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 ...

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 notable $0.14 per share after-tax differential in the mortgage servicing rights fair value adjustment [21][24] - Net interest income remained unchanged at $38,500,000, 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 [21][22] - Deposits increased by $171,600,000 to $3,790,000,000, with the cost of deposits decreasing to 219 basis points from 229 basis points in the linked quarter [22][23] Business Line Data and Key Metrics Changes - Loans held for investment increased by $20,800,000 or 2.7% annualized to $3,080,000,000, driven by growth in commercial owner-occupied real estate loans and commercial goods and services loans [14] - The indirect auto loan portfolio grew by $7,000,000 to $243,000,000, with a decline in loans past due by more than 30 days to 41 basis points from 47 basis points [17][18] - Non-interest income decreased to $10,600,000 from $13,300,000 in the linked quarter, primarily due to a drop in mortgage banking revenues [19][20] Market Data and Key Metrics Changes - Loans in major metropolitan markets decreased by $18,000,000 to $1,040,000,000, with expectations of elevated early payments on loans in the first half of the year [15] - 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 [16] - 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 [19] Company Strategy and Development Direction - The company is focused on organic growth and selectively adding to its team across major metropolitan and rural markets [10] - A $15,000,000 stock repurchase program was authorized, with $8,300,000 spent to repurchase 250,000 shares in the first quarter, indicating a strategy to return value to shareholders [11] - The company remains cautious regarding M&A activity due to current market uncertainty but is positioned to capitalize on opportunities as they arise [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's credit quality and its ability to perform well through economic downturns, despite potential recession risks [6][10] - The company believes it has the liquidity, capital, and team to take advantage of opportunities during economic difficulties [9] - Management expects the economic growth in Texas to remain resilient, although they are aware of the uncertainties created by external factors [19] Other Important Information - The allowance for credit losses to total loans held for investment ratio was 1.4%, with a recorded provision for credit losses of $420,000 in the first quarter [23] - Non-interest expense increased to $33,000,000 from $29,900,000 in the linked quarter, with expectations that this level will be a good run rate for the remainder of the year [24][25] - Tangible common equity to tangible assets ratio was 9.64%, with tangible book value per share increasing to $26.5 [26] Q&A Session Summary Question: On deposit costs and potential for further reduction - Management acknowledged that while significant progress has been made in reducing deposit costs, there is still room for further reductions in certain accounts [31][33] Question: Loan yields and margin expansion potential - Management indicated that while there may be some room for margin expansion, it will depend on overall liquidity and loan funding conditions [35][38] Question: Elevated loan payoffs and their impact - Management noted that payoffs were approximately $10,000,000 higher in the first quarter compared to the previous quarter, but they remain confident in their production and pipeline [41][42] Question: Current hiring landscape and mortgage hiring outlook - Management stated they are actively hiring but are selective, focusing on finding the right talent rather than increasing headcount indiscriminately [48][50] Question: Concentration of loan portfolio in energy and growth in the quarter - Management confirmed that approximately 4% of the loan portfolio is concentrated in energy, primarily driven by energy service businesses [60][63]

Financial Performance - Net interest income for Q1 2025 was $38.5 million, unchanged from Q4 2024, and up from $35.4 million in Q1 2024[4] - Net income for Q1 2025 was $12.3 million, down from $16.5 million in Q4 2024, but up from $10.9 million in Q1 2024[6] - Noninterest income for Q1 2025 was $10.6 million, down from $13.3 million in Q4 2024, primarily due to a decrease in mortgage banking revenues[8] - Noninterest expense increased to $33.0 million in Q1 2025, compared to $29.9 million in Q4 2024, largely due to higher personnel expenses[9] - Basic net earnings per share for Q1 2025 were $0.75, compared to $1.01 in Q4 2024, a decrease of 25.7%[26] - Net income for Q1 2025 was $12,294,000, down 25.5% from $16,497,000 in Q4 2024[26] - The pre-tax, pre-provision income for the quarter ended March 31, 2025, was $16,122,000, down from $21,919,000 for the quarter ended December 31, 2024, a decrease of 26.5%[34] Asset and Loan Growth - Loans held for investment increased to $3.08 billion as of March 31, 2025, a 2.7% annualized increase from Q4 2024[10] - Total assets increased to $4,405,209,000 in Q1 2025 from $4,232,239,000 in Q4 2024, reflecting a growth of 4.1%[26] - Total loans held for investment rose to $3,075,860,000 in Q1 2025, up from $3,055,054,000 in Q4 2024, an increase of 0.7%[26] - As of March 31, total assets amounted to $4,405,209,000, compared to $4,423,232,000 as of December 31[30] - Net loans held for investment were $3,032,892,000, a decrease from $3,011,817,000[30] - Total assets as of March 31, 2025, were $4,405,209,000, an increase from $4,232,239,000 as of December 31, 2024, indicating a growth of 4.07%[34] Deposit Trends - Total deposits rose to $3.79 billion, a 4.7% increase from $3.62 billion at the end of Q4 2024[11] - Total deposits as of March 31, 2025, were $3,792,519,000, up from $3,620,876,000 as of December 31, 2024, indicating a growth of 4.74%[34] - Demand deposits decreased to $934,775 thousand from $958,334 thousand year-over-year[28] Nonperforming Assets and Credit Quality - Nonperforming assets to total assets ratio improved to 0.16% as of March 31, 2025, down from 0.58% at the end of Q4 2024[14] - Nonperforming loans decreased significantly to $6,467,000 in Q1 2025 from $24,023,000 in Q4 2024, a reduction of 73.1%[26] - The provision for credit losses for the quarter ended March 31, 2025, was $420,000, a significant decrease from $1,200,000 for the quarter ended December 31, 2024[34] Equity and Book Value - The tangible book value per share increased to $26.05 as of March 31, 2025, up from $25.40 at the end of Q4 2024[6] - Book value per share increased to $27.33 as of March 31, 2025, from $26.67 as of December 31, 2024, reflecting a growth of 2.47%[34] - Tangible common equity increased to $422,859,000 as of March 31, 2025, from $417,914,000 as of December 31, 2024, marking a rise of 0.47%[34] - The total stockholders' equity to total assets ratio was 10.07% as of March 31, 2025, compared to 10.37% as of December 31, 2024, showing a decline of 0.30 percentage points[34] Interest Income and Expense - Interest income for Q1 2025 was $59,922,000, a decrease of 2.3% from $61,324,000 in Q4 2024[26] - Total interest income reached $59,922,258, up from $58,727,000, indicating a year-over-year increase of about 2.03%[31] - Total interest-earning assets increased to $4,125,130 thousand, generating interest income of $60,142 thousand, with a yield of 5.91%[28] - Total interest-bearing liabilities rose to $2,854,619 thousand, with interest expense of $21,395 thousand, resulting in an average yield of 3.04%[28] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to enhance service offerings and operational efficiency[31]