Q3 2024 South Plains Financial Inc Earnings Call Transcript
Key Points
- South Plains Financial Inc (SPFI) remains well-capitalized with a consolidated common equity tier one risk-based capital ratio of 13.25% and a tier one leverage ratio of 11.76%.
- The company experienced a significant increase in deposits, growing by approximately $95 million or more than 10% annualized in the third quarter.
- SPFI holds a strong market position, being number one in deposit share in the Lubbock market with an 18% share.
- The company has a robust new business production pipeline, the strongest in more than two years, indicating potential for future loan growth.
- SPFI's credit quality remains solid with no adverse trends observed in the third quarter, and a resolution in place for a previously nonaccrual multifamily loan in Houston.
- Loans held for investment declined by approximately $57 million during the third quarter due to loan payoffs and a managed decline in the indirect auto portfolio.
- Noninterest income decreased to $10.6 million from $12.7 million in the previous quarter, primarily due to a decrease in mortgage banking revenues.
- The company's third quarter earnings were negatively impacted by $0.03 per share after tax due to a decrease in the fair value adjustment of mortgage servicing rights.
- The indirect auto loan portfolio continued to decline, dropping by $19 million to $235 million at the end of the third quarter.
- SPFI's nonperforming loans increased slightly to $24.7 million at the end of the third quarter, with a significant portion attributed to a $20 million multifamily loan on nonaccrual.
Good afternoon, ladies and gentlemen and welcome to the South Plains Financial Inc third quarter, 2024 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded. I'd like to turn the conference over to Steve Crockett, Chief Financial Officer and Treasurer of South Plains Financial. Please go ahead.
Thank you, operator and good afternoon everyone. We appreciate you joining our earnings conference call with me here today are Curtis Griffith, our Chairman and CEO; Cory Newsom, our President; and Brent Bates, the bank's Chief Credit Officer, the related earnings press release and earnings presentation are available on the news and events section of our website SPFI.bank.
Before we begin, I'd like to remind everyone that this call may contain forward-looking statements and are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated future results.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
