by 2.7% to $3.09 billion, while deposits slightly decreased by 0.4% to $3.62 billion. The allowance for credit losses to loans held for investment ratio remained stable at 1.40%. The company's capital position remained strong with a tangible book value per share of $24.15, up from $23.56 in Q1 2024.
- Net income increased to $11.1 million from $10.9 million in Q1 2024
- Diluted EPS improved to $0.66 from $0.64 in Q1 2024
- Net interest margin expanded to 3.63% from 3.56% in Q1 2024
- Loans held for investment grew by 2.7% to $3.09 billion
- Tangible book value per share increased to $24.15 from $23.56 in Q1 2024
- Net income decreased from $29.7 million in Q2 2023, primarily due to the sale of Windmark Insurance Agency in Q2 2023
- Average cost of deposits increased to 243 basis points from 169 basis points in Q2 2023
- Nonperforming assets to total assets increased to 0.57% from 0.10% in Q1 2024
- Deposits slightly decreased by 0.4% to $3.62 billion
- A $20.6 million multi-family property credit was placed on nonaccrual status
Insights
South Plains Financial's Q2 2024 earnings show a mixed bag of results. Net income fell significantly year-over-year from
The net interest margin (NIM) increased slightly to
One concerning aspect is the rise in nonperforming assets from
For retail investors, the increasing tangible book value per share to
South Plains Financial has shown robust performance in certain areas, such as loan growth and net interest income. The loan portfolio grew by
Notably, the company reduced its noninterest-bearing deposits to
The increase in provisions for credit losses from
Overall, South Plains Financial appears well-capitalized with a
LUBBOCK, Texas, July 18, 2024 (GLOBE NEWSWIRE) -- South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the “Company”), the parent company of City Bank (“City Bank” or the “Bank”), today reported its financial results for the quarter ended June 30, 2024.
Second Quarter 2024 Highlights
- Net income for the second quarter of 2024 was
$11.1 million , compared to$10.9 million for the first quarter of 2024 and$29.7 million for the second quarter of 2023. The decrease in net income for the second quarter of 2024 as compared to the second quarter of 2023 was primarily due to the sale of Windmark Insurance Agency, Inc. (“Windmark”) in the second quarter of 2023, which resulted in a gain of$33.5 million before taxes and related expenses. - Diluted earnings per share for the second quarter of 2024 was
$0.66 , compared to$0.64 for the first quarter of 2024 and$1.71 for the second quarter of 2023. - Average cost of deposits for the second quarter of 2024 was 243 basis points, compared to 241 basis points for the first quarter of 2024 and 169 basis points for the second quarter of 2023.
- Net interest margin, calculated on a tax-equivalent basis, was
3.63% for the second quarter of 2024, compared to3.56% for the first quarter of 2024 and3.65% for the second quarter of 2023. - Nonperforming assets to total assets were
0.57% at June 30, 2024, compared to0.10% at March 31, 2024 and0.51% at June 30, 2023. - Return on average assets for the second quarter of 2024 was
1.07% annualized, compared to1.04% annualized for the first quarter of 2024 and2.97% annualized for the second quarter of 2023. - Tangible book value (non-GAAP) per share was
$24.15 as of June 30, 2024, compared to$23.56 as of March 31, 2024 and$21.82 as of June 30, 2023. - The consolidated total risk-based capital ratio, Common Equity Tier 1 risk-based capital ratio, and Tier 1 leverage ratio at June 30, 2024 were
16.86% ,12.61% , and11.81% , respectively. These ratios significantly exceeded the minimum regulatory levels necessary to be deemed “well-capitalized”.
Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “Our second quarter results demonstrate our successful efforts to drive profitability and returns as we continue to strive to be a high performing bank. Strength in the quarter came from robust loan growth which lifted the yield on our loan portfolio and contributed to our net interest margin expansion. We also continued to closely manage our liquidity with a focus on maximizing the profitability and returns of the Bank. This led to a modest reduction in customer deposits as we worked to keep deposit costs steady through the quarter. Importantly, we believe competitive pressures for deposits have started to ease while new loan yields have remained robust, leading to our solid net interest margin expansion in the quarter. We also continue to aggressively manage the credit quality of our loan portfolio, having moved a multi-family property loan to nonaccrual during the period. This is a loan that we have had rated substandard since June of last year and have been closely monitoring and proactively working on the credit over that time period. Our actions demonstrate our credit culture, which is focused on identifying problems early, working with our borrowers and taking the appropriate steps to resolve challenges. Looking forward, we believe we are in a solid position as the credit quality of our loan portfolio is strong, we have ample opportunities to drive organic growth across our markets, and we continue to significantly exceed the minimum regulatory levels necessary for the Company and the Bank to be deemed well capitalized.”
