South Plains Financial, Inc. Reports Third Quarter 2024 Financial Results
South Plains Financial (NASDAQ:SPFI) reported third quarter 2024 financial results with net income of $11.2 million, slightly up from $11.1 million in Q2 2024 but down from $13.5 million in Q3 2023. Diluted EPS remained stable at $0.66 compared to Q2 2024. The company's net interest margin improved to 3.65%, while deposits increased by $94.8 million to $3.72 billion. Nonperforming assets to total assets were 0.59%. The loan portfolio decreased by $56.9 million to $3.04 billion, while the allowance for credit losses ratio stood at 1.41%. Book value per share increased to $27.04, driven by net income and improved accumulated other comprehensive income.
South Plains Financial (NASDAQ:SPFI) ha riportato i risultati finanziari del terzo trimestre 2024 con un utile netto di 11,2 milioni di dollari, leggermente aumentato rispetto agli 11,1 milioni di dollari del secondo trimestre 2024, ma in calo rispetto ai 13,5 milioni di dollari del terzo trimestre 2023. L'EPS diluito è rimasto stabile a 0,66 dollari rispetto al secondo trimestre 2024. Il margine di interesse netto dell'azienda è migliorato al 3,65%, mentre i depositi sono aumentati di 94,8 milioni di dollari, raggiungendo i 3,72 miliardi di dollari. Le attività non performanti rispetto alle attività totali erano dello 0,59%. Il portafoglio prestiti è diminuito di 56,9 milioni di dollari, attestandosi a 3,04 miliardi di dollari, mentre il rapporto di accantonamento per perdite su crediti si è fermato all'1,41%. Il valore contabile per azione è aumentato a 27,04 dollari, sostenuto dall'utile netto e da un miglioramento dell'utile complessivo accumulato.
South Plains Financial (NASDAQ:SPFI) reportó los resultados financieros del tercer trimestre de 2024 con una utilidad neta de 11,2 millones de dólares, ligeramente por encima de los 11,1 millones de dólares en el segundo trimestre de 2024, pero por debajo de los 13,5 millones de dólares en el tercer trimestre de 2023. El EPS diluido se mantuvo estable en 0,66 dólares en comparación con el segundo trimestre de 2024. El margen de interés neto de la compañía mejoró al 3,65%, mientras que los depósitos aumentaron en 94,8 millones de dólares, alcanzando los 3,72 mil millones de dólares. Los activos no rentables representaron el 0,59% de los activos totales. La cartera de préstamos disminuyó en 56,9 millones de dólares, hasta 3,04 mil millones de dólares, y la relación de provisión para pérdidas crediticias se situó en el 1,41%. El valor en libros por acción aumentó a 27,04 dólares, impulsado por la utilidad neta y la mejora de otros ingresos integrales acumulados.
South Plains Financial (NASDAQ:SPFI)는 2024년 3분기 재무 결과를 발표하였으며, 순이익은 1,120만 달러로 2024년 2분기의 1,110만 달러에서 소폭 증가하였으나, 2023년 3분기의 1,350만 달러에서 감소하였습니다. 희석 EPS는 0.66 달러로 2024년 2분기와 동일하게 유지되었습니다. 회사의 순이자 마진은 3.65%로 개선되었으며, 예금은 9,480만 달러 증가하여 37억 2천만 달러에 달했습니다. 비수익 자산 비율은 총 자산의 0.59%였습니다. 대출 포트폴리오는 5,690만 달러 감소하여 30억 4천만 달러에 이르렀고, 대손충당금 비율은 1.41%에 달했습니다. 주당 장부 가치는 순이익과 개선된 누적 기타 포괄 손익에 힘입어 27.04 달러로 증가했습니다.
