South Plains Financial, Inc. Reports Second Quarter 2025 Financial Results
South Plains Financial (NASDAQ:SPFI) reported strong Q2 2025 financial results with net income of $14.6 million, up from $12.3 million in Q1 2025 and $11.1 million in Q2 2024. The company achieved diluted EPS of $0.86, compared to $0.72 in Q1 2025.
Key highlights include net interest margin improvement to 4.07%, a decrease in average deposit costs to 214 basis points, and return on average assets of 1.34%. The bank's loan portfolio grew to $3.10 billion, while deposits stood at $3.74 billion. Asset quality remained strong with the ratio of nonperforming assets to total assets at 0.25%.
The company maintains healthy capital levels with a total risk-based capital ratio of 18.17% and is actively expanding its lending capabilities, particularly in the Dallas market through the recruitment of experienced commercial lenders.
South Plains Financial (NASDAQ:SPFI) ha riportato solidi risultati finanziari nel secondo trimestre del 2025 con un utile netto di 14,6 milioni di dollari, in crescita rispetto ai 12,3 milioni del primo trimestre 2025 e agli 11,1 milioni del secondo trimestre 2024. La società ha raggiunto un utile per azione diluito di 0,86 dollari, rispetto a 0,72 dollari nel primo trimestre 2025.
Tra i punti salienti si evidenzia un miglioramento del margine di interesse netto al 4,07%, una riduzione del costo medio dei depositi a 214 punti base e un rendimento medio delle attività dell'1,34%. Il portafoglio prestiti della banca è cresciuto fino a 3,10 miliardi di dollari, mentre i depositi si sono attestati a 3,74 miliardi. La qualità degli asset è rimasta solida con un rapporto tra attività non performanti e attività totali dello 0,25%.
L'azienda mantiene livelli di capitale sani con un rapporto totale di capitale basato sul rischio del 18,17% ed è attivamente impegnata nell'espansione delle capacità di erogazione di prestiti, in particolare nel mercato di Dallas, attraverso l'assunzione di esperti finanziatori commerciali.
South Plains Financial (NASDAQ:SPFI) reportó sólidos resultados financieros en el segundo trimestre de 2025 con un ingreso neto de 14,6 millones de dólares, superior a los 12,3 millones del primer trimestre de 2025 y a los 11,1 millones del segundo trimestre de 2024. La compañía logró un beneficio por acción diluido de 0,86 dólares, en comparación con 0,72 dólares en el primer trimestre de 2025.
Los aspectos destacados incluyen una mejora en el margen neto de interés al 4,07%, una disminución en el costo promedio de los depósitos a 214 puntos básicos y un retorno sobre activos promedio del 1,34%. La cartera de préstamos del banco creció hasta 3,10 mil millones de dólares, mientras que los depósitos se situaron en 3,74 mil millones. La calidad de los activos se mantuvo sólida con una proporción de activos no productivos respecto al total de activos del 0,25%.
La compañía mantiene niveles saludables de capital con una relación total de capital basado en riesgos del 18,17% y está expandiendo activamente sus capacidades de préstamo, especialmente en el mercado de Dallas mediante la contratación de prestamistas comerciales experimentados.
South Plains Financial (NASDAQ:SPFI)는 2025년 2분기에 순이익 1,460만 달러를 기록하며 견조한 실적을 발표했습니다. 이는 2025년 1분기의 1,230만 달러와 2024년 2분기의 1,110만 달러에서 증가한 수치입니다. 회사는 희석 주당순이익(EPS) 0.86달러를 달성했으며, 이는 2025년 1분기의 0.72달러와 비교됩니다.
주요 내용으로는 순이자마진이 4.07%로 개선되었고, 평균 예금 비용이 214 베이시스 포인트로 감소했으며, 평균 자산 수익률은 1.34%를 기록했습니다. 은행의 대출 포트폴리오는 31억 달러로 성장했으며, 예금은 37억 4천만 달러에 달했습니다. 자산 건전성은 총자산 대비 부실자산 비율이 0.25%로 견고하게 유지되었습니다.
회사는 총 위험기준 자기자본비율 18.17%로 건전한 자본 수준을 유지하고 있으며, 특히 댈러스 시장에서 경험 많은 상업 대출 인력을 채용하여 대출 역량을 적극적으로 확장하고 있습니다.