Results of Operations, Quarter Ended June 30, 2024
Net Interest Income
Net interest income was
Interest income was
Interest expense was
Noninterest Income and Noninterest Expense
Noninterest income was
Noninterest expense was
Loan Portfolio and Composition
Loans held for investment were
Deposits and Borrowings
Deposits totaled
Asset Quality
The Company recorded a provision for credit losses in the second quarter of 2024 of
The ratio of allowance for credit losses to loans held for investment was
The ratio of nonperforming assets to total assets was
Capital
Book value per share increased to
Conference Call
South Plains will host a conference call to discuss its second quarter 2024 financial results today, July 18, 2024, at 5:00 p.m., Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-9716 (international callers please dial 1-201-493-6779) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call and conference materials will be available on the Company’s website at https://www.spfi.bank/news-events/events.
A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed on the investor section of the Company’s website as well as by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671). The pin to access the telephone replay is 13747117. The replay will be available until August 1, 2024.
About South Plains Financial, Inc.
South Plains is the bank holding company for City Bank, a Texas state-chartered bank headquartered in Lubbock, Texas. City Bank is one of the largest independent banks in West Texas and has additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. South Plains provides a wide range of commercial and consumer financial services to small and medium-sized businesses and individuals in its market areas. Its principal business activities include commercial and retail banking, along with investment, trust and mortgage services. Please visit https://www.spfi.bank for more information.
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Pre-Tax, Pre-Provision Income. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.
We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.
A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.
Available Information
The Company routinely posts important information for investors on its web site (under www.spfi.bank and, more specifically, under the News & Events tab at www.spfi.bank/news-events/press-releases). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.
The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this document.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect South Plains’ current views with respect to future events and South Plains’ financial performance. Any statements about South Plains’ expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. South Plains cautions that the forward-looking statements in this press release are based largely on South Plains’ expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond South Plains’ control. Factors that could cause such changes include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits in our market areas and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to continued elevated interest rates or potential reduction in interest rates and a resulting decline in net interest income; the persistence of the current inflationary pressures, or the resurgence of elevated levels of inflation, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; current or future litigation, regulatory examinations or other legal and/or regulatory actions; and changes in applicable laws and regulations. Additional information regarding these risks and uncertainties to which South Plains’ business and future financial performance are subject is contained in South Plains’ most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and other documents South Plains files or furnishes with the SEC from time to time, which are available on the SEC’s website, www.sec.gov. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which South Plains is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Any forward-looking statements presented herein are made only as of the date of this press release, and South Plains does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.
| Contact: | Mikella Newsom, Chief Risk Officer and Secretary |
| (866) 771-3347 | |
| investors@city.bank | |
Source: South Plains Financial, Inc.
