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Dec 31, 2024

South Plains Financial Q4 2024 Earnings Report

Reported financial results for the fourth quarter and year ended December 31, 2024.

Key Takeaways

South Plains Financial, Inc. reported a net income of $16.5 million and diluted earnings per share of $0.96 for the fourth quarter of 2024. The company's net interest margin was 3.75%, and return on average assets was 1.53%. Loans held for investment were $3.06 billion and deposits totaled $3.62 billion.

Net income for Q4 2024 was $16.5 million, up from $10.3 million in Q4 2023.

Diluted earnings per share for Q4 2024 was $0.96, compared to $0.61 in Q4 2023.

Net interest margin was 3.75% for Q4 2024, compared to 3.52% for Q4 2023.

Loans held for investment increased to $3.06 billion as of December 31, 2024, up from $3.01 billion as of December 31, 2023.

Total Revenue
$51.9M
Previous year: $44.3M
+17.1%
EPS
$0.96
Previous year: $0.61
+57.4%
Net Interest Margin
3.75%
Previous year: 3.52%
+6.5%
Efficiency Ratio
57.5%
Nonperforming Assets to Total Assets
0.58%
Previous year: 0.14%
+314.3%
Cash and Equivalents
$359M
Previous year: $330M
+8.8%
Total Assets
$4.23B
Previous year: $4.2B
+0.7%

South Plains Financial

South Plains Financial

South Plains Financial Revenue by Segment

Forward Guidance

South Plains expects to deliver low to mid-single digit loan growth for the full year 2025 and anticipates deposit pricing to fall across its markets, contributing to margin expansion.

Positive Outlook

  • Company successfully navigated a challenging environment
  • Liquidity was tightly managed to optimize profitability and return metrics
  • Conservative approach to underwriting and risk management maintained
  • Strong new business production pipeline seen in more than two years
  • Deposit pricing is falling across markets, contributing to margin expansion

Challenges Ahead

  • Potential decline in general economic conditions
  • Potential recession in the United States and market areas
  • Increased competition for deposits
  • Impact of changes in market interest rates
  • Lingering inflationary pressures