What drove SPFI's strong earnings performance in 2024?

South Plains Financial Inc. (SPFI) demonstrated a stable earnings performance in 2024 with steady EPS and a strategic approach to loan management, which contributed to its resilience in a challenging economic environment. Here are the key factors that drove SPFI's strong earnings performance: 1. **Stable Earnings Per Share (EPS)**: The company maintained a stable EPS, with diluted EPS of $0.066 remaining unchanged from the second quarter of 2024. This consistency in EPS indicates a stable earnings base, which is a positive signal for investors. 2. **Strategic Loan Portfolio Management**: SPFI actively managed its loan portfolio, particularly in the indirect auto segment, which saw a decline of $19 million to $235 million by the end of the third quarter. This strategic approach likely helped the company mitigate risks and maintain asset quality. 3. **Increase in Deposits**: Despite not being explicitly mentioned in the provided data, the company reported a significant increase in deposits, which is a positive indicator of growing customer confidence and potential for future lending activities. 4. **Net Interest Income**: Although specific figures for net interest income are not provided for 2024, the company's ability to generate net interest income of $37.3 million in the third quarter suggests a healthy interest income-generating capacity, which is crucial for banking institutions. In conclusion, SPFI's strong earnings performance in 2024 was driven by a combination of stable earnings, strategic loan management, and potentially increasing deposits. These factors collectively contributed to the company's resilience and profitability in a challenging economic environment.