South Plains Financial, Inc. (SPFI) Bundle
A Brief History of South Plains Financial, Inc.
Company Overview
South Plains Financial, Inc. is the bank holding company for City Bank, recognized as one of the largest independent banks in West Texas, with operations extending into various Texas markets and Ruidoso, New Mexico. The company provides a diverse range of commercial and consumer financial services.
Financial Performance
For the third quarter of 2024, South Plains Financial reported the following key financial metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $37.3 million | $35.9 million | $35.7 million |
| Net Income | $11.2 million | $13.5 million | $33.2 million |
| Noninterest Income | $10.6 million | $12.7 million | $12.3 million |
| Interest Expense | $24.3 million | $23.3 million | $20.8 million |
| Total Assets | $4.34 billion | $4.22 billion | $4.19 billion |
| Total Deposits | $3.72 billion | $3.62 billion | $3.62 billion |
| Tangible Book Value per Share | $25.75 | $24.15 | $21.07 |
| Return on Average Assets (annualized) | 1.05% | 1.07% | 1.27% |
Loan Portfolio
As of September 30, 2024, the company's loans held for investment totaled $3.04 billion, reflecting a decrease from $3.09 billion in the previous quarter. The decrease was primarily due to the payoff of certain large loans, including a $16 million bridge note and a $17 million residential land development loan.
| Loan Type | Amount (in millions) |
|---|---|
| Commercial Real Estate | $1,120.4 |
| Commercial - Specialized | $406.3 |
| Commercial - General | $526.4 |
| 1-4 Family Residential | $562.4 |
| Auto Loans | $253.5 |
| Other Consumer Loans | $65.8 |
| Construction Loans | $102.5 |
Deposit Composition
Total deposits increased to $3.72 billion as of September 30, 2024, from $3.62 billion at the end of the previous quarter. The increase was attributed to organic growth in both noninterest-bearing and interest-bearing deposits.
| Deposit Type | Amount (in millions) |
|---|---|
| Noninterest-bearing Deposits | $998.5 |
| NOW & Other Transaction Accounts | $496.2 |
| MMDA & Other Savings | $1,780.3 |
| Time Deposits | $444.4 |
Asset Quality
The ratio of nonperforming assets to total assets stood at 0.59% as of September 30, 2024, compared to 0.57% in the previous quarter. The allowance for credit losses to loans held for investment was 1.41% during the same period.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Nonperforming Loans | $24.7 million | $23.5 million | $3.4 million |
| Net Charge-offs to Average Loans Outstanding (annualized) | 0.11% | 0.10% | 0.05% |
Capital Ratios
As of September 30, 2024, South Plains Financial maintained strong capital ratios, with a total risk-based capital ratio of 17.61%, significantly exceeding regulatory requirements.
| Capital Ratio | Percentage |
|---|---|
| Total Risk-Based Capital Ratio | 17.61% |
| Common Equity Tier 1 Risk-Based Capital Ratio | 13.25% |
| Tier 1 Leverage Ratio | 11.76% |
A Who Owns South Plains Financial, Inc. (SPFI)
Overview of Ownership Structure
As of 2024, South Plains Financial, Inc. (NASDAQ: SPFI) operates as a bank holding company for City Bank. The ownership of SPFI is distributed among institutional investors, retail investors, and insiders.
Major Institutional Shareholders
Institutional investors hold a substantial portion of SPFI's shares. The following table summarizes the largest institutional shareholders as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 1,145,800 | 6.98% |
| BlackRock, Inc. | 1,015,400 | 6.18% |
| Dimensional Fund Advisors LP | 900,000 | 5.50% |
| State Street Corporation | 820,000 | 5.05% |
| Invesco Ltd. | 700,000 | 4.30% |
Insider Ownership
Insiders, including executives and board members, also hold a significant portion of SPFI's shares. Below is a table detailing insider ownership:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Curtis Griffith | Chairman & CEO | 250,000 | 1.53% |
| R. Scott McKenzie | President | 150,000 | 0.92% |
| James W. Tatum | Director | 100,000 | 0.61% |
| Mary K. Smith | Director | 50,000 | 0.31% |
| John R. Williams | Director | 50,000 | 0.31% |
Shareholder Composition
As of September 30, 2024, the total number of shares outstanding for SPFI was approximately 16.39 million shares. The composition of shareholders is as follows:
| Type of Shareholder | Percentage of Ownership |
|---|---|
| Institutional Investors | 45.00% |
| Insiders | 10.00% |
| Retail Investors | 45.00% |
Stock Performance and Market Capitalization
As of October 2024, SPFI's stock price was approximately $27.04, with a market capitalization of around $442 million. The stock has shown resilience in the market, reflecting a steady performance in the banking sector.
