South Plains Financial Q1 2021 Earnings Report
Key Takeaways
South Plains Financial reported a net income of $15.2 million and diluted earnings per share of $0.82 for the first quarter of 2021. The company saw an increase in noninterest income driven by mortgage banking activities, while also managing to decrease the average cost of deposits.
Net income for the first quarter of 2021 was $15.2 million.
Diluted earnings per share for the first quarter of 2021 was $0.82.
Pre-tax, pre-provision income (non-GAAP) for the first quarter of 2021 was $19.0 million.
Average cost of deposits for the first quarter of 2021 decreased to 29 basis points.
South Plains Financial
South Plains Financial
South Plains Financial Revenue by Segment
Forward Guidance
South Plains Financial anticipates loan growth to reaccelerate to a low single digit rate through 2021, excluding PPP loans, before returning to mid-single digit growth in 2022.
Positive Outlook
- Local Texas markets continued to recover as the pace of business has started to accelerate.
- Real estate volumes remained strong.
- The price of oil continued to rise.
- Customers' demand for credit has improved.
- Loan growth is expected to reaccelerate.
Challenges Ahead
- Potential impacts of the COVID-19 pandemic remain uncertain.
- Additional provisions for loan losses may be necessary in future periods.
- Lower loan rates and less purchase discount accretion impacted interest income.
- Higher health insurance costs increased personnel expenses.
- Slower loan demand and accelerated repayments experienced during 2020.