South Plains Financial, Inc. (SPFI), a bank holding company headquartered in Lubbock, Texas, reported a net income of $58.5 million for the year ended December 31, 2025, a 17.6% increase compared to $49.7 million in 2024. This translates to diluted earnings per share of $3.44, up from $2.92 in the previous year. The company's financial performance was primarily driven by a $19.9 million increase in net interest income, which reached $167.0 million, while noninterest income decreased by $3.2 million to $44.9 million. Noninterest expenses increased by $5.0 million to $132.6 million.
The increase in net interest income was attributed to a rise in interest income, mainly from loans, and a decrease in interest expense due to lower rates paid on interest-bearing liabilities. The net interest margin improved to 3.98% from 3.65% in the prior year. The provision for credit losses increased to $5.2 million, reflecting loan growth and net charge-offs of $3.0 million. Mortgage banking activities contributed $10.7 million to noninterest income, a decrease from $14.2 million in the previous year, primarily due to a negative fair value adjustment of the company's mortgage servicing rights portfolio.
As of December 31, 2025, SPFI's total assets stood at $4.48 billion, a 5.9% increase from $4.23 billion in 2024. Gross loans held for investment reached $3.14 billion, up 2.9% from $3.06 billion. Total deposits increased by 7.0% to $3.87 billion. The company's asset quality metrics included nonperforming loans representing 0.31% of total loans held for investment, and the allowance for credit losses covering 460.29% of nonperforming loans. The allowance for credit losses to total loans held for investment was 1.44%.
Strategic developments included an agreement to acquire BOH Holdings, Inc., expected to close in the second quarter of 2026, subject to regulatory approvals and BOH shareholder approval. As of December 31, 2025, the company operated 24 full-service banking locations and 7 loan production offices. The company's capital ratios exceeded regulatory minimums, with a common equity tier 1 capital ratio of 14.45%, a tier 1 risk-based capital ratio of 15.70%, and a total risk-based capital ratio of 17.26%. The company's board of directors approved a stock repurchase program, authorizing the purchase of up to $15.0 million of its outstanding shares of common stock.
About SOUTH PLAINS FINANCIAL, INC.
South Plains Financial, Inc. is a bank holding company based in Texas, operating City Bank, a leading community bank in West Texas. It offers commercial, retail, mortgage, trust, and investment services across multiple Texas markets and New Mexico. Focused on relationship banking, it emphasizes community engagement, asset quality, and diversified financial solutions to serve small and medium-sized businesses and individuals.
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