South Plains Financial CEO sells $3.3 million in stock

Curtis C. Griffith, Chairman and CEO of South Plains Financial, Inc. (NASDAQ:SPFI), a regional bank with a market capitalization of $539 million, recently sold 100,000 shares of the company’s common stock in a private transaction. The shares were sold at $33 each, totaling $3.3 million, close to InvestingPro’s Fair Value estimate, suggesting the transaction occurred at a reasonable price point. This transaction was part of a broader strategy to provide liquidity for Griffith’s agricultural-related business investments.

In addition to the sale, Griffith also repurchased 250,000 shares from the issuer in a privately negotiated transaction under the company’s stock repurchase program, amounting to $8.25 million. This repurchase was intended to support the capital needs of his businesses over the medium term.

Following these transactions, Griffith holds 457,240 shares directly and has indirect ownership of shares held in various trusts and by his spouse, maintaining significant alignment with shareholder interests in the company, which currently trades at a P/E ratio of 10.8x.

In other recent news, South Plains Financial has reported a strong performance for the third quarter of 2024. The company exceeded analyst expectations with an earnings per share of $0.96, surpassing the forecast of $0.68, and reported revenue of $51.87 million, higher than the anticipated $49.41 million. In addition to these financial results, South Plains Financial has initiated a $15 million stock buyback program, authorized by the board of directors, which is set to continue until February 2026 unless modified. The company has also announced a 7% increase in its quarterly dividend to $0.15 per share, marking its 22nd consecutive quarterly dividend.

Furthermore, South Plains Financial has been managing its loan portfolio with a focus on maintaining credit quality amid a normalizing credit environment. The firm reported a 10% annualized increase in deposits, reflecting strong customer trust. Looking forward, the company expects flat loan growth in the fourth quarter but anticipates acceleration in 2025 as interest rates decline. Additionally, the company has been recognized for holding a leading deposit share in several Texas and New Mexico markets, emphasizing its strong community-based deposit franchise. These developments highlight South Plains Financial’s strategic initiatives and robust financial health.

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