Loading...
•
Sep 30, 2020
South Plains Financial Q3 2020 Earnings Report
Reported financial results for the quarter ended September 30, 2020.
Key Takeaways
South Plains Financial, Inc. reported a net income of $16.7 million for the third quarter of 2020, with diluted earnings per share of $0.92. The company experienced strong revenue growth, particularly in mortgage banking activities, and maintained a conservative approach to its loan portfolio and reserves.
Net income for Q3 2020 was $16.7 million, a significant increase from both the previous quarter and the same quarter last year.
Diluted earnings per share for Q3 2020 reached $0.92, surpassing the figures from Q2 2020 and Q3 2019.
The company saw a sharp decline in active loan modifications related to COVID-19 during Q3 2020.
Strong revenue growth was experienced, driven by investments in the mortgage business.
Revenue by Segment
Forward Guidance
The company issued $50 million of fixed-to-floating rate subordinated notes, that qualify as Tier 2 capital for regulatory purposes. The company continues to be pleased with their acquisition of West Texas State Bank this past year and see M&A as an attractive strategy to further expand their geographic footprint in West Texas.
Positive Outlook
- Smooth bank operations.
- Customers have largely weathered the uncertain economic environment to date.
- Borrowers were allowed to modify their loans to interest-only payments early in the pandemic.
- Local economies are improving with the pace of business accelerating.
- Investments are generating strong results in the mortgage business.
Challenges Ahead
- Uncertainty remains from COVID-19.
- The full extent of the impact on the economy and the Bank’s customers is unknown at this time.
- Additional provisions for loan losses may be necessary in future periods.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...