South Plains Financial, Inc. Reports Third Quarter 2024 Financial Results

Core Viewpoint - South Plains Financial, Inc. reported its financial results for the third quarter of 2024, showing stable net income and a slight decrease in loan balances, while maintaining strong capital ratios and a positive outlook for future loan growth [1][2][3]. Financial Performance - Net income for Q3 2024 was $11.2 million, slightly up from $11.1 million in Q2 2024 but down from $13.5 million in Q3 2023 [2]. - Diluted earnings per share remained stable at $0.66 compared to Q2 2024 but decreased from $0.78 in Q3 2023 [2]. - Net interest income increased to $37.3 million from $35.9 million in Q2 2024 and $35.7 million in Q3 2023 [4]. - Noninterest income decreased to $10.6 million from $12.7 million in Q2 2024 and $12.3 million in Q3 2023 [7]. Asset Quality - Nonperforming assets to total assets ratio was 0.59% as of September 30, 2024, up from 0.57% in Q2 2024 and significantly higher than 0.12% in Q3 2023 [12]. - The provision for credit losses was $495 thousand, down from $1.8 million in Q2 2024 and a negative provision of $700 thousand in Q3 2023 [11]. Loan Portfolio - Loans held for investment decreased to $3.04 billion as of September 30, 2024, from $3.09 billion in Q2 2024, but increased from $2.99 billion in Q3 2023 [9]. - The decrease was attributed to the payoff of short-term loans and a decline in consumer auto loans [9]. Deposits and Borrowings - Total deposits increased to $3.72 billion as of September 30, 2024, from $3.62 billion in Q2 2024 and the same amount in Q3 2023 [10]. - Noninterest-bearing deposits represented 26.9% of total deposits as of September 30, 2024 [10]. Capital Ratios - The consolidated total risk-based capital ratio was 17.61%, significantly exceeding the minimum regulatory levels [2]. - Book value per share increased to $27.04 as of September 30, 2024, from $25.45 in Q2 2024 [13]. Management Commentary - The CEO expressed confidence in the bank's performance, highlighting a strong business production pipeline and easing deposit cost pressures [3].