| South Plains Financial, Inc. Consolidated Financial Highlights - (Unaudited) (Dollars in thousands, except share data) | ||||||||||||||||||||
| As of and for the quarter ended | ||||||||||||||||||||
| June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||||||||||||
| Selected Income Statement Data: | ||||||||||||||||||||
| Interest income | $ | 59,208 | $ | 58,727 | $ | 57,236 | $ | 56,528 | $ | 50,821 | ||||||||||
| Interest expense | 23,320 | 23,359 | 22,074 | 20,839 | 16,240 | |||||||||||||||
| Net interest income | 35,888 | 35,368 | 35,162 | 35,689 | 34,581 | |||||||||||||||
| Provision for credit losses | 1,775 | 830 | 600 | (700 | ) | 3,700 | ||||||||||||||
| Noninterest income | 12,709 | 11,409 | 9,146 | 12,277 | 47,112 | |||||||||||||||
| Noninterest expense | 32,572 | 31,930 | 30,597 | 31,489 | 40,499 | |||||||||||||||
| Income tax expense | 3,116 | 3,143 | 2,787 | 3,683 | 7,811 | |||||||||||||||
| Net income | 11,134 | 10,874 | 10,324 | 13,494 | 29,683 | |||||||||||||||
| Per Share Data (Common Stock): | ||||||||||||||||||||
| Net earnings, basic | 0.68 | 0.66 | 0.63 | 0.80 | 1.74 | |||||||||||||||
| Net earnings, diluted | 0.66 | 0.64 | 0.61 | 0.78 | 1.71 | |||||||||||||||
| Cash dividends declared and paid | 0.14 | 0.13 | 0.13 | 0.13 | 0.13 | |||||||||||||||
| Book value | 25.45 | 24.87 | 24.80 | 22.39 | 23.13 | |||||||||||||||
| Tangible book value (non-GAAP) | 24.15 | 23.56 | 23.47 | 21.07 | 21.82 | |||||||||||||||
| Weighted average shares outstanding, basic | 16,425,360 | 16,429,919 | 16,443,908 | 16,842,594 | 17,048,432 | |||||||||||||||
| Weighted average shares outstanding, dilutive | 16,932,077 | 16,938,857 | 17,008,892 | 17,354,182 | 17,386,515 | |||||||||||||||
| Shares outstanding at end of period | 16,424,021 | 16,431,755 | 16,417,099 | 16,600,442 | 16,952,072 | |||||||||||||||
| Selected Period End Balance Sheet Data: | ||||||||||||||||||||
| Cash and cash equivalents | 298,006 | 371,939 | 330,158 | 352,424 | 295,581 | |||||||||||||||
| Investment securities | 591,031 | 599,869 | 622,762 | 584,969 | 628,093 | |||||||||||||||
| Total loans held for investment | 3,094,273 | 3,011,799 | 3,014,153 | 2,993,563 | 2,979,063 | |||||||||||||||
| Allowance for credit losses | 43,173 | 42,174 | 42,356 | 42,075 | 43,137 | |||||||||||||||
| Total assets | 4,220,936 | 4,218,993 | 4,204,793 | 4,186,440 | 4,150,129 | |||||||||||||||
| Interest-bearing deposits | 2,672,948 | 2,664,397 | 2,651,952 | 2,574,361 | 2,473,755 | |||||||||||||||
| Noninterest-bearing deposits | 951,565 | 974,174 | 974,201 | 1,046,253 | 1,100,767 | |||||||||||||||
| Total deposits | 3,624,513 | 3,638,571 | 3,626,153 | 3,620,614 | 3,574,522 | |||||||||||||||
| Borrowings | 110,261 | 110,214 | 110,168 | 122,493 | 122,447 | |||||||||||||||
| Total stockholders’ equity | 417,985 | 408,712 | 407,114 | 371,716 | 392,029 | |||||||||||||||
| Summary Performance Ratios: | ||||||||||||||||||||
| Return on average assets (annualized) | 1.07 | % | 1.04 | % | 0.99 | % | 1.27 | % | 2.97 | % | ||||||||||
| Return on average equity (annualized) | 10.83 | % | 10.72 | % | 10.52 | % | 14.01 | % | 31.33 | % | ||||||||||
| Net interest margin (1) | 3.63 | % | 3.56 | % | 3.52 | % | 3.52 | % | 3.65 | % | ||||||||||
| Yield on loans | 6.60 | % | 6.53 | % | 6.29 | % | 6.10 | % | 5.94 | % | ||||||||||
| Cost of interest-bearing deposits | 3.33 | % | 3.27 | % | 3.14 | % | 2.93 | % | 2.45 | % | ||||||||||
| Efficiency ratio | 66.72 | % | 67.94 | % | 68.71 | % | 65.34 | % | 49.39 | % | ||||||||||
| Summary Credit Quality Data: | ||||||||||||||||||||
| Nonperforming loans | 23,452 | 3,380 | 5,178 | 4,783 | 21,039 | |||||||||||||||
| Nonperforming loans to total loans held for investment | 0.76 | % | 0.11 | % | 0.17 | % | 0.16 | % | 0.71 | % | ||||||||||
| Other real estate owned | 755 | 862 | 912 | 242 | 249 | |||||||||||||||
| Nonperforming assets to total assets | 0.57 | % | 0.10 | % | 0.14 | % | 0.12 | % | 0.51 | % | ||||||||||
| Allowance for credit losses to total loans held for investment | 1.40 | % | 1.40 | % | 1.41 | % | 1.41 | % | 1.45 | % | ||||||||||
| Net charge-offs to average loans outstanding (annualized) | 0.10 | % | 0.13 | % | 0.08 | % | 0.05 | % | 0.05 | % | ||||||||||
| As of and for the quarter ended | ||||||||||||||||||||
| June 30 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||||||||||||
| Capital Ratios: | ||||||||||||||||||||
| Total stockholders’ equity to total assets | 9.90 | % | 9.69 | % | 9.68 | % | 8.88 | % | 9.45 | % | ||||||||||
| Tangible common equity to tangible assets (non-GAAP) | 9.44 | % | 9.22 | % | 9.21 | % | 8.40 | % | 8.96 | % | ||||||||||
| Common equity tier 1 to risk-weighted assets | 12.61 | % | 12.67 | % | 12.41 | % | 12.19 | % | 12.11 | % | ||||||||||
| Tier 1 capital to average assets | 11.81 | % | 11.51 | % | 11.33 | % | 11.13 | % | 11.67 | % | ||||||||||
| Total capital to risk-weighted assets | 16.86 | % | 17.00 | % | 16.74 | % | 16.82 | % | 16.75 | % | ||||||||||
(1) Net interest margin is calculated as the annual net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.
