Mikella D. Newsom
About Mikella D. Newsom
Mikella D. Newsom is Chief Risk Officer of South Plains Financial, Inc. (SPFI) since 2019 and Secretary since 2013; she has served as Chief Risk Officer of City Bank since 2015 and previously held Senior Vice President, Chief Financial Officer, and Treasurer roles through 2015. She has more than 25 years with the Bank and its predecessors, holds a B.S. in agricultural economics from Texas Tech University (1996), and is 51 years old . Company performance context for incentive frameworks in 2024: net income was $49.7 million, ROA 1.17%, ROE 11.75%, and efficiency ratio 65.07% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| South Plains Financial, Inc. | Chief Risk Officer | 2019–present | Enterprise risk management oversight for holding company |
| South Plains Financial, Inc. | Secretary | 2013–present | Corporate governance and board administration |
| City Bank (subsidiary) | Chief Risk Officer | 2015–present | Bank-level risk management leadership |
| SPFI/City Bank | SVP; Chief Financial Officer; Treasurer | Through 2015 | Financial management and reporting leadership |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Texas Bankers Association Community Bankers Council | Vice-Chair | Current | Industry advocacy and community banking policy input |
| University Medical Center (Lubbock) | Board of Managers | Current | Healthcare system governance in SPFI’s local market |
| Frenship Independent School District | Board of Trustees | Prior service | Community education governance; local stakeholder engagement |
Fixed Compensation
- Not disclosed for Ms. Newsom; SPFI’s DEF 14A provides detailed compensation only for Named Executive Officers (NEOs), which do not include Ms. Newsom .
Performance Compensation
- Program framework (company-wide for execs): annual cash incentives linked to profitability (net income vs budget), bank efficiency ratio, and asset quality; committee retains discretion and caps exist on payouts . Specific targets/weightings published for NEOs; no individual metrics disclosed for Ms. Newsom .
Equity Ownership & Alignment
| Metric | FY 2023 | FY 2025 |
|---|---|---|
| Beneficial ownership (shares) | 108,806 | — (not disclosed for Ms. Newsom in 2025 table) |
| % of shares outstanding | *% (less than 1%) | — |
| Pledged shares | Not disclosed for Ms. Newsom; 2025 footnotes cite pledges for other executives, not Ms. Newsom | |
| Hedging/pledging policy | Hedging strongly discouraged; pledging discouraged; preclearance required |
Notes:
- 2025 beneficial ownership table lists directors and NEOs; Ms. Newsom is not included and thus no updated figure is provided .
Employment Terms
- Employment agreement: Not disclosed for Ms. Newsom (agreements published for certain NEOs, e.g., Cory T. Newsom) .
- Clawback: Company adopted an Incentive Award Recoupment Policy effective Oct 2, 2023, enabling recovery of excess incentive-based compensation over a 3-year lookback in the event of an accounting restatement pursuant to SEC Rule 10D-1 and Nasdaq Listing Rule 5608 .
- Insider Trading Policy: Preclearance required for hedging and pledging; ownership in margin accounts prohibited .
- Related party context: SPFI discloses ordinary-course transactions and clarifies no familial relationship between Cory T. Newsom (President) and Mikella D. Newsom (CRO) .
Performance & Track Record
- Company results in Ms. Newsom’s CRO tenure (contextual): FY 2024 net income $49.7M (down vs FY 2023), ROA 1.17%, ROE 11.75%, net interest margin 3.65%, efficiency ratio 65.07%, and nonperforming assets to total assets 0.58% . These metrics reflect the financial environment and risk landscape overseen at the enterprise level.
- Operational drivers: Noninterest income decreased by $31.2M in FY 2024 (loss of prior year’s gain on sale of subsidiary; mortgage banking dynamics), while noninterest expense decreased by $7.4M (reduction in salaries/benefits and other categories) .
Risk Indicators & Red Flags
- Pledging: Policy discourages pledging; specific pledged shares noted for certain executives, not for Ms. Newsom (no disclosure for her) .
- Clawback policy implemented and in force .
- Related party lending: governed by board approvals; no problematic loans disclosed; non-familial relationship note between Cory and Mikella reduces conflict-of-interest concern .
Investment Implications
- Compensation transparency: As a non-NEO, Ms. Newsom’s specific pay mix and vesting schedules are not disclosed, limiting direct pay-for-performance analysis; however, company-wide incentive frameworks tie bonuses to profitability, efficiency, and asset quality, aligning executive incentives to bank fundamentals .
- Alignment and retention: Historical beneficial ownership for Ms. Newsom shows skin-in-the-game (<1% in 2023), and policies discourage hedging/pledging, reducing misalignment risks; absence of disclosed pledging for her is positive but not definitive given non-NEO disclosure limits .
- Execution risk: 2024 deterioration in ROA/ROE and efficiency ratio versus 2023 underscores a tighter operating environment; CRO oversight is central as nonperforming assets increased, making continued risk management execution a key lever for valuation and capital allocation outcomes .
- Governance comfort: Formal clawback policy and insider trading constraints support investor alignment, and clear non-familial relationship with the President reduces perceived interlocks .