South Plains Financial, Inc. Reports Third Quarter 2025 Financial Results

Rhea-AI Summary

South Plains Financial (NASDAQ:SPFI) reported third quarter 2025 results on October 23, 2025. Net income was $16.3 million and diluted EPS was $0.96. Net interest income was $43.0 million and tax-equivalent net interest margin was 4.05%. Return on average assets was 1.47%.

Loans held for investment were $3.05 billion (down 1.5% sequentially); deposits were $3.88 billion (up 3.8% sequentially and 4.3% YoY). Tangible book value per share (non-GAAP) was $28.14. Capital ratios remained strong: consolidated total risk-based 17.34%, CET1 14.41%, tier 1 leverage 12.37%. Management cited technology investments, planned lending-team expansion up to 20%, and selective M&A discussions.

Positive

• Diluted EPS increased to $0.96 (Q3 2025)
• Deposits grew 3.8% sequentially to $3.88 billion
• Net interest income rose to $43.0 million
• Strong capital: CET1 ratio at 14.41%
• Tangible book value per share of $28.14

Negative

• Loans held for investment declined 1.5% sequentially to $3.05 billion
• Mortgage servicing rights write-down of $925 thousand reduced noninterest income
• Annualized net charge-offs rose to 0.16% in Q3 2025 from 0.06% in Q2 2025
• Higher-than-normal loan paydowns cited as a headwind to loan growth

LUBBOCK, Texas, Oct. 23, 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 September 30, 2025.

Third Quarter 2025 Highlights

• Net income for the third quarter of 2025 was $16.3 million, compared to $14.6 million for the second quarter of 2025 and $11.2 million for the third quarter of 2024.
• Diluted earnings per share for the third quarter of 2025 was $0.96, compared to $0.86 for the second quarter of 2025 and $0.66 for the third quarter of 2024.
• Average cost of deposits for the third quarter of 2025 was 210 basis points, compared to 214 basis points for the second quarter of 2025 and 247 basis points for the third quarter of 2024.
• Net interest margin, on a tax-equivalent basis, was 4.05% for the third quarter of 2025, compared to 4.07% for the second quarter of 2025 and 3.65% for the third quarter of 2024.
• Return on average assets for the third quarter of 2025 was 1.47%, compared to 1.34% for the second quarter of 2025 and 1.05% for the third quarter of 2024.
• Tangible book value (non-GAAP) per share was $28.14 as of September 30, 2025, compared to $26.70 as of June 30, 2025 and $25.75 as of September 30, 2024.
• The consolidated total risk-based capital ratio, common equity tier 1 risk-based capital ratio, and tier 1 leverage ratio at September 30, 2025 were 17.34%, 14.41%, and 12.37%, respectively.

Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “We delivered strong third quarter results highlighted by solid earnings growth as we continued to experience net interest income expansion supported by our low cost, community-based deposit franchise. The credit quality of our loan portfolio also continued to improve as did our return on average assets. Our results demonstrate the strong foundation that we have purposefully built. We have added exceptional talent across the Bank while also making the necessary investments in our technology platform that positions South Plains to efficiently scale our operations as we grow. I believe the Bank is firmly positioned to accelerate our asset growth through both organic expansion and accretive M&A opportunities. While we have been experiencing higher than normal paydowns which has proved a headwind to loan growth, we expect an acceleration in growth next year aided by the expansion of our lending platform where we expect to further increase our lending team by up to 20%. We continue to engage in discussions with potential target banks in our core markets although we are only interested in acquiring a bank that fits our conservative nature and overall culture, and meets our strict criteria for a deal. As a result, we will only do a deal that makes sense for the Bank and our shareholders.”

Results of Operations, Quarter Ended September 30, 2025

Net Interest Income

Net interest income was $43.0 million for the third quarter of 2025, compared to $42.5 million for the second quarter of 2025 and $37.3 million for the third quarter of 2024. Net interest margin, calculated on a tax-equivalent basis, was 4.05% for the third quarter of 2025, compared to 4.07% for the second quarter of 2025 and 3.65% for the third quarter of 2024. The average yield on loans was 6.92% for the third quarter of 2025, compared to 6.99% for the second quarter of 2025 and 6.68% for the third quarter of 2024. The average cost of deposits was 210 basis points for the third quarter of 2025, which is 4 basis points lower than the second quarter of 2025 and 37 basis points lower than the third quarter of 2024. Loan interest income for the third quarter of 2025 included $640 thousand in interest and fees recognized related to the resolution of credit workouts. This amount positively impacted the net interest margin by 6 basis points and the loan yield by 8 basis points during the third quarter of 2025. There was a recovery of $1.7 million in interest during the second quarter of 2025, related to the full repayment of a loan that had previously been on nonaccrual. This recovery positively impacted the net interest margin by 17 basis points and the loan yield by 23 basis points during the second quarter of 2025.

