Core Viewpoint - South Plains Financial (SPFI) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Recent Performance and Projections - For the fiscal year ending December 2025, South Plains Financial is projected to earn $3.14 per share, reflecting a 7.5% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for South Plains Financial has risen by 10%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of South Plains Financial to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Viewpoint - South Plains Financial (SPFI) is highlighted as a strong investment opportunity with a Zacks Rank 1 (Strong Buy) and a notable increase in earnings estimates for the second quarter [1]. Financial Metrics - South Plains Financial has a price-to-earnings (P/E) ratio of 11.42, significantly lower than the S&P average of 22.67, indicating strong value characteristics [2]. - The company has experienced a 10.2% increase in the Zacks Consensus Estimate for its second quarter earnings over the last 60 days [1].

PART I. FINANCIAL INFORMATION [Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) Presents unaudited consolidated financial statements, highlighting total assets of $4.41 billion, net income of $12.3 million, and a $0.15 per share dividend [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $4.41 billion, driven by higher cash and deposits, with loans at $3.03 billion and equity at $443.7 million Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $536,300 | $359,082 | | Loans held for investment, net | $3,032,892 | $3,011,817 | | Securities available for sale | $571,527 | $577,240 | | **Total Assets** | **$4,405,209** | **$4,232,239** | | **Liabilities & Equity** | | | | Total deposits | $3,792,519 | $3,620,876 | | Total liabilities | $3,961,466 | $3,793,290 | | Total stockholders' equity | $443,743 | $438,949 | | **Total Liabilities & Equity** | **$4,405,209** | **$4,232,239** | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Net income rose to $12.3 million, with diluted EPS at $0.72, driven by a 9% increase in net interest income and improved comprehensive income Q1 2025 vs. Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $38,527 | $35,368 | | Provision for credit losses | $420 | $830 | | Noninterest Income | $10,625 | $11,409 | | Noninterest Expense | $33,030 | $31,930 | | **Net Income** | **$12,294** | **$10,874** | | **Diluted EPS** | **$0.72** | **$0.64** | | Comprehensive Income | $14,971 | $3,411 | [Consolidated Statements of Changes in Stockholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity increased to $443.7 million, driven by net income and comprehensive income, partially offset by dividends and stock repurchases - Key drivers for the change in stockholders' equity in Q1 2025 were net income of **$12.3 million**, offset by cash dividends of **$2.5 million** and common stock repurchases of **$8.3 million**[14](index=14&type=chunk) - The company repurchased **250,000 shares** of common stock for **$8.25 million** during the first quarter of 2025[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash increased by $177.2 million, with $26.1 million from operations, $9.8 million used in investing, and $160.9 million provided by financing activities Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $26,095 | $19,160 | | Net cash provided by (used in) investing activities | ($9,774) | $12,497 | | Net cash provided by financing activities | $160,897 | $10,124 | | **Net change in cash and cash equivalents** | **$177,218** | **$41,781** | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, securities portfolio with $86.2 million unrealized losses, loan portfolio composition, $43.0 million ACL, and strong capital adequacy Securities Available for Sale (March 31, 2025, in thousands) | Security Type | Fair Value | Gross Unrealized Loss | | :--- | :--- | :--- | | State and municipal | $169,018 | ($29,155) | | Residential mortgage-backed | $263,917 | ($50,234) | | Commercial mortgage-backed | $41,033 | ($5,232) | | **Total** | **$571,527** | **($86,201)** | Loan Portfolio Composition (March 31, 2025, in thousands) | Loan Category | Amount | | :--- | :--- | | Commercial real estate | $1,126,800 | | Commercial - general & specialized | $951,501 | | Consumer (1-4 family, auto, other) | $895,518 | | Construction | $102,041 | | **Total Loans Held for Investment** | **$3,075,860** | - The Allowance for Credit Losses (ACL) on loans was **$43.0 million**, or **1.40%** of loans held for investment, as of March 31, 2025, down slightly from **$43.2 million** at year-end 2024[40](index=40&type=chunk) - As of March 31, 2025, the company and its bank subsidiary met all **'well-capitalized'** regulatory requirements, with a consolidated Total Capital to Risk-Weighted Assets ratio of **17.93%**[78](index=78&type=chunk)[79](index=79&type=chunk)[81](index=81&type=chunk) - On April 17, 2025, the Company declared a cash dividend of **$0.15 per share**[98](index=98&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 results, highlighting net income of $12.3 million, improved net interest margin, loan and deposit growth, and strong asset quality and capital positions [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Net income increased by $1.4 million, driven by a $3.2 million rise in net interest income and expanded net interest margin, despite higher noninterest expenses Key Performance Metrics (Annualized) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income (in millions) | $12.3 | $10.9 | | Diluted EPS | $0.72 | $0.64 | | Return on Average Assets | 1.16% | 1.04% | | Return on Average Equity | 11.30% | 10.72% | - Net interest income increased by **$3.2 million** YoY, driven by a **$1.2 million** increase in interest income and a **$2.0 million** decrease in interest expense[117](index=117&type=chunk) - Noninterest income decreased by **$0.8 million** YoY, primarily due to a **$1.8 million** decline in mortgage banking activities income, which included a **$1.6 million** negative fair value adjustment on