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Sep 30
South Plains Financial Q3 2025 Earnings Report
South Plains Financial reported strong financial results for the third 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 robust third-quarter results, driven by net interest income expansion and improved credit quality. The company reported a net income of $16.3 million and diluted EPS of $0.96, demonstrating solid earnings growth and a strong financial foundation. The average cost of deposits decreased, and return on average assets improved, highlighting efficient operations and effective asset management.
Net income for Q3 2025 increased to $16.3 million, up from $14.6 million in Q2 2025 and $11.2 million in Q3 2024.
Diluted earnings per share rose to $0.96 in Q3 2025, compared to $0.86 in Q2 2025 and $0.66 in Q3 2024.
Net interest margin, on a tax-equivalent basis, was 4.05% for Q3 2025, showing stability despite a slight decrease from 4.07% in Q2 2025 but an increase from 3.65% in Q3 2024.
Total deposits grew by $142.2 million, or 3.8%, during the third quarter of 2025, reaching $3.88 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 anticipates accelerating asset growth in the coming year through organic expansion and accretive M&A opportunities, despite current headwinds from higher-than-normal loan paydowns. The company plans to expand its lending team and remains open to strategic acquisitions that align with its conservative nature and strict criteria.
Positive Outlook
- Expects acceleration in asset growth next year.
- Plans to expand lending platform by increasing the lending team by up to 20%.
- Actively engaging in discussions with potential target banks in core markets.
- Focus on acquiring banks that fit the company's conservative nature and culture.
- Committed to deals that make sense for the Bank and its shareholders.
Challenges Ahead
- Experiencing higher than normal paydowns, which has been a headwind to loan growth.
- Only interested in acquiring banks that fit strict criteria, potentially limiting M&A opportunities.
- Uncertainty regarding the timing and success of M&A activities.
- Potential for continued headwinds to loan growth if paydowns remain elevated.
- Market conditions and competitive landscape could impact growth acceleration.