Interest income was $64.5 million for the third quarter of 2025, compared to $64.1 million for the second quarter of 2025 and $61.6 million for the third quarter of 2024. Interest income increased $385 thousand in the third quarter of 2025 from the second quarter of 2025, which was primarily comprised of an increase of $343 thousand in interest income on other earning assets. The increase in interest income on other earning assets was mainly due to an increase of $32.8 million in average other interest-earning assets during the third quarter of 2025. Interest income increased $2.9 million in the third quarter of 2025 compared to the third quarter of 2024. This increase was primarily due to the $640 thousand of loan interest and fees and an increase of average loans of $23.6 million and higher loan interest rates during the period, resulting in growth of $2.4 million in loan interest income.

Interest expense was $21.5 million for the third quarter of 2025, compared to $21.6 million for the second quarter of 2025 and $24.3 million for the third quarter of 2024. Interest expense decreased $131 thousand compared to the second quarter of 2025 and decreased $2.8 million compared to the third quarter of 2024. The $2.8 million decrease was primarily a result of a 49 basis point decline in the cost of interest-bearing deposits, partially offset by an increase of $71.5 million in average interest-bearing deposits in the third quarter of 2025 as compared to the third quarter of 2024.

Noninterest Income and Noninterest Expense

Noninterest income was $11.2 million for the third quarter of 2025, compared to $12.2 million for the second quarter of 2025 and $10.6 million for the third quarter of 2024. The decrease from the second quarter of 2025 was primarily due to a decrease of $1.0 million in mortgage banking revenues, mainly as a result of the change in the fair value adjustment of the mortgage servicing rights assets – a write-down of $925 thousand in the third quarter of 2025 compared to a write-down of $156 thousand in the second quarter of 2025 – as interest rates that affect the value declined in the third quarter of 2025. The increase in noninterest income for the third quarter of 2025 as compared to the third quarter of 2024 was primarily due to an increase of $685 thousand in mortgage banking revenues, mainly as a result of the change in the fair value adjustment of the mortgage servicing rights assets – a write-down of $925 thousand in the third quarter of 2025 compared to a write-down of $2.1 million in the third quarter of 2024 – as interest rates that affect the value declined in the third quarter of 2025.

Noninterest expense was $33.0 million for the third quarter of 2025, compared to $33.5 million for the second quarter of 2025 and $33.1 million for the third quarter of 2024. The $519 thousand decrease from the second quarter of 2025 was largely the result of a decrease of $581 thousand in professional service expenses related primarily to consulting on technology projects and initiatives. The $104 thousand decrease in noninterest expense for the third quarter of 2025 as compared to the third quarter of 2024 was largely the result of a decrease in professional service expenses of $514 thousand and a decrease of $258 thousand in other noninterest expenses, partially offset by an increase of $616 thousand in personnel expenses, mainly a result of annual salary adjustments. The $514 thousand decrease in professional service expense was mainly due to higher legal expense as well as consulting related to technology projects in the third quarter of 2024.

Loan Portfolio and Composition

Loans held for investment were $3.05 billion as of September 30, 2025, compared to $3.10 billion as of June 30, 2025 and $3.04 billion as of September 30, 2024. The decrease of $45.5 million, or 1.5%, during the third quarter of 2025 as compared to the second quarter of 2025 occurred primarily as a result of a decrease of $46.5 million in multi-family property loans mainly due to the payoff of two loans totaling $39.6 million, partially offset by organic loan growth. As of September 30, 2025, loans held for investment were essentially unchanged as compared to September 30, 2024.

