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Sep 30, 2021
South Plains Financial Q3 2021 Earnings Report
Financial results reported for the quarter ended September 30, 2021.
Key Takeaways
South Plains Financial, Inc. reported a net income of $15.2 million and diluted earnings per share of $0.82 for the third quarter of 2021. The company experienced loan growth and benefited from a strong Texas economy.
Net income for the third quarter of 2021 was $15.2 million.
Diluted earnings per share for the third quarter of 2021 was $0.82.
Average cost of deposits for the third quarter of 2021 decreased to 25 basis points.
Loans held for investment grew $125.6 million, or 5.5%, during the third quarter of 2021.
South Plains Financial
South Plains Financial
Forward Guidance
South Plains Financial expects to continue redeploying excess liquidity into higher yielding loans and anticipates an acceleration to net interest income, offsetting an expected decline in mortgage revenue.
Positive Outlook
- Expect to continue redeploying our excess liquidity into higher yielding loans
- Believe this will drive an acceleration to net interest income
- Plan to offset the eventual decline in mortgage revenue as activity normalizes in future periods
- Remain very optimistic with what the future holds for South Plains
- Continue to see our shares trading below intrinsic value
Challenges Ahead
- Expect the eventual decline in mortgage revenue as activity normalizes in future periods
- The Bank’s technology initiatives are expected to modestly add to noninterest expense
- There is continued uncertainty from the ongoing COVID-19 pandemic
- The full extent of the impact on the economy and the Bank’s customers remains unknown at this time
- Additional provisions for loan losses may be necessary in future periods