NASDAQ$SPFI

South Plains Financial Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported financial results for the quarter ended September 30, 2024.

South Plains Financial, Inc. reported net income of $11.2 million for Q3 2024, with diluted earnings per share of $0.66. The company saw an increase in net interest income and remains well-capitalized.

  • Net income for the third quarter of 2024 was $11.2 million.
  • Diluted earnings per share for the third quarter of 2024 was $0.66.
  • Net interest margin was 3.65% for the third quarter of 2024.
  • Nonperforming assets to total assets were 0.59% at September 30, 2024.

Headline financials

Total Revenue

$47.9M

Previous: $48M-0.1%
EPS

$0.66

Previous: $0.78-15.4%
Net Interest Margin

0.0%

Previous: 3.5%-99.0%
Return on Average Assets

0.0%

Previous: 1.3%-99.2%
Return on Average Equity

0.1%

No prior period
Efficiency Ratio

0.7%

No prior period
Nonperforming Assets to Total Assets

0.0%

Previous: 0.1%-95.1%
Allowance for Credit Losses to Total Loans Held for Investment

0.0%

No prior period
Net Charge-offs to Average Loans Outstanding

0.0%

No prior period
Total Stockholders' Equity to Total Assets

0.1%

No prior period
Tangible Common Equity to Tangible Assets

0.1%

No prior period
Common Equity Tier 1 to Risk-Weighted Assets

0.1%

No prior period
Tier 1 Capital to Average Assets

0.1%

No prior period
Total Capital to Risk-Weighted Assets

0.2%

No prior period
Yield on Loans

0.1%

No prior period
Capital Expenditures

-$2.33M

Previous: -$4.68M+50.3%
Free Cash Flow

$8.89M

Previous: $8.81M+0.9%
Net Income

$11.2M

Previous: $13.5M-16.9%
Operating Income

$17.3M

Previous: $20.4M-15.3%
Gross Profit

$47.4M

Previous: $47.3M+0.4%
Stock-Based Comp

$563K

Previous: $511K+10.2%

Revenue & EPS history

South Plains Financial · Revenue · Quarterly

$47.9M

Q3 2024-0.1%vs Q3 2023
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

South Plains Financial · $11M total across 3 segments · Q2 2023

  • Mortgage Banking Activities
    $5.26M-39.3%
  • Bank Card Services and Interchange Fees
    $4.04M+16.2%
  • Service Charges on Deposits
    $1.75M

Forward guidance

South Plains Financial is cautiously optimistic about loan growth acceleration and expects deposit cost pressures to ease, supporting the net interest margin and deposit growth.

Tailwinds

  • The Bank is performing at a high level.
  • The Company remains well capitalized.
  • The Company is focused on managing their loan portfolio as the credit environment continues to normalize.
  • The Company is building liquidity as they expect the Federal Reserve to continue reducing their market interest rate to stimulate economic growth looking to the year ahead.
  • The Company is seeing a level of optimism from their customers that they have not seen over the last seven to eight quarters and their new business production pipeline is the strongest that it has been in more than two years.

Headwinds

  • The Company is maintaining their credit discipline and not stretching to chase loan growth.
  • The Company is exposed to the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto.
  • The Company is exposed to potential recession in the United States and our market areas.
  • The Company is exposed to the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry.
  • The Company is exposed to increased competition for deposits in our market areas and related changes in deposit customer behavior.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.5%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+1.8%

Avg return

30 days after

55%

18 / 33 earnings

Positive

+5.9%

Q1 2021

Best reaction

-8.6%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.0%-9.0%-7.7%
Q4 2025-2.0%+0.8%+3.4%
Q3 2025+0.8%-5.8%-0.5%
Q2 2025-2.4%-0.4%+0.0%
Q1 2025+1.4%+1.4%+4.7%
Q4 2024+5.4%+3.7%-3.1%
Q3 2024-1.6%+0.6%+14.9%
Q2 2024-0.5%+7.5%+2.7%
Q1 2024-3.0%-3.0%+1.4%
Q4 2023+2.0%-4.7%-8.6%
Q3 2023+2.4%+4.2%+5.2%
Q2 2023+3.0%+5.1%+3.2%
Q1 2023+1.6%-0.4%+9.3%
Q4 2022+1.5%+1.2%-3.3%
Q3 2022-0.8%+2.4%+5.4%
Q2 2022+5.5%+6.3%+10.8%
Q1 2022-4.1%-6.0%-6.0%
Q4 2021+0.3%-1.5%-2.2%
Q3 2021+2.6%+4.2%+8.5%
Q2 2021-0.2%-2.5%-2.8%
Q1 2021+5.9%+7.2%+8.8%
Q4 2020-2.9%-2.2%-1.3%
Q3 2020-0.8%+0.9%+29.7%
Q2 2020+5.4%+2.3%+7.7%
Q1 2020-8.6%-10.4%-5.7%
Q4 2018+4.2%-2.4%-22.6%
Q4 2019+4.2%-2.4%-22.6%
Q3 2018+4.6%+9.5%+13.9%
Q3 2019+3.9%+6.1%+17.9%
Q2 2018-5.4%-3.1%+2.4%
Q2 2019+0.1%-1.4%-9.4%
Q1 2018-2.3%-4.4%+2.2%
Q1 2019-2.3%-4.4%+2.2%

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