South Plains Financial initiates $15 million stock buyback

LUBBOCK, Texas - South Plains Financial, Inc. (NASDAQ:SPFI), commonly known as South Plains, has launched a new stock repurchase program authorizing the buyback of up to $15 million of its common stock. The program, announced by the company’s board of directors, is set to remain active until February 21, 2026, unless the allocated funds are used up or the board decides to terminate or extend the program. The announcement comes as the company’s stock has shown strong momentum, delivering a 33% return over the past year. According to InvestingPro analysis, the stock is currently trading near its Fair Value, with a market capitalization of $567 million.

The repurchases will be executed through various means, including open market transactions and privately negotiated deals, adhering to Rule 10b-18 of the Securities Exchange Act of 1934, as well as other legal requirements. The company may also engage in repurchases under a Rule 10b5-1 trading plan, which allows for stock buybacks even when trading blackout periods or other regulatory restrictions are in place. InvestingPro data reveals that South Plains has maintained a strong dividend growth track record, having raised its dividend for six consecutive years, with a 15% dividend growth in the last twelve months.

South Plains has stated that the repurchase initiative will be influenced by several factors, such as stock performance, market conditions, regulatory requirements, and fund availability. However, the company is not obligated to repurchase any specific number or amount of shares and may begin, suspend, or terminate the buybacks at its discretion without prior notice.

This repurchase program does not guarantee the exact number or value of shares that South Plains will buy back. The timing and amount of repurchases will be determined by the company based on various factors, including the company’s stock price and general market conditions.

South Plains Financial, Inc. is the bank holding company for City Bank, a Texas state-chartered bank. City Bank operates in several Texas markets, including Dallas, El Paso, Houston, the Permian Basin, College Station, and the Ruidoso market in New Mexico. The company offers a range of financial services to small and medium-sized businesses and individuals, including commercial and retail banking, investment, trust, and mortgage services. InvestingPro analysis indicates the company maintains a "GOOD" overall financial health score, with four analysts recently revising their earnings estimates upward for the upcoming period. For comprehensive insights into South Plains’ financial metrics and growth potential, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.

The information for this article is based on a press release statement from South Plains Financial, Inc.

In other recent news, South Plains Financial Inc . reported impressive financial results for the third quarter of 2024, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.96, significantly higher than the projected $0.68. Additionally, revenue reached $51.87 million, exceeding the anticipated $49.41 million. These results highlight strong financial performance, with net interest income rising to $37.3 million and a slight increase in net interest margin to 3.65%.

In terms of analyst activity, there were no specific upgrades or downgrades mentioned, but the positive earnings report could influence future assessments. The company also noted a 10% annualized increase in deposits, reflecting strong customer trust. Looking ahead, South Plains Financial anticipates flat loan growth in the fourth quarter, with expectations for acceleration in 2025 as interest rates decline. The company remains optimistic about economic conditions in Texas and New Mexico. These developments indicate a robust performance by South Plains Financial, positioning it well for future growth.

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