Deposits and Borrowings

Deposits totaled $3.88 billion as of September 30, 2025, compared to $3.74 billion as of June 30, 2025 and $3.72 billion as of September 30, 2024. Deposits increased by $142.2 million, or 3.8%, in the third quarter of 2025 from June 30, 2025. Deposits increased by $161.8 million, or 4.3%, at September 30, 2025 as compared to September 30, 2024. Noninterest-bearing deposits were $1.05 billion as of September 30, 2025, compared to $998.8 million as of June 30, 2025 and $998.5 million as of September 30, 2024. Noninterest-bearing deposits represented 27.0% of total deposits as of September 30, 2025. The quarterly and year-over-year changes in total deposits were due to organic growth in both retail and commercial deposits.

On September 30, 2025, the Company redeemed $50 million in subordinated debt. The subordinated debt was at the end of the initial five-year fixed rate period. After the expiration of the fixed rate period, the subordinated debt would have reset quarterly at a higher variable interest rate as well as being subject to a reduction in regulatory capital treatment.

Asset Quality

The Company recorded a provision for credit losses in the third quarter of 2025 of $500 thousand, compared to $2.5 million in the second quarter of 2025 and $495 thousand in the third quarter of 2024. The decrease in provision for the third quarter of 2025 as compared to the second quarter of 2025 was largely attributable to a decrease in specific reserves, decreased loan balances, and overall improved credit quality.

The ratio of allowance for credit losses to loans held for investment was 1.45% as of September 30, 2025, compared to 1.45% as of June 30, 2025 and 1.41% as of September 30, 2024.

The ratio of nonperforming assets to total assets was 0.26% as of September 30, 2025, compared to 0.25% as of June 30, 2025 and 0.59% as of September 30, 2024. Annualized net charge-offs were 0.16% for the third quarter of 2025, compared to 0.06% for the second quarter of 2025 and 0.11% for the third quarter of 2024.

Capital

Book value per share increased to $29.41 at September 30, 2025, compared to $27.98 at June 30, 2025. The change was primarily driven by $13.7 million of net income after dividends paid and by an increase in accumulated other comprehensive income of $9.1 million. The ratio of tangible common equity to tangible assets (non-GAAP) increased 27 basis points to 10.25% at September 30, 2025.

Conference Call

South Plains will host a conference call to discuss its third quarter 2025 financial results today, October 23, 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 13756126. The replay will be available until November 6, 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; slower economic growth rates or 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 among traditional and nontraditional financial services companies, 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, borrowing 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 the impact of uncertain or changing political conditions, including federal government shutdowns and 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
	September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
Selected Income Statement Data:
Interest income	$	64,520			$	64,135			$	59,922			$	61,324			$	61,640
Interest expense		21,501				21,632				21,395				22,776				24,346
Net interest income		43,019				42,503				38,527				38,548				37,294
Provision for credit losses		500				2,500				420				1,200				495
Noninterest income		11,165				12,165				10,625				13,319				10,635
Noninterest expense		33,024				33,543				33,030				29,948				33,128
Income tax expense		4,342				4,020				3,408				4,222				3,094
Net income		16,318				14,605				12,294				16,497				11,212
Per Share Data (Common Stock):
Net earnings, basic	$	1.00			$	0.90			$	0.75			$	1.01			$	0.68
Net earnings, diluted		0.96				0.86				0.72				0.96				0.66
Cash dividends declared and paid		0.16				0.15				0.15				0.15				0.14
Book value		29.41				27.98				27.33				26.67				27.04
Tangible book value (non-GAAP)		28.14				26.70				26.05				25.40				25.75
Weighted average shares outstanding, basic		16,241,695				16,231,627				16,415,862				16,400,361				16,386,079
Weighted average shares outstanding, dilutive		16,990,546				16,886,993				17,065,599				17,161,646				17,056,959
Shares outstanding at end of period		16,247,839				16,230,475				16,235,647				16,455,826				16,386,627
Selected Period End Balance Sheet Data:
Cash and cash equivalents	$	635,046			$	470,496			$	536,300			$	359,082			$	471,167
Investment securities		571,138				570,000				571,527				577,240				606,889
Total loans held for investment		3,053,503				3,098,978				3,075,860				3,055,054				3,037,375
Allowance for credit losses		44,125				45,010				42,968				43,237				42,886
Total assets		4,479,437				4,363,674				4,405,209				4,232,239				4,337,659
Interest-bearing deposits		2,831,642				2,740,179				2,826,055				2,685,366				2,720,880
Noninterest-bearing deposits		1,049,501				998,759				966,464				935,510				998,480
Total deposits		3,881,143				3,738,938				3,792,519				3,620,876				3,719,360
Borrowings		60,493				111,799				110,400				110,354				110,307
Total stockholders’ equity		477,802				454,074				443,743				438,949				443,122
Summary Performance Ratios:
Return on average assets (annualized)		1.47	%			1.34	%			1.16	%			1.53	%			1.05	%
Return on average equity (annualized)		13.89	%			13.05	%			11.30	%			14.88	%			10.36	%
Net interest margin(1)		4.05	%			4.07	%			3.81	%			3.75	%			3.65	%
Yield on loans		6.92	%			6.99	%			6.67	%			6.69	%			6.68	%
Cost of interest-bearing deposits		2.87	%			2.91	%			2.93	%			3.12	%			3.36	%
Efficiency ratio		60.69	%			61.11	%			66.90	%			57.50	%			68.80	%
Summary Credit Quality Data:
Nonperforming loans	$	9,709			$	10,463			$	6,467			$	24,023			$	24,693
Nonperforming loans to total loans held for investment		0.32	%			0.34	%			0.21	%			0.79	%			0.81	%
Other real estate owned	$	1,827			$	535			$	600			$	530			$	973
Nonperforming assets to total assets		0.26	%			0.25	%			0.16	%			0.58	%			0.59	%
Allowance for credit losses to total loans held for investment		1.45	%			1.45	%			1.40	%			1.42	%			1.41	%
Net charge-offs to average loans outstanding (annualized)		0.16	%			0.06	%			0.07	%			0.11	%			0.11	%