South Plains Financial (NASDAQ:SPFI) a annoncé de solides résultats financiers pour le deuxième trimestre 2025 avec un bénéfice net de 14,6 millions de dollars, en hausse par rapport à 12,3 millions au premier trimestre 2025 et 11,1 millions au deuxième trimestre 2024. La société a réalisé un bénéfice dilué par action de 0,86 dollar, contre 0,72 dollar au premier trimestre 2025.
Les points clés incluent une amélioration de la marge nette d'intérêt à 4,07%, une baisse du coût moyen des dépôts à 214 points de base, et un rendement moyen des actifs de 1,34%. Le portefeuille de prêts de la banque a atteint 3,10 milliards de dollars, tandis que les dépôts s'élevaient à 3,74 milliards. La qualité des actifs est restée solide avec un ratio d'actifs non performants sur actifs totaux de 0,25%.
L'entreprise maintient des niveaux de capital sains avec un ratio total de capital basé sur les risques de 18,17% et développe activement ses capacités de prêt, notamment sur le marché de Dallas grâce au recrutement de prêteurs commerciaux expérimentés.
South Plains Financial (NASDAQ:SPFI) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Nettoeinkommen von 14,6 Millionen US-Dollar, gegenüber 12,3 Millionen im ersten Quartal 2025 und 11,1 Millionen im zweiten Quartal 2024. Das Unternehmen erzielte ein verwässertes Ergebnis je Aktie von 0,86 US-Dollar im Vergleich zu 0,72 US-Dollar im ersten Quartal 2025.
Wichtige Highlights sind die Verbesserung der Nettozinsmarge auf 4,07%, eine Senkung der durchschnittlichen Einlagenkosten auf 214 Basispunkte sowie eine Rendite auf das durchschnittliche Vermögen von 1,34%. Das Kreditportfolio der Bank wuchs auf 3,10 Milliarden US-Dollar, während die Einlagen bei 3,74 Milliarden lagen. Die Vermögensqualität blieb mit einem Verhältnis von notleidenden Vermögenswerten zu Gesamtvermögen von 0,25% stabil.
Das Unternehmen hält gesunde Kapitalquoten mit einer Gesamtkapitalquote auf Risikobasis von 18,17% und erweitert aktiv seine Kreditvergabe, insbesondere im Dallas-Markt durch die Rekrutierung erfahrener Firmenkreditgeber.
- Net income increased 31.5% year-over-year to $14.6 million
- Net interest margin improved to 4.07%, up from 3.63% year-over-year
- Average cost of deposits decreased to 214 basis points from 243 basis points year-over-year
- Tangible book value per share increased to $26.70 from $24.15 year-over-year
- Strong capital position with 18.17% total risk-based capital ratio
- Nonperforming assets ratio improved to 0.25% from 0.57% year-over-year
- Total deposits decreased by $53.6 million (1.4%) quarter-over-quarter
- Provision for credit losses increased to $2.5 million from $420,000 in Q1 2025
- Noninterest expense increased by $971,000 year-over-year
Insights
South Plains delivered strong Q2 results with 32% YoY earnings growth, margin expansion, and stable loan portfolio despite high payoffs.
South Plains Financial reported a solid second quarter with
The bank's net interest margin expanded significantly to
Deposit costs are trending favorably, with average cost decreasing to
Credit quality metrics showed mixed signals. The bank increased its provision for loan losses to
Capital levels continued strengthening with tangible book value reaching
Management's strategic focus on expanding their lending capabilities, particularly in the Dallas market where they've recruited new commercial lenders, suggests a deliberate growth strategy. While total loans increased only modestly by
LUBBOCK, Texas, July 16, 2025 (GLOBE NEWSWIRE) -- South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the “Company”), the parent company of City Bank (“City Bank” or the “Bank”), today reported its financial results for the quarter ended June 30, 2025.
Second Quarter 2025 Highlights
- Net income for the second quarter of 2025 was
$14.6 million , compared to$12.3 million for the first quarter of 2025 and$11.1 million for the second quarter of 2024. - Diluted earnings per share for the second quarter of 2025 was
$0.86 , compared to$0.72 for the first quarter of 2025 and$0.66 for the second quarter of 2024. - Average cost of deposits for the second quarter of 2025 was 214 basis points, compared to 219 basis points for the first quarter of 2025 and 243 basis points for the second quarter of 2024.