MSRs[125](index=125&type=chunk)[128](index=128&type=chunk) - Noninterest expense increased by **$1.1 million** YoY, mainly due to a **$453 thousand** increase in salaries and a **$247 thousand** increase in professional services[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) [Financial Condition](index=31&type=section&id=Financial%20Condition) Total assets grew to $4.41 billion, with loans at $3.08 billion and deposits at $3.79 billion, while maintaining significant borrowing capacity - Loans held for investment grew by **0.7%** to **$3.08 billion** in Q1 2025, with growth in residential and commercial land development, offset by decreases in seasonal agricultural loans[136](index=136&type=chunk) - Total deposits increased by **4.7%** to **$3.79 billion**, driven by a **$70.2 million** seasonal increase in public funds and organic growth[182](index=182&type=chunk) - The company has significant available liquidity, including **$1.13 billion** in borrowing capacity from the FHLB and **$655.9 million** from the Federal Reserve Bank of Dallas, with no outstanding advances as of March 31, 2025[189](index=189&type=chunk)[191](index=191&type=chunk) [Allowance for Credit Losses and Asset Quality](index=34&type=section&id=Allowance%20for%20Credit%20Losses%20and%20Asset%20Quality) ACL was $43.0 million, with asset quality improving as nonperforming loans decreased to $6.5 million, and net charge-offs were $519 thousand Asset Quality Indicators (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Nonaccrual loans | $1,853 | $22,102 | | Allowance for credit losses | $42,968 | $43,237 | | Ratio of allowance to nonaccrual loans | 2,318.83% | 195.62% | | Ratio of nonaccrual loans to total loans | 0.06% | 0.72% | - Nonperforming loans decreased by **$17.5 million** to **$6.5 million**, mainly because a **$19.0 million** credit was placed back on accrual status and was subsequently repaid in full after quarter-end[172](index=172&type=chunk) - Net charge-offs for Q1 2025 were **$519 thousand** (**0.07%** of average loans, annualized), down from **$947 thousand** (**0.13%** annualized) in Q1 2024[164](index=164&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity and capital, with stockholders' equity at $443.7 million and all regulatory capital ratios exceeding 'well-capitalized' minimums - The company has access to approximately **$1.13 billion** from the FHLB and **$655.9 million** from the Federal Reserve discount window to support liquidity needs[202](index=202&type=chunk) Consolidated Capital Ratios | Ratio | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | CET 1 capital (to risk-weighted assets) | 13.59% | 13.53% | | Tier 1 capital (to risk-weighted assets) | 14.87% | 14.80% | | Total capital (to risk-weighted assets) | 17.93% | 17.86% | | Tier 1 capital (to average assets) | 12.04% | 12.04% | [Non-GAAP Financial Measures](index=43&type=section&id=Non-GAAP%20Financial%20Measures) Provides reconciliation of GAAP to non-GAAP measures, with tangible book value per share increasing to $26.05, aiding investor evaluation of performance Non-GAAP Reconciliation and Ratios | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total stockholders' equity (GAAP) | $443,743 | $438,949 | | Less: Goodwill and other intangibles | ($20,884) | ($21,035) | | **Tangible common equity (Non-GAAP)** | **$422,859** | **$417,914** | | Book value per share (GAAP) | $27.33 | $26.67 | | **Tangible book value per share (Non-GAAP)** | **$26.05** | **$25.40** | [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discusses market risk, primarily interest rate volatility, with simulations showing a 100 basis point rate increase would decrease NII by 1.13% over 12 months Net Interest Income Sensitivity Analysis (12-Month Horizon) | Change in Interest Rates (Basis Points) | % Change in Net Interest Income (as of March 31, 2025) | | :--- | :--- | | +300 | (3.53)% | | +200 | (2.25)% | | +100 | (1.13)% | | -100 | 0.05% | | -200 | 0.55% | [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting in Q1 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[235](index=235&type=chunk) - **No material changes** to the company's internal control over financial reporting occurred during the first quarter of 2025[236](index=236&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any litigation with a material adverse effect on its financial position or results of operations - The company is **not presently involved** in any litigation that management believes would result in a **material adverse effect** on its financial position or results of operations[238](index=238&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - There have been **no material changes** in the risk factors disclosed by the Company in its 2024 Annual Report on Form 10-K[239](index=239&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details stock repurchase activities, including the conclusion of a $10.0 million program and the approval and partial execution of a new $15.0 million program - On February 21, 2025, the board approved a new stock repurchase program for up to **$15.0 million** of the company's common stock[241](index=241&type=chunk) Share Repurchase Activity (Q1 2025) | Month | Total Shares Repurchased | Average Price Paid Per Share | Total Dollar Amount Purchased | | :--- | :--- | :--- | :--- | | January 2025 | — | — | — | | February 2025 | — | — | — | | March 2025 | 250,000 | $33.00 | $8,250,000 | [Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable - Not applicable[244](index=244&type=chunk) [Mine Safety Disclosures](index=47&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable - Not applicable[245](index=245&type=chunk) [Other Information](index=47&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2025 - **No directors or officers** adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2025[246](index=246&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including CEO/CFO certifications and XBRL data files - Exhibits filed include **CEO/CFO certifications** and **XBRL data files**[247](index=247&type=chunk)

