South Plains Financial ( (SPFI) ) has released its Q4 earnings. Here is a breakdown of the information South Plains Financial presented to its investors.
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South Plains Financial, Inc. is a bank holding company for City Bank, a Texas state-chartered bank, providing a broad range of financial services to businesses and individuals primarily in West Texas and other markets across Texas and New Mexico.
In its latest financial results, South Plains Financial reported a notable increase in net income for the fourth quarter of 2024, reaching $16.5 million compared to $10.3 million in the same quarter of the previous year. This improvement is part of the company’s efforts to navigate a challenging economic environment while optimizing profitability and maintaining a conservative approach to risk management.
Key financial highlights for the fourth quarter include a rise in diluted earnings per share to $0.96, an increase in net interest margin to 3.75%, and a boost in noninterest income driven by mortgage banking revenues. Despite a year-over-year decrease in full-year net income to $49.7 million from $62.7 million, the company saw growth in loans held for investment and maintained a strong capital position, with significant capital ratios exceeding regulatory minimums.
The company also noted a decrease in noninterest expense, contributing to its improved quarterly performance. South Plains Financial experienced a slight decline in deposits but managed to maintain asset quality with a stable allowance for credit losses ratio. The company’s overall financial health and operational efficiency have shown resilience amid a fluctuating market.
Looking ahead, South Plains Financial anticipates modest loan growth and continues to see optimism across its customer base, expecting further margin expansion as deposit pricing declines. The company remains committed to delivering sustainable financial results and supporting its market areas through prudent financial management.