South Plains Financial (NASDAQ:SPFI) a annoncé ses résultats financiers pour le troisième trimestre 2024 avec un bénéfice net de 11,2 millions de dollars, légèrement en hausse par rapport à 11,1 millions de dollars au deuxième trimestre 2024, mais en baisse par rapport à 13,5 millions de dollars au troisième trimestre 2023. Le BPA dilué est resté stable à 0,66 dollar par rapport au deuxième trimestre 2024. La marge d'intérêt nette de l'entreprise s'est améliorée à 3,65%, tandis que les dépôts ont augmenté de 94,8 millions de dollars pour atteindre 3,72 milliards de dollars. Les actifs non performants représentaient 0,59% des actifs totaux. Le portefeuille de prêts a diminué de 56,9 millions de dollars pour atteindre 3,04 milliards de dollars, tandis que le ratio de provisions pour pertes sur créances s'est établi à 1,41%. La valeur comptable par action a augmenté à 27,04 dollars, portée par le bénéfice net et l'amélioration des autres produits globaux cumulés.
South Plains Financial (NASDAQ:SPFI) berichtete über die Finanzergebnisse des dritten Quartals 2024 mit einem Nettogewinn von 11,2 Millionen Dollar, leicht gestiegen von 11,1 Millionen Dollar im zweiten Quartal 2024, jedoch rückläufig im Vergleich zu 13,5 Millionen Dollar im dritten Quartal 2023. Der verwässerte Gewinn je Aktie blieb stabil bei 0,66 Dollar im Vergleich zum zweiten Quartal 2024. Die Nettozinsmarge des Unternehmens verbesserte sich auf 3,65%, während die Einlagen um 94,8 Millionen Dollar auf 3,72 Milliarden Dollar anstiegen. Die Problemkredite machten 0,59% der Gesamtkapitalien aus. Das Kreditportfolio verringerte sich um 56,9 Millionen Dollar auf 3,04 Milliarden Dollar, während das Verhältnis der Rückstellungen für Kreditverluste bei 1,41% lag. Der Buchwert pro Aktie stieg auf 27,04 Dollar, gestützt durch den Nettogewinn und verbesserte kumulierte andere umfassende Erträge.
- Net income increased quarter-over-quarter from $11.1M to $11.2M
- Net interest margin improved to 3.65% from 3.63% in Q2 2024
- Deposits grew by $94.8M (2.6%) to $3.72B
- Book value per share increased to $27.04 from $25.45
- Strong capital ratios with total risk-based capital at 17.61%
- Net income decreased year-over-year from $13.5M to $11.2M
- Loan portfolio decreased by $56.9M (1.8%) quarter-over-quarter
- Nonperforming assets ratio increased to 0.59% from 0.12% year-over-year
- Average cost of deposits increased to 247 basis points from 207 basis points year-over-year
- Noninterest income decreased by $2.1M from Q2 2024
Insights
South Plains Financial delivered relatively stable Q3 2024 results with
Key positives include:
- Strong capital ratios well above "well-capitalized" levels
- Improved net interest income at
$37.3 million - Healthy loan portfolio with manageable NPAs at
0.59%
- Declining noninterest income
- Increased noninterest expenses
- Slight compression in ROA to
1.05%
LUBBOCK, Texas, Oct. 23, 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 September 30, 2024.
Third Quarter 2024 Highlights
- Net income for the third quarter of 2024 was
$11.2 million , compared to$11.1 million for the second quarter of 2024 and$13.5 million for the third quarter of 2023. - Diluted earnings per share for the third quarter of 2024 was
$0.66 , compared to$0.66 for the second quarter of 2024 and$0.78 for the third quarter of 2023. - Average cost of deposits for the third quarter of 2024 was 247 basis points, compared to 243 basis points for the second quarter of 2024 and 207 basis points for the third quarter of 2023.
