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]

South Plains Financial First Quarter 2025 Earnings Presentation April 24, 2025 Safe Harbor Statement and Other Disclosures FORWARD-LOOKING STATEMENTS This presentation contains, and future oral and written statements of South Plains Financial, Inc. ("South Plains", "SPFI", or the "Company") and City Bank ("City Bank" or the "Bank") may contain, statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-l ...