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Mar 31, 2022
South Plains Financial Q1 2022 Earnings Report
South Plains Financial's financial results were reported for Q1 2022.
Key Takeaways
South Plains Financial reported a net income of $14.3 million and diluted earnings per share of $0.78 for the first quarter of 2022. The company experienced loan growth and deposit growth, while also seeing a negative provision for loan losses.
Net income for the first quarter of 2022 was $14.3 million.
Diluted earnings per share for the first quarter of 2022 was $0.78.
Loans held for investment grew $16.1 million, or 2.6% annualized.
The Company recorded a negative provision for loan losses of $2.1 million in the first quarter of 2022.
South Plains Financial
South Plains Financial
Forward Guidance
South Plains Financial is confident in its outlook for mid to high single digit loan growth for 2022.
Positive Outlook
- Underlying loan demand remains strong with solid momentum across all markets.
- Recent acquisitions by out-of-state banks are creating customer disruption and opening opportunities in Lubbock.
- Economic growth is strong in Dallas, Houston and El Paso.
- Recently hired lenders continue to ramp their portfolios, providing visibility to accelerating loan growth.
- Progress has been achieved in the Permian Basin through investments in employees, infrastructure and operations.
Challenges Ahead
- Decline in mortgage business due to rising interest rate environment.
- Uncertainty from the ongoing COVID-19 pandemic and its impact on the economy and customers.
- Potential need for additional or reversal provisions for loan losses in future periods.
- A credit of approximately $46 million, in the energy sector, is expected to be paid off during the second quarter of 2022 as it moves to a non-bank structure.
- The decline was mainly driven by a $30 million dollar change in the fair value of our available for sale securities and cash flow hedges, net of tax, as a result of the large increase in interest rates experienced during the first quarter of 2022.