- Net interest margin, calculated on a tax-equivalent basis, was
3.65% for the third quarter of 2024, compared to3.63% for the second quarter of 2024 and3.52% for the third quarter of 2023. - Nonperforming assets to total assets were
0.59% at September 30, 2024, compared to0.57% at June 30, 2024 and0.12% at September 30, 2023. - Return on average assets for the third quarter of 2024 was
1.05% annualized, compared to1.07% annualized for the second quarter of 2024 and1.27% annualized for the third quarter of 2023. - Tangible book value (non-GAAP) per share was
$25.75 as of September 30, 2024, compared to$24.15 as of June 30, 2024 and$21.07 as of September 30, 2023. - The consolidated total risk-based capital ratio, Common Equity Tier 1 risk-based capital ratio, and Tier 1 leverage ratio at September 30, 2024 were
17.61% ,13.25% , and11.76% , 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, “I’m pleased with our third quarter results, which I believe demonstrate that the Bank is performing at a high level. We remain well capitalized and focused on managing our loan portfolio as the credit environment continues to normalize. Against this backdrop, we are maintaining our credit discipline and not stretching to chase loan growth. We are also building liquidity as we expect the Federal Reserve to continue reducing their market interest rate to stimulate economic growth looking to the year ahead. Importantly, we are seeing a level of optimism from our customers that we have not seen over the last seven to eight quarters and our new business production pipeline is the strongest that it has been in more than two years. Looking forward, we remain confident in the credit profile of our loan portfolio and are cautiously optimistic that we will see loan growth accelerate in the quarters ahead. Additionally, we are beginning to see deposit cost pressures ease, which we expect will be supportive of our net interest margin as well as continued deposit growth.”
Results of Operations, Quarter Ended September 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 third 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 third quarter 2024 financial results today, October 23, 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 13749147. The replay will be available until November 6, 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 the current elevated interest rate environment or future reductions in interest rates and a resulting decline in net interest income; the resurgence of elevated levels of inflation or inflationary pressures, 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, deficit 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; the impact of changes in U.S. presidential administrations or Congress; 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 | |||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||
| Selected Income Statement Data: | |||||||||||||||||||
| Interest income | $ | 61,640 | $ | 59,208 | $ | 58,727 | $ | 57,236 | $ | 56,528 | |||||||||
| Interest expense | 24,346 | 23,320 | 23,359 | 22,074 | 20,839 | ||||||||||||||
| Net interest income | 37,294 | 35,888 | 35,368 | 35,162 | 35,689 | ||||||||||||||
| Provision for credit losses | 495 | 1,775 | 830 | 600 | (700 | ) | |||||||||||||
| Noninterest income | 10,635 | 12,709 | 11,409 | 9,146 | 12,277 | ||||||||||||||