- Net interest margin, on a tax-equivalent basis, was
4.07% for the second quarter of 2025, compared to3.81% for the first quarter of 2025 and3.63% for the second quarter of 2024. - Return on average assets for the second quarter of 2025 was
1.34% , compared to1.16% for the first quarter of 2025 and1.07% for the second quarter of 2024. - Tangible book value (non-GAAP) per share was
$26.70 as of June 30, 2025, compared to$26.05 as of March 31, 2025 and$24.15 as of June 30, 2024. - The consolidated total risk-based capital ratio, common equity tier 1 risk-based capital ratio, and tier 1 leverage ratio at June 30, 2025 were
18.17% ,13.86% , and12.12% , respectively.
Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “We delivered solid second quarter results highlighted by steady margin expansion, continued loan growth despite high levels of loan payoffs, which were expected, and healthy capital levels that continued to build through the quarter. Additionally, we believe the credit quality of our loan portfolio remained solid through the quarter. We believe that we are in a strong position to take advantage of opportunities as they present themselves and are pursuing a strategy to increase the assets of the Bank primarily focused on expanding our lending capabilities. Our community-based deposit franchise continues to provide a stable, lower-cost funding source for loan growth across our markets and our team has done a terrific job growing our loan portfolio over the last five years. We believe that we have opportunities to accelerate that growth by further expanding our lending platform and adding experienced commercial lenders who share our culture and values, and who can bring high quality customer relationships to the Bank. We recruited several experienced lenders in the Dallas market during the second quarter and will continue to add talent in the quarters to come as we expand our reach and continue to work to take market share.”
Results of Operations, Quarter Ended June 30, 2025
Net Interest Income
Net interest income was
Interest income was
Interest expense was
Noninterest Income and Noninterest Expense
Noninterest income was
Noninterest expense was
Loan Portfolio and Composition
Loans held for investment were
Deposits and Borrowings
Deposits totaled
Asset Quality
The Company recorded a provision for credit losses in the second quarter of 2025 of
The ratio of allowance for credit losses to loans held for investment was
The ratio of nonperforming assets to total assets was
Capital
Book value per share increased to
Conference Call
South Plains will host a conference call to discuss its second quarter 2025 financial results today, July 16, 2025, at 5:00 p.m., Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-9716 (international callers please dial 1-201-493-6779) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call and conference materials will be available on the Company’s website at https://www.spfi.bank/news-events/events.
A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed on the investor section of the Company’s website as well as by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671). The pin to access the telephone replay is 13754259. The replay will be available until July 30, 2025.
About South Plains Financial, Inc.
South Plains is the bank holding company for City Bank, a Texas state-chartered bank headquartered in Lubbock, Texas. City Bank is one of the largest independent banks in West Texas and has additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. South Plains provides a wide range of commercial and consumer financial services to small and medium-sized businesses and individuals in its market areas. Its principal business activities include commercial and retail banking, along with investment, trust and mortgage services. Please visit https://www.spfi.bank for more information.
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Pre-Tax, Pre-Provision Income. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.
We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.
A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.
Available Information
The Company routinely posts important information for investors on its web site (under www.spfi.bank and, more specifically, under the News & Events tab at www.spfi.bank/news-events/press-releases). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.
The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this document.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect South Plains’ current views with respect to future events and South Plains’ financial performance. Any statements about South Plains’ expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. South Plains cautions that the forward-looking statements in this press release are based largely on South Plains’ expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond South Plains’ control. Factors that could cause such changes include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from uncertainty in the banking industry as a whole; increased competition for deposits in our market areas and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to a continuation of the elevated interest rate environment or further reductions in interest rates and a resulting decline in net interest income; the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; changes in unemployment rates in the United States and our market areas; adverse changes in customer spending and savings habits; declines in commercial real estate values and prices; a deterioration of the credit rating for U.S. long-term sovereign debt or uncertainty regarding United States fiscal debt, deficit and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events, including as a result of the policies of the current U.S. presidential administration or Congress; the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts and the resulting impact on the Company and its customers; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential costs related to the impacts of climate change; current or future litigation, regulatory examinations or other legal and/or regulatory actions; and changes in applicable laws and regulations. Additional information regarding these risks and uncertainties to which South Plains’ business and future financial performance are subject is contained in South Plains’ most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and other documents South Plains files or furnishes with the SEC from time to time, which are available on the SEC’s website, www.sec.gov. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which South Plains is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Any forward-looking statements presented herein are made only as of the date of this press release, and South Plains does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.