	As of and for the quarter ended
	September 30 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
Capital Ratios:
Total stockholders’ equity to total assets		10.67	%			10.41	%			10.07	%			10.37	%			10.22	%
Tangible common equity to tangible assets (non-GAAP)		10.25	%			9.98	%			9.64	%			9.92	%			9.77	%
Common equity tier 1 to risk-weighted assets		14.41	%			13.86	%			13.59	%			13.53	%			13.25	%
Tier 1 capital to average assets		12.37	%			12.12	%			12.04	%			12.04	%			11.76	%
Total capital to risk-weighted assets		17.34	%			18.17	%			17.93	%			17.86	%			17.61	%

(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
	September 30, 2025										September 30, 2024
	Average Balance			Interest			Yield/Rate				Average Balance			Interest			Yield/Rate
Assets
Loans(1)	$	3,093,465		$	53,935			6.92	%		$	3,069,900		$	51,513			6.68	%
Debt securities - taxable		498,302			4,638			3.69	%			524,641			5,300			4.02	%
Debt securities - nontaxable		155,028			1,080			2.76	%			154,806			1,016			2.61	%
Other interest-bearing assets		489,621			5,101			4.13	%			336,887			4,032			4.76	%
Total interest-earning assets		4,236,416			64,754			6.06	%			4,086,234			61,861			6.02	%
Noninterest-earning assets		167,437										172,922
Total assets	$	4,403,853									$	4,259,156
Liabilities & stockholders’ equity
NOW, Savings, MMDA’s	$	2,325,281			16,007			2.73	%		$	2,247,299			18,143			3.21	%
Time deposits		424,788			3,918			3.66	%			431,307			4,510			4.16	%
Short-term borrowings		7			-			0.00	%			3			-			0.00	%
Notes payable & other long-term borrowings		-			-			0.00	%			-			-			0.00	%
Subordinated debt		63,534			835			5.21	%			63,891			835			5.20	%
Junior subordinated deferrable interest debentures		46,393			741			6.34	%			46,393			858			7.36	%
Total interest-bearing liabilities		2,860,003			21,501			2.98	%			2,788,893			24,346			3.47	%
Demand deposits		1,010,159										976,048
Other liabilities		67,753										63,661
Stockholders’ equity		465,938										430,554
Total liabilities & stockholders’ equity	$	4,403,853									$	4,259,156
Net interest income				$	43,253									$	37,515
Net interest margin(2)								4.05	%									3.65	%