| Noninterest expense | 33,128 | 32,572 | 31,930 | 30,597 | 31,489 | ||||||||||||||
| Income tax expense | 3,094 | 3,116 | 3,143 | 2,787 | 3,683 | ||||||||||||||
| Net income | 11,212 | 11,134 | 10,874 | 10,324 | 13,494 | ||||||||||||||
| Per Share Data (Common Stock): | |||||||||||||||||||
| Net earnings, basic | $ | 0.68 | $ | 0.68 | $ | 0.66 | $ | 0.63 | $ | 0.80 | |||||||||
| Net earnings, diluted | 0.66 | 0.66 | 0.64 | 0.61 | 0.78 | ||||||||||||||
| Cash dividends declared and paid | 0.14 | 0.14 | 0.13 | 0.13 | 0.13 | ||||||||||||||
| Book value | 27.04 | 25.45 | 24.87 | 24.80 | 22.39 | ||||||||||||||
| Tangible book value (non-GAAP) | 25.75 | 24.15 | 23.56 | 23.47 | 21.07 | ||||||||||||||
| Weighted average shares outstanding, basic | 16,386,079 | 16,425,360 | 16,429,919 | 16,443,908 | 16,842,594 | ||||||||||||||
| Weighted average shares outstanding, dilutive | 17,056,959 | 16,932,077 | 16,938,857 | 17,008,892 | 17,354,182 | ||||||||||||||
| Shares outstanding at end of period | 16,386,627 | 16,424,021 | 16,431,755 | 16,417,099 | 16,600,442 | ||||||||||||||
| Selected Period End Balance Sheet Data: | |||||||||||||||||||
| Cash and cash equivalents | $ | 471,167 | $ | 298,006 | $ | 371,939 | $ | 330,158 | $ | 352,424 | |||||||||
| Investment securities | 606,889 | 591,031 | 599,869 | 622,762 | 584,969 | ||||||||||||||
| Total loans held for investment | 3,037,375 | 3,094,273 | 3,011,799 | 3,014,153 | 2,993,563 | ||||||||||||||
| Allowance for credit losses | 42,886 | 43,173 | 42,174 | 42,356 | 42,075 | ||||||||||||||
| Total assets | 4,337,659 | 4,220,936 | 4,218,993 | 4,204,793 | 4,186,440 | ||||||||||||||
| Interest-bearing deposits | 2,720,880 | 2,672,948 | 2,664,397 | 2,651,952 | 2,574,361 | ||||||||||||||
| Noninterest-bearing deposits | 998,480 | 951,565 | 974,174 | 974,201 | 1,046,253 | ||||||||||||||
| Total deposits | 3,719,360 | 3,624,513 | 3,638,571 | 3,626,153 | 3,620,614 | ||||||||||||||
| Borrowings | 110,307 | 110,261 | 110,214 | 110,168 | 122,493 | ||||||||||||||
| Total stockholders’ equity | 443,122 | 417,985 | 408,712 | 407,114 | 371,716 | ||||||||||||||
| Summary Performance Ratios: | |||||||||||||||||||
| Return on average assets (annualized) | 1.05 | % | 1.07 | % | 1.04 | % | 0.99 | % | 1.27 | % | |||||||||
| Return on average equity (annualized) | 10.36 | % | 10.83 | % | 10.72 | % | 10.52 | % | 14.01 | % | |||||||||
| Net interest margin (1) | 3.65 | % | 3.63 | % | 3.56 | % | 3.52 | % | 3.52 | % | |||||||||
| Yield on loans | 6.68 | % | 6.60 | % | 6.53 | % | 6.29 | % | 6.10 | % | |||||||||
| Cost of interest-bearing deposits | 3.36 | % | 3.33 | % | 3.27 | % | 3.14 | % | 2.93 | % | |||||||||
| Efficiency ratio | 68.80 | % | 66.72 | % | 67.94 | % | 68.71 | % | 65.34 | % | |||||||||
| Summary Credit Quality Data: | |||||||||||||||||||
| Nonperforming loans | $ | 24,693 | $ | 23,452 | $ | 3,380 | $ | 5,178 | $ | 4,783 | |||||||||
| Nonperforming loans to total loans held for investment | 0.81 | % | 0.76 | % | 0.11 | % | 0.17 | % | 0.16 | % | |||||||||
| Other real estate owned | 973 | 755 | 862 | 912 | 242 | ||||||||||||||
| Nonperforming assets to total assets | 0.59 | % | 0.57 | % | 0.10 | % | 0.14 | % | 0.12 | % | |||||||||
| Allowance for credit losses to total loans held for investment | 1.41 | % | 1.40 | % | 1.40 | % | 1.41 | % | 1.41 | % | |||||||||