| South Plains Financial, Inc. Average Balances and Yields - (Unaudited) (Dollars in thousands) | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| June 30, 2024 | June 30, 2023 | |||||||||||||||||||
| Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | |||||||||||||||
| Assets | ||||||||||||||||||||
| Loans | $ | 3,082,601 | $ | 50,579 | 6.60 | % | $ | 2,894,087 | $ | 42,872 | 5.94 | % | ||||||||
| Debt securities - taxable | 533,553 | 5,285 | 3.98 | % | 575,983 | 5,365 | 3.74 | % | ||||||||||||
| Debt securities - nontaxable | 155,408 | 1,022 | 2.64 | % | 210,709 | 1,403 | 2.67 | % | ||||||||||||
| Other interest-bearing assets | 225,720 | 2,545 | 4.53 | % | 149,996 | 1,484 | 3.97 | % | ||||||||||||
| Total interest-earning assets | 3,997,282 | 59,431 | 5.98 | % | 3,830,775 | 51,124 | 5.35 | % | ||||||||||||
| Noninterest-earning assets | 171,472 | 182,752 | ||||||||||||||||||
| Total assets | $ | 4,168,754 | $ | 4,013,527 | ||||||||||||||||
| Liabilities & stockholders’ equity | ||||||||||||||||||||
| NOW, Savings, MMDA’s | $ | 2,221,427 | 17,652 | 3.20 | % | $ | 2,059,182 | 12,484 | 2.43 | % | ||||||||||
| Time deposits | 392,778 | 3,977 | 4.07 | % | 299,358 | 1,949 | 2.61 | % | ||||||||||||
| Short-term borrowings | 3 | - | 0.00 | % | 325 | 5 | 6.17 | % | ||||||||||||
| Notes payable & other long-term borrowings | - | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||
| Subordinated debt | 63,845 | 835 | 5.26 | % | 76,031 | 1,013 | 5.34 | % | ||||||||||||
| Junior subordinated deferrable interest debentures | 46,393 | 856 | 7.42 | % | 46,393 | 789 | 6.82 | % | ||||||||||||
| Total interest-bearing liabilities | 2,724,446 | 23,320 | 3.44 | % | 2,481,289 | 16,240 | 2.63 | % | ||||||||||||
| Demand deposits | 960,106 | 1,075,514 | ||||||||||||||||||
| Other liabilities | 70,854 | 76,727 | ||||||||||||||||||
| Stockholders’ equity | 413,348 | 379,997 | ||||||||||||||||||
| Total liabilities & stockholders’ equity | $ | 4,168,754 | $ | 4,013,527 | ||||||||||||||||
| Net interest income | $ | 36,111 | $ | 34,884 | ||||||||||||||||
| Net interest margin (2) | 3.63 | % | 3.65 | % | ||||||||||||||||
(1) Average loan balances include nonaccrual loans and loans held for sale.
