South Plains Financial, Inc. Reports Strong Q4 and Full Year 2024 Results

South Plains Financial, Inc. (NASDAQ: SPFI), the parent company of City Bank, has released its financial results for the fourth quarter and full year of 2024. The company reported strong earnings and revenue growth, driven by a combination of factors including loan growth, deposit growth, and margin expansion.

Fourth Quarter 2024 Highlights

* Net income for the fourth quarter of 2024 was $16.5 million, compared to $11.2 million in the third quarter and $10.3 million in the fourth quarter of 2023.
* Diluted earnings per share for the fourth quarter of 2024 was $0.96, compared to $0.66 in the third quarter and $0.61 in the fourth quarter of 2023.
* Average cost of deposits for the fourth quarter of 2024 was 229 basis points, compared to 247 basis points in the third quarter and 224 basis points in the fourth quarter of 2023.
* Net interest margin, calculated on a tax-equivalent basis, was 3.75% for the fourth quarter of 2024, compared to 3.65% in the third quarter and 3.52% in the fourth quarter of 2023.
* Return on average assets for the fourth quarter of 2024 was 1.53% annualized, compared to 1.05% annualized in the third quarter and 0.99% annualized in the fourth quarter of 2023.
* Tangible book value (non-GAAP) per share was $25.40 as of December 31, 2024, compared to $25.75 as of September 30, 2024 and $23.47 as of December 31, 2023.



Full Year 2024 Highlights

* Full year net income of $49.7 million in 2024, compared to $62.7 million in 2023.
* Diluted earnings per share of $2.92 in 2024, compared to $3.62 in 2023.
* Loans held for investment grew $40.9 million, or 1.4%, during 2024.
* Total assets were $4.23 billion at December 31, 2024, compared to $4.20 billion at December 31, 2023.
* Return on average assets of 1.17% for the full year 2024, compared to 1.54% for 2023.

Key Drivers of Growth

1. Loan Growth: South Plains Financial saw strong underlying loan production, driven by a growing level of optimism from its customers. This optimism translated into the strongest new business production pipeline seen in more than two years, leading to a 1.4% growth in loans held for investment during 2024.
2. Deposit Growth: The company experienced deposit growth, which contributed to its strong margin expansion in the fourth quarter. This growth in deposits was reinvested into the loan portfolio, driving the increase in loans held for investment.
3. Deposit Pricing Fall: South Plains Financial witnessed a fall in deposit pricing across its markets, which contributed to the expansion of its net interest margin. As deposits become cheaper, the company can reinvest these funds into loans, driving the growth in loans held for investment.



In conclusion, South Plains Financial, Inc. reported strong financial results for the fourth quarter and full year of 2024, driven by loan growth, deposit growth, and margin expansion. The company's focus on managing liquidity, maintaining credit discipline, and building a strong loan pipeline has positioned it well for future growth. As the credit environment continues to normalize and deposit cost pressures ease, South Plains Financial is well-positioned to deliver low to mid-single digit loan growth in the coming year.