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Jun 30
South Plains Financial Q2 2025 Earnings Report
South Plains Financial reported strong financial results for the second quarter of 2025, with significant increases in net income and diluted earnings per share compared to the previous quarter and the same period last year.
Key Takeaways
South Plains Financial delivered solid second quarter results, driven by steady margin expansion, continued loan growth, and healthy capital levels. Net income increased to $14.6 million, and diluted EPS rose to $0.86. The company also saw an improvement in its net interest margin and return on average assets, while maintaining solid credit quality.
Net income for Q2 2025 increased to $14.6 million, up from $12.3 million in Q1 2025 and $11.1 million in Q2 2024.
Diluted earnings per share reached $0.86 in Q2 2025, compared to $0.72 in Q1 2025 and $0.66 in Q2 2024.
Net interest margin, on a tax-equivalent basis, improved to 4.07% in Q2 2025, up from 3.81% in Q1 2025 and 3.63% in Q2 2024.
Total assets stood at $4.36 billion as of June 30, 2025, with total loans held for investment at $3.10 billion.
South Plains Financial
South Plains Financial
South Plains Financial Revenue by Segment
Revenue by Segment
Mortgage Banking Activities Revenue
CapyFin.comService Charges on Deposits Revenue
CapyFin.comBank Card Services and Interchange Fees Revenue
CapyFin.comOther Noninterest Income Revenue
CapyFin.com Forward Guidance
South Plains Financial is strategically focused on expanding its lending capabilities and increasing the Bank's assets, particularly by recruiting experienced commercial lenders in new markets like Dallas to accelerate loan growth and take market share.
Positive Outlook
- Strong position to capitalize on market opportunities.
- Pursuing a strategy to increase Bank assets by expanding lending capabilities.
- Community-based deposit franchise provides a stable, lower-cost funding source for loan growth.
- Successful track record of growing the loan portfolio over the last five years.
- Actively recruiting experienced commercial lenders to expand reach and acquire high-quality customer relationships.
Challenges Ahead
- High levels of loan payoffs were expected, partially offsetting organic loan growth.
- Increase in provision for credit losses due to specific reserves, net charge-off activity, and credit quality downgrades.
- Seasonal decrease in public fund deposits impacted total deposits quarterly.
- Potential for increased competition for deposits in market areas.
- Uncertain impacts of ongoing quantitative tightening and current/future monetary policies.