| Contact: | Mikella Newsom, Chief Risk Officer and Secretary |
| (866) 771-3347 | |
| investors@city.bank | |
Source: South Plains Financial, Inc.
| South Plains Financial, Inc. Consolidated Financial Highlights - (Unaudited) (Dollars in thousands, except share data) | |||||||||||||||||||
| As of and for the quarter ended | |||||||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||
| Selected Income Statement Data: | |||||||||||||||||||
| Interest income | $ | 64,135 | $ | 59,922 | $ | 61,324 | $ | 61,640 | $ | 59,208 | |||||||||
| Interest expense | 21,632 | 21,395 | 22,776 | 24,346 | 23,320 | ||||||||||||||
| Net interest income | 42,503 | 38,527 | 38,548 | 37,294 | 35,888 | ||||||||||||||
| Provision for credit losses | 2,500 | 420 | 1,200 | 495 | 1,775 | ||||||||||||||
| Noninterest income | 12,165 | 10,625 | 13,319 | 10,635 | 12,709 | ||||||||||||||
| Noninterest expense | 33,543 | 33,030 | 29,948 | 33,128 | 32,572 | ||||||||||||||
| Income tax expense | 4,020 | 3,408 | 4,222 | 3,094 | 3,116 | ||||||||||||||
| Net income | 14,605 | 12,294 | 16,497 | 11,212 | 11,134 | ||||||||||||||
| Per Share Data (Common Stock): | |||||||||||||||||||
| Net earnings, basic | $ | 0.90 | $ | 0.75 | $ | 1.01 | $ | 0.68 | $ | 0.68 | |||||||||
| Net earnings, diluted | 0.86 | 0.72 | 0.96 | 0.66 | 0.66 | ||||||||||||||
| Cash dividends declared and paid | 0.15 | 0.15 | 0.15 | 0.14 | 0.14 | ||||||||||||||
| Book value | 27.98 | 27.33 | 26.67 | 27.04 | 25.45 | ||||||||||||||
| Tangible book value (non-GAAP) | 26.70 | 26.05 | 25.40 | 25.75 | 24.15 | ||||||||||||||
| Weighted average shares outstanding, basic | 16,231,627 | 16,415,862 | 16,400,361 | 16,386,079 | 16,425,360 | ||||||||||||||
| Weighted average shares outstanding, dilutive | 16,886,993 | 17,065,599 | 17,161,646 | 17,056,959 | 16,932,077 | ||||||||||||||
| Shares outstanding at end of period | 16,230,475 | 16,235,647 | 16,455,826 | 16,386,627 | 16,424,021 | ||||||||||||||
| Selected Period End Balance Sheet Data: | |||||||||||||||||||
| Cash and cash equivalents | $ | 470,496 | $ | 536,300 | $ | 359,082 | $ | 471,167 | $ | 298,006 | |||||||||
| Investment securities | 570,000 | 571,527 | 577,240 | 606,889 | 591,031 | ||||||||||||||
| Total loans held for investment | 3,098,978 | 3,075,860 | 3,055,054 | 3,037,375 | 3,094,273 | ||||||||||||||
| Allowance for credit losses | 45,010 | 42,968 | 43,237 | 42,886 | 43,173 | ||||||||||||||
| Total assets | 4,363,674 | 4,405,209 | 4,232,239 | 4,337,659 | 4,220,936 | ||||||||||||||
| Interest-bearing deposits | 2,740,179 | 2,826,055 | 2,685,366 | 2,720,880 | 2,672,948 | ||||||||||||||
| Noninterest-bearing deposits | 998,759 | 966,464 | 935,510 | 998,480 | 951,565 | ||||||||||||||
| Total deposits | 3,738,938 | 3,792,519 | 3,620,876 | 3,719,360 | 3,624,513 | ||||||||||||||
| Borrowings | 111,799 | 110,400 | 110,354 | 110,307 | 110,261 | ||||||||||||||
| Total stockholders’ equity | 454,074 | 443,743 | 438,949 | 443,122 | 417,985 | ||||||||||||||
| Summary Performance Ratios: | |||||||||||||||||||
| Return on average assets (annualized) | 1.34 | % | 1.16 | % | 1.53 | % | 1.05 | % | 1.07 | % | |||||||||
| Return on average equity (annualized) | 13.05 | % | 11.30 | % | 14.88 | % | 10.36 | % | 10.83 | % | |||||||||
| Net interest margin (1) | 4.07 | % | 3.81 | % | 3.75 | % | 3.65 | % | 3.63 | % | |||||||||
| Yield on loans | 6.99 | % | 6.67 | % | 6.69 | % | 6.68 | % | 6.60 | % | |||||||||
