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South Plains (SPFI) Announces New $10M Share Repurchase Plan
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South Plains Financial, Inc. (SPFI - Free Report) announced a new share repurchase program. The plan authorizes the company to buy back shares worth $10 million. This plan is set to expire on Feb 21, 2025.
Prior to this, SPFI had announced a share repurchase plan in 2023 worth $15 million. The plan was completely exhausted by fourth-quarter 2023-end as it repurchased a total of 686,000 shares in the prior year.
South Plains’ chief executive officer, Curtis Griffith, stated, “I am very pleased with the momentum in our business highlighted by our strong full year 2023 financial results combined with the many opportunities that we have in front of us to further grow the Bank.”
He also added, “However, we believe that our shares continue to trade below intrinsic value. As a result, our board has authorized a $10.0 million stock repurchase program to buy back our own stock, which we believe is currently the most compelling acquisition that we can make in today’s market.”
Apart from opportunistic share repurchases, SPFI has been regularly paying its dividends to enhance shareholder value. Last month, the company announced a quarterly cash dividend of 13 cents per share. The dividend was paid out on Feb 12, to shareholders of record as of Jan 29.
The latest dividend hike was in October 2022, when the company raised its dividend to 13 cents per share from 12 cents per share. Also, it has increased its dividend payout six times in the past five years. SPFI has a five-year annualized dividend growth of 54.9%. Currently, the firm’s payout ratio is 21% of earnings.
As of Dec 31, 2023, South Plains had a total debt of $63.8 million, while its cash and due from banks, and interest-bearing deposits with banks were $330.2 million. The common equity tier 1 ratio as of Dec 31, 2023, was 16.74%, up from 16.58% as of Dec 31, 2022.
Given its strong balance sheet and solid liquidity position, SPFI is expected to be able to keep stoking investor’s confidence in the stock through sustainable capital distribution activities.
In the past year, shares of SPFI have lost 0.6% compared with the industry’s 0.7% decline.
Last week, Old National Bancorp. (ONB - Free Report) announced a new share repurchase program. Per the plan, the company is authorized to buy back up to $200 million worth of shares. The program will be carried through Feb 28, 2025.
Previously, ONB announced share repurchase programs in 2023 and 2022, each worth $200 million. The company didn’t repurchase any shares in 2023 due to unfavorable market conditions.
Valley National Bancorp (VLY - Free Report) announced a new share repurchase program. The plan authorizes the company to buy back up to 25 million shares. The plan will be effective from Apr 26, 2024, and is set to expire on Apr 26, 2026.
Prior to this, VLY had announced a repurchase plan in 2022 for 25 million shares. The plan will expire on Apr 25, 2024. As of Dec 31, 2023, almost 24.7 million shares remained available under the authorization.
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South Plains (SPFI) Announces New $10M Share Repurchase Plan
South Plains Financial, Inc. (SPFI - Free Report) announced a new share repurchase program. The plan authorizes the company to buy back shares worth $10 million. This plan is set to expire on Feb 21, 2025.
Prior to this, SPFI had announced a share repurchase plan in 2023 worth $15 million. The plan was completely exhausted by fourth-quarter 2023-end as it repurchased a total of 686,000 shares in the prior year.
South Plains’ chief executive officer, Curtis Griffith, stated, “I am very pleased with the momentum in our business highlighted by our strong full year 2023 financial results combined with the many opportunities that we have in front of us to further grow the Bank.”
He also added, “However, we believe that our shares continue to trade below intrinsic value. As a result, our board has authorized a $10.0 million stock repurchase program to buy back our own stock, which we believe is currently the most compelling acquisition that we can make in today’s market.”
Apart from opportunistic share repurchases, SPFI has been regularly paying its dividends to enhance shareholder value. Last month, the company announced a quarterly cash dividend of 13 cents per share. The dividend was paid out on Feb 12, to shareholders of record as of Jan 29.
The latest dividend hike was in October 2022, when the company raised its dividend to 13 cents per share from 12 cents per share. Also, it has increased its dividend payout six times in the past five years. SPFI has a five-year annualized dividend growth of 54.9%. Currently, the firm’s payout ratio is 21% of earnings.
As of Dec 31, 2023, South Plains had a total debt of $63.8 million, while its cash and due from banks, and interest-bearing deposits with banks were $330.2 million. The common equity tier 1 ratio as of Dec 31, 2023, was 16.74%, up from 16.58% as of Dec 31, 2022.
Given its strong balance sheet and solid liquidity position, SPFI is expected to be able to keep stoking investor’s confidence in the stock through sustainable capital distribution activities.
In the past year, shares of SPFI have lost 0.6% compared with the industry’s 0.7% decline.
Image Source: Zacks Investment Research
Currently, SPFI carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Other Banks Taking Similar Steps
Last week, Old National Bancorp. (ONB - Free Report) announced a new share repurchase program. Per the plan, the company is authorized to buy back up to $200 million worth of shares. The program will be carried through Feb 28, 2025.
Previously, ONB announced share repurchase programs in 2023 and 2022, each worth $200 million. The company didn’t repurchase any shares in 2023 due to unfavorable market conditions.
Valley National Bancorp (VLY - Free Report) announced a new share repurchase program. The plan authorizes the company to buy back up to 25 million shares. The plan will be effective from Apr 26, 2024, and is set to expire on Apr 26, 2026.
Prior to this, VLY had announced a repurchase plan in 2022 for 25 million shares. The plan will expire on Apr 25, 2024. As of Dec 31, 2023, almost 24.7 million shares remained available under the authorization.