| Net charge-offs to average loans outstanding (annualized) | 0.11 | % | 0.10 | % | 0.13 | % | 0.08 | % | 0.05 | % | |||||||||
| As of and for the quarter ended | |||||||||||||||||||
| September 30 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||
| Capital Ratios: | |||||||||||||||||||
| Total stockholders’ equity to total assets | 10.22 | % | 9.90 | % | 9.69 | % | 9.68 | % | 8.88 | % | |||||||||
| Tangible common equity to tangible assets (non-GAAP) | 9.77 | % | 9.44 | % | 9.22 | % | 9.21 | % | 8.40 | % | |||||||||
| Common equity tier 1 to risk-weighted assets | 13.25 | % | 12.61 | % | 12.67 | % | 12.41 | % | 12.19 | % | |||||||||
| Tier 1 capital to average assets | 11.76 | % | 11.81 | % | 11.51 | % | 11.33 | % | 11.13 | % | |||||||||
| Total capital to risk-weighted assets | 17.61 | % | 16.86 | % | 17.00 | % | 16.74 | % | 16.82 | % | |||||||||
(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 | |||||||||||||||||||
| September 30, 2024 | September 30, 2023 | ||||||||||||||||||
| Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | ||||||||||||||
| Assets | |||||||||||||||||||
| Loans | $ | 3,069,900 | $ | 51,513 | 6.68 | % | $ | 3,005,699 | $ | 46,250 | 6.10 | % | |||||||
| Debt securities - taxable | 524,641 | 5,300 | 4.02 | % | 561,068 | 5,422 | 3.83 | % | |||||||||||
| Debt securities - nontaxable | 154,806 | 1,016 | 2.61 | % | 159,577 | 1,054 | 2.62 | % | |||||||||||
| Other interest-bearing assets | 336,887 | 4,032 | 4.76 | % | 325,201 | 4,031 | 4.92 | % | |||||||||||
| Total interest-earning assets | 4,086,234 | 61,861 | 6.02 | % | 4,051,545 | 56,757 | 5.56 | % | |||||||||||
| Noninterest-earning assets | 172,922 | 177,216 | |||||||||||||||||
| Total assets | $ | 4,259,156 | $ | 4,228,761 | |||||||||||||||
| Liabilities & stockholders’ equity | |||||||||||||||||||
| NOW, Savings, MMDA’s | $ | 2,247,299 | 18,143 | 3.21 | % | $ | 2,223,014 | 16,061 | 2.87 | % | |||||||||
| Time deposits | 431,307 | 4,510 | 4.16 | % | 344,395 | 2,904 | 3.35 | % | |||||||||||
| Short-term borrowings | 3 | - | 0.00 | % | 3 | - | 0.00 | % | |||||||||||
| Notes payable & other long-term borrowings | - | - | 0.00 | % | - | - | 0.00 | % | |||||||||||
| Subordinated debt | 63,891 | 835 | 5.20 | % | 76,077 | 1,012 | 5.28 | % | |||||||||||
| Junior subordinated deferrable interest debentures | 46,393 | 858 | 7.36 | % | 46,393 | 862 | 7.37 | % | |||||||||||
| Total interest-bearing liabilities | 2,788,893 | 24,346 | 3.47 | % | 2,689,882 | 20,839 | 3.07 | % | |||||||||||
| Demand deposits | 976,048 | 1,071,175 | |||||||||||||||||
| Other liabilities | 63,661 | 85,713 | |||||||||||||||||
| Stockholders’ equity | 430,554 | 381,991 | |||||||||||||||||
| Total liabilities & stockholders’ equity | $ | 4,259,156 | $ | 4,228,761 | |||||||||||||||
| Net interest income | $ | 37,515 | $ | 35,918 | |||||||||||||||
| Net interest margin (2) | 3.65 | % | 3.52 | % | |||||||||||||||
(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. Average Balances and Yields - (Unaudited) (Dollars in thousands) | |||||||||||||||||||
| For the Nine Months Ended | |||||||||||||||||||
| September 30, 2024 | September 30, 2023 | ||||||||||||||||||
| Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | ||||||||||||||
| Assets | |||||||||||||||||||
| Loans | $ | 3,055,679 | $ | 151,031 | 6.60 | % | $ | 2,892,887 | $ | 128,724 | 5.95 | % | |||||||