| Cost of interest-bearing deposits | 2.91 | % | 2.93 | % | 3.12 | % | 3.36 | % | 3.33 | % | |||||||||
| Efficiency ratio | 61.11 | % | 66.90 | % | 57.50 | % | 68.80 | % | 66.72 | % | |||||||||
| Summary Credit Quality Data: | |||||||||||||||||||
| Nonperforming loans | $ | 10,463 | $ | 6,467 | $ | 24,023 | $ | 24,693 | $ | 23,452 | |||||||||
| Nonperforming loans to total loans held for investment | 0.34 | % | 0.21 | % | 0.79 | % | 0.81 | % | 0.76 | % | |||||||||
| Other real estate owned | $ | 535 | $ | 600 | $ | 530 | $ | 973 | $ | 755 | |||||||||
| Nonperforming assets to total assets | 0.25 | % | 0.16 | % | 0.58 | % | 0.59 | % | 0.57 | % | |||||||||
| Allowance for credit losses to total loans held for investment | 1.45 | % | 1.40 | % | 1.42 | % | 1.41 | % | 1.40 | % | |||||||||
| Net charge-offs to average loans outstanding (annualized) | 0.06 | % | 0.07 | % | 0.11 | % | 0.11 | % | 0.10 | % | |||||||||
| As of and for the quarter ended | |||||||||||||||||||
| June 30 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||
| Capital Ratios: | |||||||||||||||||||
| Total stockholders’ equity to total assets | 10.41 | % | 10.07 | % | 10.37 | % | 10.22 | % | 9.90 | % | |||||||||
| Tangible common equity to tangible assets (non-GAAP) | 9.98 | % | 9.64 | % | 9.92 | % | 9.77 | % | 9.44 | % | |||||||||
| Common equity tier 1 to risk-weighted assets | 13.86 | % | 13.59 | % | 13.53 | % | 13.25 | % | 12.61 | % | |||||||||
| Tier 1 capital to average assets | 12.12 | % | 12.04 | % | 12.04 | % | 11.76 | % | 11.81 | % | |||||||||
| Total capital to risk-weighted assets | 18.17 | % | 17.93 | % | 17.86 | % | 17.61 | % | 16.86 | % | |||||||||
| (1) Net interest margin is calculated as the annual net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets. | |||||||||||||||||||
| South Plains Financial, Inc. Average Balances and Yields - (Unaudited) (Dollars in thousands) | |||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||
| June 30, 2025 | June 30, 2024 | ||||||||||||||||||
| Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | ||||||||||||||
| Assets | |||||||||||||||||||
| Loans | $ | 3,094,558 | $ | 53,894 | 6.99 | % | $ | 3,082,601 | $ | 50,579 | 6.60 | % | |||||||
| Debt securities - taxable | 508,508 | 4,700 | 3.71 | % | 533,553 | 5,285 | 3.98 | % | |||||||||||
| Debt securities - nontaxable | 152,202 | 1,015 | 2.67 | % | 155,408 | 1,022 | 2.64 | % | |||||||||||
| Other interest-bearing assets | 456,818 | 4,747 | 4.17 | % | 225,720 | 2,545 | 4.53 | % | |||||||||||
| Total interest-earning assets | 4,212,086 | 64,356 | 6.13 | % | 3,997,282 | 59,431 | 5.98 | % | |||||||||||
| Noninterest-earning assets | 166,763 | 171,472 | |||||||||||||||||
| Total assets | $ | 4,378,849 | $ | 4,168,754 | |||||||||||||||
| Liabilities & stockholders’ equity | |||||||||||||||||||
| NOW, Savings, MMDA’s | $ | 2,326,779 | 15,890 | 2.74 | % | $ | 2,221,427 | 17,652 | 3.20 | % | |||||||||
| Time deposits | 438,697 | 4,172 | 3.81 | % | 392,778 | 3,977 | 4.07 | % | |||||||||||
| Short-term borrowings | 18 | - | 0.00 | % | 3 | - | 0.00 | % | |||||||||||
| Notes payable & other long-term borrowings | - | - | 0.00 | % | - | - | 0.00 | % | |||||||||||
| Subordinated debt | 64,031 | 835 | 5.23 | % | 63,845 | 835 | 5.26 | % | |||||||||||
| Junior subordinated deferrable interest debentures | 46,393 | 735 | 6.35 | % | 46,393 | 856 | 7.42 | % | |||||||||||