(2) Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.
| South Plains Financial, Inc. Consolidated Balance Sheets (Unaudited) (Dollars in thousands) | ||||||||
| As of | ||||||||
| June 30, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Cash and due from banks | $ | 46,024 | $ | 62,821 | ||||
| Interest-bearing deposits in banks | 251,982 | 267,337 | ||||||
| Securities available for sale | 591,031 | 622,762 | ||||||
| Loans held for sale | 16,585 | 14,499 | ||||||
| Loans held for investment | 3,094,273 | 3,014,153 | ||||||
| Less: Allowance for credit losses | (43,173 | ) | (42,356 | ) | ||||
| Net loans held for investment | 3,051,100 | 2,971,797 | ||||||
| Premises and equipment, net | 53,952 | 55,070 | ||||||
| Goodwill | 19,315 | 19,315 | ||||||
| Intangible assets | 2,064 | 2,429 | ||||||
| Mortgage servicing rights | 26,426 | 26,569 | ||||||
| Other assets | 162,457 | 162,194 | ||||||
| Total assets | $ | 4,220,936 | $ | 4,204,793 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Noninterest-bearing deposits | $ | 951,565 | $ | 974,201 | ||||
| Interest-bearing deposits | 2,672,948 | 2,651,952 | ||||||
| Total deposits | 3,624,513 | 3,626,153 | ||||||
| Subordinated debt | 63,868 | 63,775 | ||||||
| Junior subordinated deferrable interest debentures | 46,393 | 46,393 | ||||||
| Other liabilities | 68,177 | 61,358 | ||||||
| Total liabilities | 3,802,951 | 3,797,679 | ||||||
| Stockholders’ Equity | ||||||||
| Common stock | 16,424 | 16,417 | ||||||
| Additional paid-in capital | 97,766 | 97,107 | ||||||
| Retained earnings | 362,855 | 345,264 | ||||||
| Accumulated other comprehensive income (loss) | (59,060 | ) | (51,674 | ) | ||||
| Total stockholders’ equity | 417,985 | 407,114 | ||||||
| Total liabilities and stockholders’ equity | $ | 4,220,936 | $ | 4,204,793 | ||||
| South Plains Financial, Inc. Consolidated Statements of Income (Unaudited) (Dollars in thousands) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||
| Interest income: | ||||||||||||
| Loans, including fees | $ | 50,571 | $ | 42,864 | $ | 99,503 | $ | 82,461 | ||||
| Other | 8,637 | 7,957 | 18,432 | 15,808 | ||||||||
| Total interest income | 59,208 | 50,821 | 117,935 | 98,269 | ||||||||
| Interest expense: | ||||||||||||
| Deposits | 21,629 | 14,433 | 43,292 | 25,803 | ||||||||
| Subordinated debt | 835 | 1,013 | 1,670 | 2,025 | ||||||||
| Junior subordinated deferrable interest debentures | 856 | 789 | 1,717 | 1,540 | ||||||||
| Other | - | 5 | - | 5 | ||||||||
| Total interest expense | 23,320 | 16,240 | 46,679 | 29,373 | ||||||||
| Net interest income | 35,888 | 34,581 | 71,256 | 68,896 | ||||||||
| Provision for credit losses | 1,775 | 3,700 | 2,605 | 4,710 | ||||||||
| Net interest income after provision for credit losses | 34,113 | 30,881 | 68,651 | 64,186 | ||||||||
| Noninterest income: | ||||||||||||
| Service charges on deposits | 1,949 | 1,745 | 3,762 | 3,446 | ||||||||
| Income from insurance activities | 30 | 37 | 64 | 1,448 | ||||||||
| Mortgage banking activities | 3,397 | 5,258 | 7,342 | 7,544 | ||||||||
| Bank card services and interchange fees | 4,052 | 4,043 | 7,113 | 6,999 | ||||||||
| Gain on sale of subsidiary | — | 33,488 | — | 33,488 | ||||||||
| Other | 3,281 | 2,541 | 5,837 | 4,878 | ||||||||
| Total noninterest income | 12,709 | 47,112 | 24,118 | 57,803 | ||||||||
| Noninterest expense: | ||||||||||||
| Salaries and employee benefits | 19,199 | 23,437 | 38,187 | 42,691 | ||||||||
| Net occupancy expense | 4,029 | 4,303 | 7,949 | 8,135 | ||||||||
| Professional services | 1,738 | 1,716 | 3,221 | 3,364 | ||||||||
| Marketing and development | 860 | 784 | 1,614 | 1,720 | ||||||||