(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 Nine Months Ended
	September 30, 2025										September 30, 2024
	Average Balance			Interest			Yield/Rate				Average Balance			Interest			Yield/Rate
Assets
Loans(1)	$	3,087,530		$	158,406			6.86	%		$	3,055,679		$	151,031			6.60	%
Debt securities - taxable		505,721			14,030			3.71	%			537,425			16,096			4.00	%
Debt securities - nontaxable		153,486			3,109			2.71	%			155,489			3,062			2.63	%
Other interest-bearing assets		444,473			13,707			4.12	%			287,192			10,052			4.68	%
Total interest-earning assets		4,191,210			189,252			6.04	%			4,035,785			180,241			5.97	%
Noninterest-earning assets		168,628										176,230
Total assets	$	4,359,838									$	4,212,015
Liabilities & stockholders’ equity
NOW, Savings, MMDA’s	$	2,318,134			47,408			2.73	%		$	2,251,569			53,792			3.19	%
Time deposits		435,127			12,406			3.81	%			399,646			12,153			4.06	%
Short-term borrowings		9			-			0.00	%			3			-			0.00	%
Notes payable & other long-term borrowings		-			-			0.00	%			-			-			0.00	%
Subordinated debt		63,850			2,505			5.25	%			63,845			2,505			5.24	%
Junior subordinated deferrable interest debentures		46,393			2,209			6.37	%			46,393			2,575			7.41	%
Total interest-bearing liabilities		2,863,513			64,528			3.01	%			2,761,456			71,025			3.44	%
Demand deposits		978,426										964,829
Other liabilities		65,835										68,458
Stockholders’ equity		452,064										417,272
Total liabilities & stockholders’ equity	$	4,359,838									$	4,212,015
Net interest income				$	124,724									$	109,216
Net interest margin(2)								3.98	%									3.61	%

(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
	September 30, 2025				December 31, 2024
Assets
Cash and due from banks	$	56,071			$	54,114
Interest-bearing deposits in banks		578,975				304,968
Securities available for sale		571,138				577,240
Loans held for sale		13,046				20,542
Loans held for investment		3,053,503				3,055,054
Less:  Allowance for credit losses		(44,125	)			(43,237	)
Net loans held for investment		3,009,378				3,011,817
Premises and equipment, net		51,809				52,951
Goodwill		19,315				19,315
Intangible assets		1,265				1,720
Mortgage servicing rights		24,458				26,292
Other assets		153,982				163,280
Total assets	$	4,479,437			$	4,232,239
Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	1,049,501			$	935,510
Interest-bearing deposits		2,831,642				2,685,366
Total deposits		3,881,143				3,620,876
Short-term borrowings		-				—
Subordinated debt		14,100				63,961
Junior subordinated deferrable interest debentures		46,393				46,393
Other liabilities		59,999				62,060
Total liabilities		4,001,635				3,793,290
Stockholders’ Equity
Common stock		16,248				16,456
Additional paid-in capital		91,116				97,287
Retained earnings		421,542				385,827
Accumulated other comprehensive income (loss)		(51,104	)			(60,621	)
Total stockholders’ equity		477,802				438,949
Total liabilities and stockholders’ equity	$	4,479,437			$	4,232,239

South Plains Financial, Inc. Consolidated Statements of Income (Unaudited) (Dollars in thousands)
	Three Months Ended								Nine Months Ended
	September 30, 2025				September 30, 2024				September 30, 2025				September 30, 2024
Interest income:
Loans, including fees	$	53,928			$	51,505			$	158,384			$	151,008
Other		10,592				10,135				30,193				28,567
Total interest income		64,520				61,640				188,577				179,575
Interest expense:
Deposits		19,925				22,653				59,814				65,945
Subordinated debt		835				835				2,505				2,505
Junior subordinated deferrable interest debentures		741				858				2,209				2,575
Other		-				-				-				-
Total interest expense		21,501				24,346				64,528				71,025
Net interest income		43,019				37,294				124,049				108,550
Provision for credit losses		500				495				3,420				3,100
Net interest income after provision for credit losses		42,519				36,799				120,629				105,450
Noninterest income:
Service charges on deposits		2,266				2,023				6,505				5,785
Mortgage banking activities		2,575				1,890				8,294				9,232
Bank card services and interchange fees		3,403				3,302				10,553				10,415
Other		2,921				3,420				8,603				9,321
Total noninterest income		11,165				10,635				33,955				34,753
Noninterest expense:
Salaries and employee benefits		19,413				18,767				58,562				56,954
Net occupancy expense		4,046				4,255				12,045				12,204
Professional services		1,293				1,807				4,897				5,028
Marketing and development		979				1,015				2,803				2,629
Other		7,293				7,284				21,290				20,815
Total noninterest expense		33,024				33,128				99,597				97,630
Income before income taxes		20,660				14,306				54,987				42,573
Income tax expense		4,342				3,094				11,770				9,353
Net income	$	16,318			$	11,212			$	43,217			$	33,220