| Total interest-bearing liabilities | 2,875,918 | 21,632 | 3.02 | % | 2,724,446 | 23,320 | 3.44 | % | |||||||||||
| Demand deposits | 990,343 | 960,106 | |||||||||||||||||
| Other liabilities | 63,679 | 70,854 | |||||||||||||||||
| Stockholders’ equity | 448,909 | 413,348 | |||||||||||||||||
| Total liabilities & stockholders’ equity | $ | 4,378,849 | $ | 4,168,754 | |||||||||||||||
| Net interest income | $ | 42,724 | $ | 36,111 | |||||||||||||||
| Net interest margin (2) | 4.07 | % | 3.63 | % | |||||||||||||||
| (1) Average loan balances include nonaccrual loans and loans held for sale. | |||||||||||||||||||
| (2) Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets. | |||||||||||||||||||
| South Plains Financial, Inc. Average Balances and Yields - (Unaudited) (Dollars in thousands) | |||||||||||||||||||
| For the Six Months Ended | |||||||||||||||||||
| June 30, 2025 | June 30, 2024 | ||||||||||||||||||
| Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | ||||||||||||||
| Assets | |||||||||||||||||||
| Loans | $ | 3,084,563 | $ | 104,471 | 6.83 | % | $ | 3,048,569 | $ | 99,519 | 6.56 | % | |||||||
| Debt securities - taxable | 509,431 | 9,392 | 3.72 | % | 543,817 | 10,796 | 3.99 | % | |||||||||||
| Debt securities - nontaxable | 152,716 | 2,029 | 2.68 | % | 155,831 | 2,046 | 2.64 | % | |||||||||||
| Other interest-bearing assets | 421,899 | 8,606 | 4.11 | % | 262,345 | 6,020 | 4.61 | % | |||||||||||
| Total interest-earning assets | 4,168,609 | 124,498 | 6.02 | % | 4,010,562 | 118,381 | 5.94 | % | |||||||||||
| Noninterest-earning assets | 169,222 | 177,882 | |||||||||||||||||
| Total assets | $ | 4,337,831 | $ | 4,188,444 | |||||||||||||||
| Liabilities & stockholders’ equity | |||||||||||||||||||
| NOW, Savings, MMDA’s | $ | 2,314,562 | 31,401 | 2.74 | % | $ | 2,253,704 | 35,649 | 3.18 | % | |||||||||
| Time deposits | 440,297 | 8,488 | 3.89 | % | 383,816 | 7,643 | 4.00 | % | |||||||||||
| Short-term borrowings | 11 | - | 0.00 | % | 3 | - | 0.00 | % | |||||||||||
| Notes payable & other long-term borrowings | - | - | 0.00 | % | - | - | 0.00 | % | |||||||||||
| Subordinated debt | 64,008 | 1,670 | 5.26 | % | 63,822 | 1,670 | 5.26 | % | |||||||||||
| Junior subordinated deferrable interest debentures | 46,393 | 1,468 | 6.38 | % | 46,393 | 1,717 | 7.44 | % | |||||||||||
| Total interest-bearing liabilities | 2,865,271 | 43,027 | 3.03 | % | 2,747,738 | 46,679 | 3.42 | % | |||||||||||
| Demand deposits | 962,557 | 959,219 | |||||||||||||||||
| Other liabilities | 64,875 | 70,856 | |||||||||||||||||
| Stockholders’ equity | 445,128 | 410,631 | |||||||||||||||||
| Total liabilities & stockholders’ equity | $ | 4,337,831 | $ | 4,188,444 | |||||||||||||||
| Net interest income | $ | 81,471 | $ | 71,702 | |||||||||||||||
| Net interest margin (2) | 3.94 | % | 3.60 | % | |||||||||||||||
| (1) Average loan balances include nonaccrual loans and loans held for sale. | |||||||||||||||||||
| (2) Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets. | |||||||||||||||||||
| South Plains Financial, Inc. Consolidated Balance Sheets (Unaudited) (Dollars in thousands) | |||||||
| As of | |||||||
| June 30, 2025 | December 31, 2024 | ||||||
| Assets | |||||||
| Cash and due from banks | $ | 60,400 | $ | 54,114 | |||
| Interest-bearing deposits in banks | 410,096 | 304,968 | |||||
| Securities available for sale | 570,000 | 577,240 | |||||
| Loans held for sale | 17,182 | 20,542 | |||||