| Other | 6,746 | 10,259 | 13,531 | 16,950 | ||||||||
| Total noninterest expense | 32,572 | 40,499 | 64,502 | 72,860 | ||||||||
| Income before income taxes | 14,250 | 37,494 | 28,267 | 49,129 | ||||||||
| Income tax expense | 3,116 | 7,811 | 6,259 | 10,202 | ||||||||
| Net income | $ | 11,134 | $ | 29,683 | $ | 22,008 | $ | 38,927 | ||||
| South Plains Financial, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in thousands) | |||||||||||||||
| For the quarter ended | |||||||||||||||
| June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |||||||||||
| Pre-tax, pre-provision income | |||||||||||||||
| Net income | $ | 11,134 | $ | 10,874 | $ | 10,324 | $ | 13,494 | $ | 29,683 | |||||
| Income tax expense | 3,116 | 3,143 | 2,787 | 3,683 | 7,811 | ||||||||||
| Provision for credit losses | 1,775 | 830 | 600 | (700) | 3,700 | ||||||||||
| Pre-tax, pre-provision income | $ | 16,025 | $ | 14,847 | $ | 13,711 | $ | 16,477 | $ | 41,194 | |||||
| Efficiency Ratio | |||||||||||||||
| Noninterest expense | $ | 32,572 | $ | 31,930 | $ | 30,597 | $ | 31,489 | $ | 40,499 | |||||
| Net interest income | 35,888 | 35,368 | 35,162 | 35,689 | 34,581 | ||||||||||
| Tax equivalent yield adjustment | 223 | 223 | 225 | 229 | 303 | ||||||||||
| Noninterest income | 12,709 | 11,409 | 9,146 | 12,277 | 47,112 | ||||||||||
| Total income | 48,820 | 47,000 | 44,533 | 48,195 | 81,996 | ||||||||||
| Efficiency ratio | |||||||||||||||
| Noninterest expense | $ | 32,572 | $ | 31,930 | $ | 30,597 | $ | 31,489 | $ | 40,499 | |||||
| Less: Subsidiary transaction and related expenses | — | — | — | — | (4,532) | ||||||||||
| Less: net loss on sale of securities | — | — | — | — | (3,409) | ||||||||||
| Adjusted noninterest expense | 32,572 | 31,930 | 30,597 | 31,489 | 32,558 | ||||||||||
| Total income | 48,820 | 47,000 | 44,533 | 48,195 | 81,996 | ||||||||||
| Less: gain on sale of subsidiary | — | — | — | (290) | (33,488) | ||||||||||
| Adjusted total income | 48,820 | 47,000 | 44,533 | 47,905 | 48,508 | ||||||||||
| Adjusted efficiency ratio |
| As of | |||||||||||||||
| June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |||||||||||
| Tangible common equity | |||||||||||||||
| Total common stockholders’ equity | $ | 417,985 | $ | 408,712 | $ | 407,114 | $ | 371,716 | $ | 392,029 | |||||
| Less: goodwill and other intangibles | (21,379) | (21,562) | (21,744) | (21,936) | (22,149) | ||||||||||
| Tangible common equity | $ | 396,606 | $ | 387,150 | $ | 385,370 | $ | 349,780 | $ | 369,880 | |||||
| Tangible assets | |||||||||||||||
| Total assets | $ | 4,220,936 | $ | 4,218,993 | $ | 4,204,793 | $ | 4,186,440 | $ | 4,150,129 | |||||
| Less: goodwill and other intangibles | (21,379) | (21,562) | (21,744) | (21,936) | (22,149) | ||||||||||
| Tangible assets | $ | 4,199,557 | $ | 4,197,431 | $ | 4,183,049 | $ | 4,164,504 | $ | 4,127,980 | |||||
| Shares outstanding | 16,424,021 | 16,431,755 | 16,417,099 | 16,600,442 | 16,952,072 | ||||||||||
| Total stockholders’ equity to total assets | |||||||||||||||
| Tangible common equity to tangible assets | |||||||||||||||
| Book value per share | $ | 25.45 | $ | 24.87 | $ | 24.80 | $ | 22.39 | $ | 23.13 | |||||
| Tangible book value per share | $ | 24.15 | $ | 23.56 | $ | 23.47 | $ | 21.07 | $ | 21.82 | |||||
FAQ
What was South Plains Financial's (SPFI) net income for Q2 2024?
How did SPFI's diluted earnings per share (EPS) change in Q2 2024?
What was the net interest margin for SPFI in Q2 2024?
How much did SPFI's loans held for investment grow in Q2 2024?
What was SPFI's tangible book value per share as of June 30, 2024?