| Debt securities - taxable | 537,425 | 16,096 | 4.00 | % | 574,159 | 16,027 | 3.73 | % | |||||||||||
| Debt securities - nontaxable | 155,489 | 3,062 | 2.63 | % | 194,492 | 3,870 | 2.66 | % | |||||||||||
| Other interest-bearing assets | 287,192 | 10,052 | 4.68 | % | 212,384 | 7,010 | 4.41 | % | |||||||||||
| Total interest-earning assets | 4,035,785 | 180,241 | 5.97 | % | 3,873,922 | 155,631 | 5.37 | % | |||||||||||
| Noninterest-earning assets | 176,230 | 183,149 | |||||||||||||||||
| Total assets | $ | 4,212,015 | $ | 4,057,071 | |||||||||||||||
| Liabilities & stockholders’ equity | |||||||||||||||||||
| NOW, Savings, MMDA’s | $ | 2,251,569 | 53,792 | 3.19 | % | $ | 2,090,250 | 38,529 | 2.46 | % | |||||||||
| Time deposits | 399,646 | 12,153 | 4.06 | % | 309,250 | 6,239 | 2.70 | % | |||||||||||
| Short-term borrowings | 3 | - | 0.00 | % | 111 | 5 | 6.02 | % | |||||||||||
| Notes payable & other long-term borrowings | - | - | 0.00 | % | - | - | 0.00 | % | |||||||||||
| Subordinated debt | 63,845 | 2,505 | 5.24 | % | 76,031 | 3,037 | 5.34 | % | |||||||||||
| Junior subordinated deferrable interest debentures | 46,393 | 2,575 | 7.41 | % | 46,393 | 2,402 | 6.92 | % | |||||||||||
| Total interest-bearing liabilities | 2,761,456 | 71,025 | 3.44 | % | 2,522,035 | 50,212 | 2.66 | % | |||||||||||
| Demand deposits | 964,829 | 1,085,345 | |||||||||||||||||
| Other liabilities | 68,458 | 74,865 | |||||||||||||||||
| Stockholders’ equity | 417,272 | 374,826 | |||||||||||||||||
| Total liabilities & stockholders’ equity | $ | 4,212,015 | $ | 4,057,071 | |||||||||||||||
| Net interest income | $ | 109,216 | $ | 105,419 | |||||||||||||||
| Net interest margin (2) | 3.61 | % | 3.64 | % | |||||||||||||||
(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 | |||||||
| September 30, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Cash and due from banks | $ | 60,863 | $ | 62,821 | |||
| Interest-bearing deposits in banks | 410,304 | 267,337 | |||||
| Securities available for sale | 606,889 | 622,762 | |||||
| Loans held for sale | 11,389 | 14,499 | |||||
| Loans held for investment | 3,037,375 | 3,014,153 | |||||
| Less: Allowance for credit losses | (42,886 | ) | (42,356 | ) | |||
| Net loans held for investment | 2,994,489 | 2,971,797 | |||||
| Premises and equipment, net | 53,323 | 55,070 | |||||
| Goodwill | 19,315 | 19,315 | |||||
| Intangible assets | 1,882 | 2,429 | |||||
| Mortgage servicing rights | 24,573 | 26,569 | |||||
| Other assets | 154,632 | 162,194 | |||||
| Total assets | $ | 4,337,659 | $ | 4,204,793 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Noninterest-bearing deposits | $ | 998,480 | $ | 974,201 | |||
| Interest-bearing deposits | 2,720,880 | 2,651,952 | |||||
| Total deposits | 3,719,360 | 3,626,153 | |||||
| Subordinated debt | 63,914 | 63,775 | |||||
| Junior subordinated deferrable interest debentures | 46,393 | 46,393 | |||||
| Other liabilities | 64,870 | 61,358 | |||||
| Total liabilities | 3,894,537 | 3,797,679 | |||||
| Stockholders’ Equity | |||||||
| Common stock | 16,386 | 16,417 | |||||
| Additional paid-in capital | 97,367 | 97,107 | |||||
| Retained earnings | 371,782 | 345,264 | |||||
| Accumulated other comprehensive income (loss) | (42,413 | ) | (51,674 | ) | |||
| Total stockholders’ equity | 443,122 | 407,114 | |||||
| Total liabilities and stockholders’ equity | $ | 4,337,659 | $ | 4,204,793 | |||