South Plains Financial, Inc. Loan Composition (Unaudited) (Dollars in thousands)
	As of
	September 30, 2025				December 31, 2024
Loans:
Commercial Real Estate	$	1,035,903			$	1,119,063
Commercial - Specialized		377,783				388,955
Commercial - General		629,256				557,371
Consumer:
1-4 Family Residential		592,578				566,400
Auto Loans		256,281				254,474
Other Consumer		63,727				64,936
Construction		97,952				103,855
Total loans held for investment	$	3,053,480			$	3,055,054

South Plains Financial, Inc. Deposit Composition (Unaudited) (Dollars in thousands)
	As of
	September 30, 2025				December 31, 2024
Deposits:
Noninterest-bearing deposits	$	1,049,501			$	935,510
NOW & other transaction accounts		1,291,756				498,718
MMDA & other savings		1,114,945				1,741,988
Time deposits		424,941				444,660
Total deposits	$	3,881,143			$	3,620,876

South Plains Financial, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in thousands)
	For the quarter ended
	September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
Pre-tax, pre-provision income
Net income	$	16,318			$	14,605			$	12,294			$	16,497			$	11,212
Income tax expense		4,342				4,020				3,408				4,222				3,094
Provision for credit losses		500				2,500				420				1,200				495
Pre-tax, pre-provision income	$	21,160			$	21,125			$	16,122			$	21,919			$	14,801

	As of
	September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024
Tangible common equity
Total common stockholders’ equity	$	477,802			$	454,074			$	443,743			$	438,949			$	443,122
Less:  goodwill and other intangibles		(20,580	)			(20,732	)			(20,884	)			(21,035	)			(21,197	)
Tangible common equity	$	457,222			$	433,342			$	422,859			$	417,914			$	421,925
Tangible assets
Total assets	$	4,479,437			$	4,363,674			$	4,405,209			$	4,232,239			$	4,337,659
Less:  goodwill and other intangibles		(20,580	)			(20,732	)			(20,884	)			(21,035	)			(21,197	)
Tangible assets	$	4,458,857			$	4,342,942			$	4,384,325			$	4,211,204			$	4,316,462
Shares outstanding		16,247,839				16,230,475				16,235,647				16,455,826				16,386,627
Total stockholders’ equity to total assets		10.67	%			10.41	%			10.07	%			10.37	%			10.22	%
Tangible common equity to tangible assets		10.25	%			9.98	%			9.64	%			9.92	%			9.77	%
Book value per share	$	29.41			$	27.98			$	27.33			$	26.67			$	27.04
Tangible book value per share	$	28.14			$	26.70			$	26.05			$	25.40			$	25.75

FAQ

What were South Plains Financial (SPFI) Q3 2025 EPS and net income?

South Plains reported diluted EPS $0.96 and net income $16.3 million for Q3 2025.

How did SPFI loans and deposits change in Q3 2025?

Loans held for investment were $3.05 billion (down 1.5% sequentially); deposits were $3.88 billion (up 3.8% sequentially).

What was SPFI's net interest margin and net interest income in Q3 2025?

Tax-equivalent net interest margin was 4.05% and net interest income was $43.0 million in Q3 2025.

What capital and tangible book metrics did SPFI report on September 30, 2025?

Tangible book value per share (non-GAAP) was $28.14; consolidated total risk-based ratio was 17.34%, CET1 14.41%, tier 1 leverage 12.37%.

Did SPFI mention plans for lending expansion or M&A after Q3 2025?

Management expects to increase the lending team by up to 20% and is engaged in selective discussions with potential target banks that fit its criteria.

How did mortgage servicing valuations affect SPFI's Q3 2025 results?

A $925 thousand write-down on mortgage servicing rights reduced mortgage banking revenue and noninterest income in Q3 2025.