| Loans held for investment | 3,098,978 | 3,055,054 | |||||
| Less: Allowance for credit losses | (45,010 | ) | (43,237 | ) | |||
| Net loans held for investment | 3,053,968 | 3,011,817 | |||||
| Premises and equipment, net | 51,329 | 52,951 | |||||
| Goodwill | 19,315 | 19,315 | |||||
| Intangible assets | 1,417 | 1,720 | |||||
| Mortgage servicing rights | 25,134 | 26,292 | |||||
| Other assets | 154,833 | 163,280 | |||||
| Total assets | $ | 4,363,674 | $ | 4,232,239 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Noninterest-bearing deposits | $ | 998,759 | $ | 935,510 | |||
| Interest-bearing deposits | 2,740,179 | 2,685,366 | |||||
| Total deposits | 3,738,938 | 3,620,876 | |||||
| Short-term borrowings | 1,352 | — | |||||
| Subordinated debt | 64,054 | 63,961 | |||||
| Junior subordinated deferrable interest debentures | 46,393 | 46,393 | |||||
| Other liabilities | 58,863 | 62,060 | |||||
| Total liabilities | 3,909,600 | 3,793,290 | |||||
| Stockholders’ Equity | |||||||
| Common stock | 16,230 | 16,456 | |||||
| Additional paid-in capital | 90,268 | 97,287 | |||||
| Retained earnings | 407,822 | 385,827 | |||||
| Accumulated other comprehensive income (loss) | (60,246 | ) | (60,621 | ) | |||
| Total stockholders’ equity | 454,074 | 438,949 | |||||
| Total liabilities and stockholders’ equity | $ | 4,363,674 | $ | 4,232,239 | |||
| South Plains Financial, Inc. Consolidated Statements of Income (Unaudited) (Dollars in thousands) | |||||||||||
| Three Months Ended | Six Months Ended | ||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||||||||
| Interest income: | |||||||||||
| Loans, including fees | $ | 53,886 | $ | 50,571 | $ | 104,456 | $ | 99,503 | |||
| Other | 10,249 | 8,637 | 19,601 | 18,432 | |||||||
| Total interest income | 64,135 | 59,208 | 124,057 | 117,935 | |||||||
| Interest expense: | |||||||||||
| Deposits | 20,062 | 21,629 | 39,889 | 43,292 | |||||||
| Subordinated debt | 835 | 835 | 1,670 | 1,670 | |||||||
| Junior subordinated deferrable interest debentures | 735 | 856 | 1,468 | 1,717 | |||||||
| Other | - | - | - | - | |||||||
| Total interest expense | 21,632 | 23,320 | 43,027 | 46,679 | |||||||
| Net interest income | 42,503 | 35,888 | 81,030 | 71,256 | |||||||
| Provision for credit losses | 2,500 | 1,775 | 2,920 | 2,605 | |||||||
| Net interest income after provision for credit losses | 40,003 | 34,113 | 78,110 | 68,651 | |||||||
| Noninterest income: | |||||||||||
| Service charges on deposits | 2,098 | 1,949 | 4,239 | 3,762 | |||||||
| Mortgage banking activities | 3,606 | 3,397 | 5,719 | 7,342 | |||||||
| Bank card services and interchange fees | 3,771 | 4,052 | 7,150 | 7,113 | |||||||
| Other | 2,690 | 3,311 | 5,682 | 5,901 | |||||||
| Total noninterest income | 12,165 | 12,709 | 22,790 | 24,118 | |||||||
| Noninterest expense: | |||||||||||
| Salaries and employee benefits | 19,708 | 19,199 | 39,149 | 38,187 | |||||||
| Net occupancy expense | 3,972 | 4,029 | 7,999 | 7,949 | |||||||
| Professional services | 1,874 | 1,738 | 3,604 | 3,221 | |||||||
| Marketing and development | 919 | 860 | 1,824 | 1,614 | |||||||
| Other | 7,070 | 6,746 | 13,997 | 13,531 | |||||||
| Total noninterest expense | 33,543 | 32,572 | 66,573 | 64,502 | |||||||
| Income before income taxes | 18,625 | 14,250 | 34,327 | 28,267 | |||||||
| Income tax expense | 4,020 | 3,116 | 7,428 | 6,259 | |||||||