Core Viewpoint - South Plains Financial (SPFI) shows potential as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][10] Earnings Estimate Revisions - Analysts have shown growing optimism regarding South Plains Financial's earnings prospects, reflected in upward revisions of earnings estimates, which typically correlate with stock price movements [2] - For the current quarter, the earnings estimate is $0.79 per share, representing a 19.7% increase from the previous year, with a 14.49% rise in consensus estimates over the last 30 days [6] - The full-year earnings estimate stands at $3.14 per share, a 7.53% increase from the prior year, with a 10% rise in consensus estimates due to positive revisions [7][8] Zacks Rank and Performance - South Plains Financial currently holds a Zacks Rank 1 (Strong Buy), supported by favorable estimate revisions, which historically lead to significant outperformance compared to the S&P 500 [9] - Stocks with Zacks Rank 1 and 2 have shown an average annual return of +25% since 2008, indicating a strong track record of success [3][9] Recent Stock Performance - The stock has gained 7.3% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [10]

Core Viewpoint - South Plains Financial (SPFI) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook driven by rising earnings estimates [1][4]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in a company's earnings picture, which significantly influences stock price movements [2][5]. - An increase in earnings estimates correlates strongly with near-term stock price increases, as institutional investors adjust their valuations based on these estimates [5][6]. Recent Performance of South Plains Financial - For the fiscal year ending December 2025, South Plains Financial is expected to earn $3.14 per share, reflecting a 7.5% increase from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for South Plains Financial has risen by 10%, indicating a positive trend in earnings expectations [9]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of South Plains Financial to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].

Core Viewpoint - South Plains Financial (SPFI) shares have increased by 1.9% recently, with analysts suggesting a potential upside of 26.8% based on a mean price target of $42.75 [1] Price Targets and Analyst Consensus - The average price target for SPFI ranges from a low of $39 to a high of $45, with a standard deviation of $2.63, indicating a relatively tight clustering of estimates [2] - The lowest estimate suggests a 15.7% increase, while the highest indicates a 33.5% upside [2] - Analysts' price targets should be approached with caution, as they may not accurately reflect future stock movements [3][7] Earnings Estimates and Analyst Agreement - There is strong agreement among analysts regarding SPFI's ability to report better earnings, which supports the potential for stock upside [4][11] - Over the past 30 days, two earnings estimates for SPFI have been revised upward, leading to a 10% increase in the Zacks Consensus Estimate [12] - SPFI holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors [13]

SLM (SLM) Q1 2025 Earnings Call April 25, 2025 01:16 AM ET Company Participants Kate deLacy - Senior Director, Head of Investor RelationsJonathan Witter - CEO & DirectorPete Graham - EVP & CFOJeffrey Adelson - Executive DirectorNathaniel Richam-Odoi - Equity Research AssociateJohn Hecht - Managing DirectorMark Devries - Director Conference Call Participants Terry Ma - Senior Equity Research AnalystMoshe Orenbuch - Managing Director & Senior AnalystMichael Kaye - Equity Research AnalystRichard Shane - Stock ...

