Q2 2024 South Plains Financial Inc Earnings Call Transcript
Key Points
- South Plains Financial Inc (SPFI) delivered second-quarter diluted earnings per share of $0.66, up from $0.64 in the first quarter of 2024.
- The company experienced robust organic loan growth, particularly in direct energy loans, seasonal agriculture-related loans, and single-family property loans.
- The net interest margin (NIM) expanded to 3.63% in the second quarter, up from 3.56% in the linked quarter.
- The efficiency ratio improved to 66.7% from 67.9% in the previous quarter, indicating better cost management.
- Tangible book value per share increased to $24.15 at June 30, 2024, from $23.56 at March 31, 2024.
- Customer deposits saw a modest reduction as the company focused on managing deposit costs.
- A substandard multi-family property loan in Houston was moved to non-accrual status, increasing non-performing loans to $23.5 million.
- The indirect auto loan portfolio declined by $19.7 million, reflecting cautious credit quality management.
- Non-interest expense rose to $32.6 million in the second quarter, up from $31.9 million in the linked quarter.
- The company expects net interest margin expansion to moderate in the second half of the year due to potential increases in deposit costs.
Good afternoon, ladies and gentlemen, and welcome to the South Plains Financial Inc. second-quarter 2024 earnings conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions with instructions to follow at that time. As reminder, this conference call is being recorded.
I would now like to turn the call over to Mr. Steve Crockett, Chief Financial Officer and Treasurer of South Plains Financial. Please go ahead, sir.
Thank you, operator, and good afternoon, everyone. We appreciate you joining our earnings conference call. With me here today are Curtis Griffith, our Chairman and Chief Executive Officer; Cory Newsom, our President; and Brent Bates, our Chief Credit Officer. The related earnings press release and earnings presentation are available on our news and events section of our website, spfi.bank.
Before we begin, I'd like to remind everyone that this call may
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