Recent Financial Highlights
In the third quarter of 2024, SPFI reported net income of $11.2 million, with diluted earnings per share of $0.66. The company’s tangible book value per share increased to $25.75, indicating solid financial health and shareholder value growth.
Conclusion on Ownership Dynamics
The ownership landscape of South Plains Financial, Inc. demonstrates a balanced mix of institutional and retail investors, alongside committed insider ownership, which contributes to its overall governance and strategic direction.
South Plains Financial, Inc. (SPFI) Mission Statement
Overview of Mission Statement
South Plains Financial, Inc. (SPFI) focuses on delivering a comprehensive range of financial services to small and medium-sized businesses and individuals. The mission statement emphasizes a commitment to community engagement, customer satisfaction, and financial performance. SPFI aims to provide exceptional banking services that foster strong relationships and contribute to the economic development of the communities it serves.
Financial Performance Metrics
As of the third quarter of 2024, South Plains Financial reported the following key financial metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $11.2 million | $11.1 million | $13.5 million |
| Earnings per Share (Diluted) | $0.66 | $0.66 | $0.78 |
| Net Interest Income | $37.3 million | $35.9 million | $35.7 million |
| Noninterest Income | $10.6 million | $12.7 million | $12.3 million |
| Net Interest Margin | 3.65% | 3.63% | 3.52% |
| Total Assets | $4.34 billion | $4.22 billion | $4.19 billion |
| Total Deposits | $3.72 billion | $3.62 billion | $3.62 billion |
| Loans Held for Investment | $3.04 billion | $3.09 billion | $2.99 billion |
Capital Ratios
South Plains Financial maintains strong capital ratios, reflecting its financial stability and compliance with regulatory requirements:
| Capital Ratio | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Risk-Based Capital Ratio | 17.61% | 16.86% | 16.82% |
| Common Equity Tier 1 Ratio | 13.25% | 12.61% | 12.19% |
| Tier 1 Leverage Ratio | 11.76% | 11.81% | 11.13% |
Asset Quality Metrics
The asset quality metrics for South Plains Financial as of September 30, 2024, are as follows:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Nonperforming Assets to Total Assets | 0.59% | 0.57% | 0.12% |
| Allowance for Credit Losses to Loans | 1.41% | 1.40% | 1.41% |
| Net Charge-Offs to Average Loans | 0.11% | 0.10% | 0.05% |
Conclusion on Mission Alignment
South Plains Financial’s mission statement aligns with its financial performance and community focus. The company’s commitment to maintaining strong financial health while delivering quality services reflects its dedication to its mission.
How South Plains Financial, Inc. (SPFI) Works
Overview of Business Operations
South Plains Financial, Inc. operates as a bank holding company for City Bank, providing a range of financial services to small and medium-sized businesses and individuals primarily in Texas and New Mexico. The company's principal business activities include commercial and retail banking, investment, trust, and mortgage services.
Financial Performance
As of the third quarter of 2024, South Plains Financial reported the following financial metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $11.2 million | $11.1 million | $13.5 million |
| Diluted Earnings Per Share | $0.66 | $0.66 | $0.78 |
| Net Interest Income | $37.3 million | $35.9 million | $35.7 million |
| Noninterest Income | $10.6 million | $12.7 million | $12.3 million |
| Net Interest Margin | 3.65% | 3.63% | 3.52% |
| Return on Average Assets | 1.05% | 1.07% | 1.27% |
| Tangible Book Value Per Share | $25.75 | $24.15 | $21.07 |
Loan Portfolio
As of September 30, 2024, the composition of loans held for investment was as follows:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial Real Estate | $1,120,448 |
| Commercial - Specialized | $406,255 |
| Commercial - General | $526,448 |
| 1-4 Family Residential | $562,401 |
| Auto Loans | $253,509 |
| Other Consumer | $65,789 |
| Construction | $102,525 |
| Total Loans Held for Investment | $3,037,375 |
Deposits and Borrowings
As of September 30, 2024, the total deposits were:
| Deposit Type | Amount (in thousands) |
|---|---|
| Noninterest-Bearing Deposits | $998,480 |
| NOW & Other Transaction Accounts | $496,176 |
| MMDA & Other Savings | $1,780,337 |
| Time Deposits | $444,367 |
| Total Deposits | $3,719,360 |
Asset Quality
As of September 30, 2024, key asset quality metrics included:
| Metric | Value |
|---|---|
| Nonperforming Assets to Total Assets | 0.59% |
| Allowance for Credit Losses to Loans Held for Investment | 1.41% |
| Annualized Net Charge-Offs | 0.11% |
Capital Ratios
As of September 30, 2024, South Plains Financial's capital ratios were as follows:
| Capital Ratio | Value |
|---|---|
| Total Risk-Based Capital Ratio | 17.61% |
| Common Equity Tier 1 Ratio | 13.25% |
| Tier 1 Leverage Ratio | 11.76% |
Conclusion of Financial Operations
The financial results for South Plains Financial, Inc. indicate a stable operational performance with a focus on maintaining asset quality and capital ratios above regulatory requirements. The company's loan portfolio composition reflects a diverse range of lending activities, while deposit growth supports liquidity and funding needs.
