South Plains Financial Reports Strong Q4 and Year-End Results
South Plains Financial, Inc. Announces Robust Fourth Quarter Results
South Plains Financial, Inc. (NASDAQ: SPFI), the parent company of City Bank, has recently shared its exemplary financial results for the quarter and year ended December 31, 2024. The company showcased significant growth in net income and profitability, reflecting a solid performance amidst a dynamic market environment.
Key Highlights from the Fourth Quarter 2024
During the fourth quarter of 2024, South Plains recorded an impressive net income of $16.5 million, a notable increase from $11.2 million in the third quarter of the same year, and $10.3 million in Q4 2023. This growth has also translated into improved earnings per share, which reached $0.96, compared to $0.66 in the prior quarter and $0.61 a year earlier.
Financial Metrics Overview
The average cost of deposits for Q4 2024 was 229 basis points, showing a decrease from 247 basis points in Q3. Furthermore, the net interest margin on a tax-equivalent basis rose to 3.75%, up from 3.65% in Q3 2024 and 3.52% in Q4 2023.
Return on Assets and Tangible Book Value
In terms of return on average assets, the company achieved an annualized rate of 1.53% for the fourth quarter, significantly higher than 1.05% in the third quarter and 0.99% in the previous year’s quarter. The tangible book value per share as of December 31, 2024, stood at $25.40, slightly down from $25.75 in Q3 but up from $23.47 in Q4 2023.
Full Year 2024 Summary
The complete year 2024 saw South Plains reporting a total net income of $49.7 million, compared to $62.7 million recorded in 2023. The diluted earnings per share for the year were $2.92, down from $3.62 the previous year.
Loan Growth and Asset Composition
Noteworthy is the growth in loans held for investment, which saw an increase of $40.9 million, marking a growth rate of 1.4% throughout the year. The bank’s total assets reached $4.23 billion as of December 31, 2024, slightly increasing from $4.20 billion a year prior.
Chairman’s Insights on Performance
Curtis Griffith, Chairman and Chief Executive Officer of South Plains, expressed pride in the company’s performance in 2024. He attributed the positive results to careful liquidity management and strong loan production amidst a challenging landscape, highlighting a growing optimism amongst customers.
Future Outlook
Looking ahead, Griffith anticipates low to mid-single digit loan growth for the full year 2025, alongside improved deposit pricing across markets, which indicates a favorable environment for sustained profitability.
Detailed Operational Performance
Net Interest Income and Margin Analysis
Net interest income for the fourth quarter was $38.5 million, up from $37.3 million in Q3, driven by a lower cost of interest-bearing deposits. The interest expense decreased to $22.8 million, while non-interest income also showed a strong increase, totaling $13.3 million for Q4, largely from mortgage banking revenues.
Loan Portfolio Insights
As of December 31, 2024, total loans held for investment were $3.06 billion, reflecting a solid growth trajectory linked particularly to commercial real estate and multi-family loans.
Deposit and Asset Quality Overview
Total deposits stood at $3.62 billion, with non-interest-bearing deposits accounting for approximately 25.8% of this total, indicating a consistent deposit base. The asset quality remained strong, with a provision for credit losses of $1.2 million compared to $495 thousand in the previous quarter.
Contact Information
For more information, the company invites inquiries to be directed to Mikella Newsom, Chief Risk Officer, at (866) 771-3347 or via email at investors@city.bank.
Frequently Asked Questions
What were the net income results for Q4 2024?
Net income for the fourth quarter of 2024 was reported at $16.5 million.
How does the fourth quarter earnings compare to previous quarters?
The earnings per share were $0.96, which marked an increase compared to $0.66 in Q3 and $0.61 in Q4 2023.
What is South Plains Financial's focus for 2025?
The company aims for low to mid-single digit loan growth and anticipates lower deposit pricing.
How much did total loans held for investment increase?
Total loans held for investment increased by $40.9 million, which is a growth of 1.4% during 2024.
Who can be contacted for further inquiries?
Mikella Newsom, Chief Risk Officer, is available at (866) 771-3347 or investors@city.bank.
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