| Net income | $ | 14,605 | $ | 11,134 | $ | 26,899 | $ | 22,008 | |||
| South Plains Financial, Inc. Loan Composition (Unaudited) (Dollars in thousands) | |||||
| As of | |||||
| June 30, 2025 | December 31, 2024 | ||||
| Loans: | |||||
| Commercial Real Estate | $ | 1,085,309 | $ | 1,119,063 | |
| Commercial - Specialized | 379,068 | 388,955 | |||
| Commercial - General | 620,934 | 557,371 | |||
| Consumer: | |||||
| 1-4 Family Residential | 589,935 | 566,400 | |||
| Auto Loans | 258,193 | 254,474 | |||
| Other Consumer | 63,589 | 64,936 | |||
| Construction | 101,950 | 103,855 | |||
| Total loans held for investment | $ | 3,098,978 | $ | 3,055,054 | |
| South Plains Financial, Inc. Deposit Composition (Unaudited) (Dollars in thousands) | |||||
| As of | |||||
| June 30, 2025 | December 31, 2024 | ||||
| Deposits: | |||||
| Noninterest-bearing deposits | $ | 998,759 | $ | 935,510 | |
| NOW & other transaction accounts | 1,244,023 | 498,718 | |||
| MMDA & other savings | 1,072,010 | 1,741,988 | |||
| Time deposits | 424,146 | 444,660 | |||
| Total deposits | $ | 3,738,938 | $ | 3,620,876 | |
| South Plains Financial, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in thousands) | |||||||||||||||||||
| For the quarter ended | |||||||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||
| Pre-tax, pre-provision income | |||||||||||||||||||
| Net income | $ | 14,605 | $ | 12,294 | $ | 16,497 | $ | 11,212 | $ | 11,134 | |||||||||
| Income tax expense | 4,020 | 3,408 | 4,222 | 3,094 | 3,116 | ||||||||||||||
| Provision for credit losses | 2,500 | 420 | 1,200 | 495 | 1,775 | ||||||||||||||
| Pre-tax, pre-provision income | $ | 21,125 | $ | 16,122 | $ | 21,919 | $ | 14,801 | $ | 16,025 | |||||||||
| As of | |||||||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||
| Tangible common equity | |||||||||||||||||||
| Total common stockholders’ equity | $ | 454,074 | $ | 443,743 | $ | 438,949 | $ | 443,122 | $ | 417,985 | |||||||||
| Less: goodwill and other intangibles | (20,732 | ) | (20,884 | ) | (21,035 | ) | (21,197 | ) | (21,379 | ) | |||||||||
| Tangible common equity | $ | 433,342 | $ | 422,859 | $ | 417,914 | $ | 421,925 | $ | 396,606 | |||||||||
| Tangible assets | |||||||||||||||||||
| Total assets | $ | 4,363,674 | $ | 4,405,209 | $ | 4,232,239 | $ | 4,337,659 | $ | 4,220,936 | |||||||||
| Less: goodwill and other intangibles | (20,732 | ) | (20,884 | ) | (21,035 | ) | (21,197 | ) | (21,379 | ) | |||||||||
| Tangible assets | $ | 4,342,942 | $ | 4,384,325 | $ | 4,211,204 | $ | 4,316,462 | $ | 4,199,557 | |||||||||
| Shares outstanding | 16,230,475 | 16,235,647 | 16,455,826 | 16,386,627 | 16,424,021 | ||||||||||||||
| Total stockholders’ equity to total assets | 10.41 | % | 10.07 | % | 10.37 | % | 10.22 | % | 9.90 | % | |||||||||
| Tangible common equity to tangible assets | 9.98 | % | 9.64 | % | 9.92 | % | 9.77 | % | 9.44 | % | |||||||||
| Book value per share | $ | 27.98 | $ | 27.33 | $ | 26.67 | $ | 27.04 | $ | 25.45 | |||||||||
| Tangible book value per share | $ | 26.70 | $ | 26.05 | $ | 25.40 | $ | 25.75 | $ | 24.15 | |||||||||
FAQ
What was South Plains Financial's (SPFI) earnings per share in Q2 2025?
How much was SPFI's net interest margin in the second quarter of 2025?
What was South Plains Financial's loan portfolio size as of June 30, 2025?
How did SPFI's deposit base change in Q2 2025?
What was South Plains Financial's asset quality in Q2 2025?