| South Plains Financial, Inc. Consolidated Statements of Income (Unaudited) (Dollars in thousands) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||
| Interest income: | ||||||||||||
| Loans, including fees | $ | 51,505 | $ | 46,242 | $ | 151,008 | $ | 128,703 | ||||
| Other | 10,135 | 10,286 | 28,567 | 26,094 | ||||||||
| Total interest income | 61,640 | 56,528 | 179,575 | 154,797 | ||||||||
| Interest expense: | ||||||||||||
| Deposits | 22,653 | 18,965 | 65,945 | 44,768 | ||||||||
| Subordinated debt | 835 | 1,012 | 2,505 | 3,037 | ||||||||
| Junior subordinated deferrable interest debentures | 858 | 862 | 2,575 | 2,402 | ||||||||
| Other | - | - | - | 5 | ||||||||
| Total interest expense | 24,346 | 20,839 | 71,025 | 50,212 | ||||||||
| Net interest income | 37,294 | 35,689 | 108,550 | 104,585 | ||||||||
| Provision for credit losses | 495 | (700 | ) | 3,100 | 4,010 | |||||||
| Net interest income after provision for credit losses | 36,799 | 36,389 | 105,450 | 100,575 | ||||||||
| Noninterest income: | ||||||||||||
| Service charges on deposits | 2,023 | 1,840 | 5,785 | 5,286 | ||||||||
| Income from insurance activities | 28 | 30 | 92 | 1,478 | ||||||||
| Mortgage banking activities | 1,890 | 4,602 | 9,232 | 12,146 | ||||||||
| Bank card services and interchange fees | 3,302 | 3,157 | 10,415 | 10,156 | ||||||||
| Gain on sale of subsidiary | — | 290 | — | 33,778 | ||||||||
| Other | 3,392 | 2,358 | 9,229 | 7,236 | ||||||||
| Total noninterest income | 10,635 | 12,277 | 34,753 | 70,080 | ||||||||
| Noninterest expense: | ||||||||||||
| Salaries and employee benefits | 18,767 | 18,709 | 56,954 | 61,400 | ||||||||
| Net occupancy expense | 4,255 | 4,111 | 12,204 | 12,246 | ||||||||
| Professional services | 1,807 | 1,560 | 5,028 | 4,924 | ||||||||
| Marketing and development | 1,015 | 853 | 2,629 | 2,573 | ||||||||
| Other | 7,284 | 6,256 | 20,815 | 23,206 | ||||||||
| Total noninterest expense | 33,128 | 31,489 | 97,630 | 104,349 | ||||||||
| Income before income taxes | 14,306 | 17,177 | 42,573 | 66,306 | ||||||||
| Income tax expense | 3,094 | 3,683 | 9,353 | 13,885 | ||||||||
| Net income | $ | 11,212 | $ | 13,494 | $ | 33,220 | $ | 52,421 | ||||
| South Plains Financial, Inc. Loan Composition (Unaudited) (Dollars in thousands) | |||||
| As of | |||||
| September 30, 2024 | December 31, 2023 | ||||
| Loans: | |||||
| Commercial Real Estate | $ | 1,120,448 | $ | 1,081,056 | |
| Commercial - Specialized | 406,255 | 372,376 | |||
| Commercial - General | 526,448 | 517,361 | |||
| Consumer: | |||||
| 1-4 Family Residential | 562,401 | 534,731 | |||
| Auto Loans | 253,509 | 305,271 | |||
| Other Consumer | 65,789 | 74,168 | |||
| Construction | 102,525 | 129,190 | |||
| Total loans held for investment | $ | 3,037,375 | $ | 3,014,153 | |
| South Plains Financial, Inc. Deposit Composition (Unaudited) (Dollars in thousands) | |||||
| As of | |||||
| September 30, 2024 | December 31, 2023 | ||||
| Deposits: | |||||
| Noninterest-bearing deposits | $ | 998,480 | $ | 974,201 | |
| NOW & other transaction accounts | 496,176 | 562,066 | |||
| MMDA & other savings | 1,780,337 | 1,722,170 | |||
| Time deposits | 444,367 | 367,716 | |||
| Total deposits | $ | 3,719,360 | $ | 3,626,153 | |
| South Plains Financial, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in thousands) | |||||||||||||||||||
