South Plains Financial Reports 45.5% Increase in Net Income for Q3 2025

South Plains Financial, Inc. reported a significant increase in financial performance for the third quarter of 2025, with net income reaching $16.3 million, or $0.96 per diluted share, compared to $11.2 million, or $0.66 per diluted share, in the same period last year. This represents a 45.5% increase in net income year-over-year. For the nine months ending September 30, 2025, net income totaled $43.2 million, up from $33.2 million in the prior year, reflecting a 30.0% increase. The return on average equity for the quarter was 13.89%, up from 10.36% a year earlier, while the return on average assets improved to 1.47% from 1.05%.

The company’s total assets increased by $247.2 million, or 5.8%, to $4.48 billion as of September 30, 2025, compared to $4.23 billion at the end of 2024. Total deposits also saw a notable rise, increasing by $260.3 million, or 7.2%, to $3.88 billion. This growth was attributed to both organic growth and an increase in noninterest-bearing demand deposits. However, loans held for investment slightly decreased by $1.6 million, or 0.1%, to $3.05 billion, primarily due to a reduction in multi-family property loans.

In terms of operational developments, South Plains Financial has focused on enhancing its customer service offerings, particularly in treasury management services, which contributed to a 12.0% increase in service charges on deposit accounts. Additionally, income from mortgage banking activities rose by 36.2% to $2.6 million, driven by improved fair value adjustments in the mortgage servicing rights portfolio. However, total noninterest income for the nine months ended September 30, 2025, decreased by 2.3% compared to the previous year, largely due to a decline in mortgage loan originations.

The company’s allowance for credit losses (ACL) on loans increased to $44.1 million as of September 30, 2025, compared to $43.2 million at the end of 2024. This increase was primarily due to a provision for credit losses of $3.2 million recorded during the nine months, partially offset by net charge-offs of $2.3 million. The ratio of ACL to loans held for investment was 1.45%, up from 1.42% at the end of the previous year. Looking ahead, South Plains Financial remains focused on managing credit risk amid ongoing economic uncertainties, including inflationary pressures and interest rate fluctuations, while continuing to explore growth opportunities in its market areas.