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Did South Plains beat or miss consensus estimates last quarter?

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What were the key takeaways from South Plains’s earnings call?

What guidance did South Plains's management provide for the next earnings period?

What factors drove the changes in South Plains's revenue and profit?

- **EPS Growth**: 11.6% QoQ increase to $0.96, driven by reduced credit provisions and NIM expansion.
- **Lending Expansion**: 10% of 20% hiring target achieved, targeting 6-month breakeven for new lenders.
- **Capital Strength**: Tier 1 leverage ratio of 12.37% supports M&A and dividend policy.
- **Cost Savings**: $3.5M annual savings from subordinated debt redemption.
- **Credit Resilience**: Indirect auto portfolio 30+ DPD rate at 24 basis points, with 86% of loans to high-credit borrowers.

**【CEO Summary Section】**
- Delivered strong third-quarter results with net interest income expansion and improved credit quality.
- Emphasized organic growth through hiring (up to 20% increase in lending team) and selective M&A opportunities.
- Highlighted capital strength (Tier 1 leverage ratio of 12.37%) and commitment to shareholder returns (26th consecutive dividend).

**【CFO Financial Commentary】**
- Diluted EPS of $0.96, up 11.6% QoQ, driven by reduced provision for credit losses and net interest income growth.
- Net interest margin (NIM) on a tax-equivalent basis was 4.05%, with 9 basis points of improvement excluding one-time credit workout gains.
- Deposits increased $142.2 million, driven by low-cost noninterest-bearing deposits (27% of total).
- Redemption of $50 million subordinated debt saved $3.5 million annually in interest costs.

**【Q&A Key Highlights】**
- **Lending Team Expansion**: 10% of 20% target achieved, with hires in Houston, Dallas, and Permian Basin. Breakeven expected within 6 months.
- **M&A Strategy**: Focus on culture-fit banks with conservative risk profiles; multiple deals in early stages.
- **Indirect Auto Portfolio**: Tightened LTV standards; 86% of loans to super prime/prime borrowers, with 30+ DPD rate at 24 basis points.
- **NIM Outlook**: Expect modest decline in Q4 due to lagging deposit repricing, but stable long-term outlook.
- **Credit Risks**: Elevated loan payoffs (multifamily down $100M over 3Qs) but no material impact on asset quality.


South Plains Financial, Inc. (SPFI) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SPFI

SPFI fundamentals

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