| For the quarter ended | |||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||
| Pre-tax, pre-provision income | |||||||||||||||||||
| Net income | $ | 11,212 | $ | 11,134 | $ | 10,874 | $ | 10,324 | $ | 13,494 | |||||||||
| Income tax expense | 3,094 | 3,116 | 3,143 | 2,787 | 3,683 | ||||||||||||||
| Provision for credit losses | 495 | 1,775 | 830 | 600 | (700 | ) | |||||||||||||
| Pre-tax, pre-provision income | $ | 14,801 | $ | 16,025 | $ | 14,847 | $ | 13,711 | $ | 16,477 | |||||||||
| Efficiency Ratio | |||||||||||||||||||
| Noninterest expense | $ | 33,128 | $ | 32,572 | $ | 31,930 | $ | 30,597 | $ | 31,489 | |||||||||
| Net interest income | 37,294 | 35,888 | 35,368 | 35,162 | 35,689 | ||||||||||||||
| Tax equivalent yield adjustment | 221 | 223 | 223 | 225 | 229 | ||||||||||||||
| Noninterest income | 10,635 | 12,709 | 11,409 | 9,146 | 12,277 | ||||||||||||||
| Total income | 48,150 | 48,820 | 47,000 | 44,533 | 48,195 | ||||||||||||||
| Efficiency ratio | 68.80 | % | 66.72 | % | 67.94 | % | 68.71 | % | 65.34 | % | |||||||||
| Noninterest expense | $ | 33,128 | $ | 32,572 | $ | 31,930 | $ | 30,597 | $ | 31,489 | |||||||||
| Less: Subsidiary transaction and related expenses | — | — | — | — | — | ||||||||||||||
| Less: net loss on sale of securities | — | — | — | — | — | ||||||||||||||
| Adjusted noninterest expense | 33,128 | 32,572 | 31,930 | 30,597 | 31,489 | ||||||||||||||
| Total income | 48,150 | 48,820 | 47,000 | 44,533 | 48,195 | ||||||||||||||
| Less: gain on sale of subsidiary | — | — | — | — | (290 | ) | |||||||||||||
| Adjusted total income | 48,150 | 48,820 | 47,000 | 44,533 | 47,905 | ||||||||||||||
| Adjusted efficiency ratio | 68.80 | % | 66.72 | % | 67.94 | % | 68.71 | % | 65.73 | % | |||||||||
| As of | |||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||
| Tangible common equity | |||||||||||||||||||
| Total common stockholders’ equity | $ | 443,122 | $ | 417,985 | $ | 408,712 | $ | 407,114 | $ | 371,716 | |||||||||
| Less: goodwill and other intangibles | (21,197 | ) | (21,379 | ) | (21,562 | ) | (21,744 | ) | (21,936 | ) | |||||||||
| Tangible common equity | $ | 421,925 | $ | 396,606 | $ | 387,150 | $ | 385,370 | $ | 349,780 | |||||||||
| Tangible assets | |||||||||||||||||||
| Total assets | $ | 4,337,659 | $ | 4,220,936 | $ | 4,218,993 | $ | 4,204,793 | $ | 4,186,440 | |||||||||
| Less: goodwill and other intangibles | (21,197 | ) | (21,379 | ) | (21,562 | ) | (21,744 | ) | (21,936 | ) | |||||||||
| Tangible assets | $ | 4,316,462 | $ | 4,199,557 | $ | 4,197,431 | $ | 4,183,049 | $ | 4,164,504 | |||||||||
| Shares outstanding | 16,386,627 | 16,424,021 | 16,431,755 | 16,417,099 | 16,600,442 | ||||||||||||||
| Total stockholders’ equity to total assets | 10.22 | % | 9.90 | % | 9.69 | % | 9.68 | % | 8.88 | % | |||||||||
| Tangible common equity to tangible assets | 9.77 | % | 9.44 | % | 9.22 | % | 9.21 | % | 8.40 | % | |||||||||
| Book value per share | $ | 27.04 | $ | 25.45 | $ | 24.87 | $ | 24.80 | $ | 22.39 | |||||||||
| Tangible book value per share | $ | 25.75 | $ | 24.15 | $ | 23.56 | $ | 23.47 | $ | 21.07 | |||||||||
FAQ
What was South Plains Financial's (SPFI) earnings per share in Q3 2024?
How much did SPFI's deposits grow in Q3 2024?
What was SPFI's net interest margin in Q3 2024?
What was SPFI's book value per share as of September 30, 2024?