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $0.72, down from $0.96 in the linked quarter, with a $0.14 per share after-tax differential in the mortgage servicing rights fair value adjustment [26] - Net interest income remained unchanged at $38.5 million, while the net interest margin increased to 3.81% from 3.75% in the linked quarter, primarily due to a decline in the cost of deposits [27] - Deposits increased by $171.6 million to $3.79 billion, with the cost of deposits decreasing to 219 basis points from 229 basis points in the linked quarter [28] Business Line Data and Key Metrics Changes - Loans held for investment increased by $20.8 million or 2.7% annualized to $3.08 billion, with growth in commercial owner-occupied real estate loans and commercial goods and services loans [16] - The indirect auto loan portfolio grew by $7 million to $243 million, with a decline in 30-plus days past due loans to 41 basis points from 47 basis points in the fourth quarter [21] - Non-interest income decreased to $10.6 million from $13.3 million in the linked quarter, primarily due to a decrease in mortgage banking revenues [23][24] Market Data and Key Metrics Changes - The loan portfolio in major metropolitan markets decreased by $18 million to $1.04 billion, with higher levels of scheduled and early payments on loans exceeding new loan production [18] - The company reported strong loan growth in the Permian market, achieving the strongest loan growth in a single quarter since entering the market in 2019 [20] - The company anticipates loan growth to trend towards the lower end of the low- to mid-single-digit range for the full year 2025 due to economic uncertainty [23] Company Strategy and Development Direction - The company remains focused on organic growth while selectively adding to its team across major metropolitan and rural markets [10] - A $15 million stock repurchase program was authorized, with $8.3 million spent to repurchase 250,000 shares in the first quarter, indicating a strategy to balance buybacks with liquidity for growth [13] - The company is positioning itself to capitalize on opportunities during economic downturns, emphasizing the importance of credit quality and customer relationships [14][96] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to perform well through economic downturns, citing strong credit quality and a solid capital position [9][96] - The company is cautious about the economic outlook but believes Texas's pro-business environment will support growth above the broader U.S. economy [9] - Management expects to continue hiring experienced lenders to enhance the team's capabilities and support growth [10][96] Other Important Information - The allowance for credit losses to total loans held for investment ratio was 1.40%, with a recorded provision for credit losses of $420,000 in the first quarter [29] - Non-interest expense increased to $33.0 million from $29.9 million in the linked quarter, with expectations that this level will be a good run rate for the remainder of the year [30] - Tangible book value per share increased to $26.05 from $25.40, driven by net income after dividends and an increase in accumulated other comprehensive income [31] Q&A Session Summary Question: On deposit costs and potential for further reduction - Management indicated that while they have made significant progress in reducing deposit costs, there is still room for further reductions, particularly in exception pricing [37][40] Question: Loan yield stability and margin expansion - Management noted that while the loan yield has been stable, further expansion of the net interest margin may be limited, but they remain optimistic about maintaining current levels [41][46] Question: Elevated loan payoffs and their impact - Management acknowledged that payoffs were approximately $10 million higher in the first quarter compared to the previous quarter, but they are comfortable with the anticipated payoffs as production remains strong [50][52] Question: Current hiring landscape and mortgage hiring outlook - Management stated they are actively hiring but are selective, particularly in the mortgage sector, as they prepare for a potential housing recovery [59][63] Question: Concentration of loan portfolio in energy and growth - The energy concentration in the loan portfolio is around 4%, primarily driven by energy service businesses, with management noting growth in this area [78][82]

For the quarter ended March 2025, South Plains Financial (SPFI) reported revenue of $49.15 million, up 5.1% over the same period last year. EPS came in at $0.72, compared to $0.64 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $48.55 million, representing a surprise of +1.24%. The company delivered an EPS surprise of +10.77%, with the consensus EPS estimate being $0.65.While investors scrutinize revenue and earnings changes year-over-year and how they compare with W ...

Group 1: Earnings Performance - South Plains Financial (SPFI) reported quarterly earnings of $0.72 per share, exceeding the Zacks Consensus Estimate of $0.65 per share, and up from $0.64 per share a year ago, representing an earnings surprise of 10.77% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - The revenue for the quarter ended March 2025 was $49.15 million, surpassing the Zacks Consensus Estimate by 1.24%, and up from $46.78 million year-over-year [2] Group 2: Stock Performance and Outlook - South Plains Financial shares have declined about 5% since the beginning of the year, compared to the S&P 500's decline of 8.6% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.69 on revenues of $51.2 million, and for the current fiscal year, it is $2.85 on revenues of $204.3 million [7] Group 3: Industry Context - The Banks - Southeast industry, to which South Plains Financial belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]