South Plains Financial, Inc. (NASDAQ: SPFI) Q2 2025 Earnings | 17/07/2025

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South Plains Financial, Inc. (NASDAQ: SPFI) reported its Q2 2025 results on July 17, 2025, delivering another record-setting quarter with robust profitability and broad-based operating strength. Net income surged to $14.6 million, up 31.5% from $11.1 million in Q2 2024 and exceeding analyst expectations. Diluted earnings per share grew to $0.86, a 30% increase year-over-year and ahead of consensus estimates. Strong results were driven by steady margin expansion, healthy organic loan growth, and effective capital management. Net interest income rose 18.4% year-over-year to $42.5 million. The net interest margin expanded sharply to 4.07% (up from 3.63% in Q2 2024), boosted by elevated loan yields, disciplined funding costs, and a $1.7 million nonrecurring interest recovery related to a fully repaid loan. The average yield on loans hit 6.99%, while the average cost of deposits declined to 2.14%, reflecting continued deposit repricing efforts. Noninterest income reached $12.2 million, offsetting modest expense growth and a higher provision for credit losses of $2.5 million as the company proactively managed its credit portfolio in a changing rate environment. Key performance metrics remained strong: return on average assets reached 1.34% and return on average equity climbed to 13.05%. Loan balances rose to $3.10 billion, and deposits of $3.74 billion included healthy growth in noninterest-bearing accounts, even as total balances reflected typical seasonal declines. The tangible book value per share increased to $26.70. Asset quality remained solid, with nonperforming loans at 0.34% of total loans and an allowance for credit losses of 1.45% of total loans. South Plains Financial’s Board approved a 7% increase to the quarterly cash dividend, now set at $0.16 per share, continuing the company’s six-year streak of dividend growth. Management reaffirmed its outlook for stable loan growth, disciplined risk management, and ongoing investments in people and technology. The company remains active in exploring M&A opportunities to drive additional scale and efficiency. Outlook: Net interest margin expected to remain resilient, even as loan growth moderates. Management focuses on cost control, proactive credit management, and expanding lending capabilities. Ongoing investments in talent recruitment and digital banking to support franchise growth. Strong capital and liquidity position allow flexibility for future growth and continued shareholder returns. About Inside Ticker: For more expert analysis and real-time updates on South Plains Financial, Inc. (NASDAQ: SPFI) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #SouthPlainsFinancial #SPFI #Q22025 #Earnings #NetInterestMargin #NetIncome #Dividend #LoanGrowth #FinancialResults #StockMarket #Banking #InsideTicker #CapitalManagement #TexasBank #ShareholderReturns #DepositGrowth #AssetQuality #Guidance #OperationalExcellence #CommunityBanking #2025Outlook