South Plains Financial, Inc. (NASDAQ:SPFI) has reported its financial results for the fourth quarter and year ended December 31, 2024. The company's net income for the fourth quarter of 2024 was $16.5 million, compared to $11.2 million for the third quarter of 2024 and $10.3 million for the fourth quarter of 2023. This shows a significant increase in net income compared to the previous periods.
Diluted earnings per share for the fourth quarter of 2024 was $0.96, compared to $0.66 for the third quarter of 2024 and $0.61 for the fourth quarter of 2023. The increase in diluted earnings per share reflects improved profitability.
The average cost of deposits for the fourth quarter of 2024 was 229 basis points, compared to 247 basis points for the third quarter of 2024 and 224 basis points for the fourth quarter of 2023. This indicates a decrease in the average cost of deposits from the previous periods.
Net interest margin, calculated on a tax-equivalent basis, was 3.75% for the fourth quarter of 2024, compared to 3.65% for the third quarter of 2024 and 3.52% for the fourth quarter of 2023. The net interest margin has shown a consistent improvement over the previous quarters.
The return on average assets for the fourth quarter of 2024 was 1.53% annualized, compared to 1.05% annualized for the third quarter of 2024 and 0.99% annualized for the fourth quarter of 2023, indicating an upward trend in return on assets.
The company's tangible book value (non-GAAP) per share was $25.40 as of December 31, 2024, compared to $25.75 as of September 30, 2024, and $23.47 as of December 31, 2023. This also shows an improvement in tangible book value per share compared to the previous periods.
Full-year 2024 highlights include a net income of $49.7 million, compared to $62.7 million in 2023, and diluted earnings per share of $2.92 in 2024, compared to $3.62 in 2023. The decrease in net income and diluted earnings per share for the full year reflects the company's performance over the year.
The company's loans held for investment grew $40.9 million, or 1.4%, during 2024, and total assets were $4.23 billion at December 31, 2024, compared to $4.20 billion at December 31, 2023.
Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, expressed satisfaction with the performance and highlighted the company's focus on delivering strong financial results. He also mentioned a growing level of optimism across the customer base, translating into the strongest new business production pipeline seen in more than two years, which bodes positively for the year ahead.
The market has reacted to these announcements by moving the company's shares 5.3% to a price of $36.74. For more information, read the company's full 8-K submission here.