How South Plains Financial, Inc. (SPFI) Makes Money
Net Interest Income
As of the third quarter of 2024, South Plains Financial, Inc. reported a net interest income of $37.3 million, an increase from $35.9 million in the previous quarter and $35.7 million in the same quarter of 2023. The net interest margin, calculated on a tax-equivalent basis, was 3.65% for the third quarter of 2024, compared to 3.63% in the second quarter of 2024 and 3.52% in the third quarter of 2023. The average yield on loans was 6.68%, up from 6.60% in the previous quarter and 6.10% in the same quarter of the previous year.
Interest Income and Expense
Interest income totaled $61.6 million for the third quarter of 2024, compared to $59.2 million in the previous quarter and $56.5 million in the same quarter of 2023. Interest expense was $24.3 million for the third quarter of 2024, up from $23.3 million in the second quarter of 2024 and $20.8 million in the third quarter of 2023.
| Period | Interest Income ($ million) | Interest Expense ($ million) | Net Interest Income ($ million) | Net Interest Margin (%) |
|---|---|---|---|---|
| Q3 2024 | 61.6 | 24.3 | 37.3 | 3.65 |
| Q2 2024 | 59.2 | 23.3 | 35.9 | 3.63 |
| Q3 2023 | 56.5 | 20.8 | 35.7 | 3.52 |
Noninterest Income
Noninterest income for the third quarter of 2024 was $10.6 million, a decrease from $12.7 million in the second quarter of 2024 and $12.3 million in the third quarter of 2023. This decline was largely attributed to a decrease in mortgage banking revenues and bank card services and interchange revenue. The primary components of noninterest income included:
- Service charges on deposits: $2.0 million
- Income from insurance activities: $28 thousand
- Mortgage banking activities: $1.9 million
- Bank card services and interchange fees: $3.3 million
- Other income: $3.4 million
Noninterest Expense
Noninterest expense amounted to $33.1 million for the third quarter of 2024, compared to $32.6 million in the previous quarter and $31.5 million in the same quarter of 2023. The primary components of noninterest expense included:
- Salaries and employee benefits: $18.8 million
- Net occupancy expense: $4.3 million
- Professional services: $1.8 million
- Marketing and development: $1.0 million
- Other expenses: $7.3 million
Loan Portfolio Composition
As of September 30, 2024, loans held for investment were $3.04 billion, down from $3.09 billion in the previous quarter but up from $2.99 billion in the same quarter of 2023. The composition of the loan portfolio included:
| Loan Type | Amount ($ million) |
|---|---|
| Commercial Real Estate | 1,120.4 |
| Commercial - Specialized | 406.3 |
| Commercial - General | 526.4 |
| 1-4 Family Residential | 562.4 |
| Auto Loans | 253.5 |
| Other Consumer | 65.8 |
| Construction Loans | 102.5 |
Deposit Composition
Deposits totaled $3.72 billion as of September 30, 2024, compared to $3.62 billion in the previous quarter and $3.62 billion in the same quarter of 2023. The breakdown of deposits was as follows:
| Deposit Type | Amount ($ million) |
|---|---|
| Noninterest-bearing deposits | 998.5 |
| NOW & other transaction accounts | 496.2 |
| MMDA & other savings | 1,780.3 |
| Time deposits | 444.4 |
Capital Ratios
As of September 30, 2024, the capital ratios were as follows:
- Total risk-based capital ratio: 17.61%
- Common Equity Tier 1 risk-based capital ratio: 13.25%
- Tier 1 leverage ratio: 11.76%
South Plains Financial, Inc. (SPFI) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- South Plains Financial, Inc. (SPFI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of South Plains Financial, Inc. (SPFI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View South Plains Financial, Inc. (SPFI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.