South Plains Financial Reports 31.8% Increase in Net Income for Q2 2025

South Plains Financial, Inc. reported a net income of $14.6 million, or $0.86 per diluted share, for the three months ended June 30, 2025, marking a 31.8% increase from the $11.1 million, or $0.66 per diluted share, recorded in the same period last year. For the first half of 2025, net income reached $26.9 million, or $1.58 per diluted share, compared to $22.0 million, or $1.30 per diluted share, for the first half of 2024. The company's return on average equity improved to 13.05% for the second quarter of 2025, up from 10.83% in the prior year, while return on average assets rose to 1.34% from 1.07%.

Total assets increased by $131.4 million, or 3.1%, to $4.36 billion as of June 30, 2025, compared to $4.23 billion at the end of 2024. The growth was driven by a $43.9 million increase in loans held for investment, which reached $3.10 billion, and a $118.1 million rise in total deposits, totaling $3.74 billion. The company’s securities portfolio, however, saw a slight decline of $7.2 million, or 1.3%, to $570.0 million. The allowance for credit losses on loans increased to $45.0 million, up from $43.2 million at the end of 2024, reflecting a provision for credit losses of $2.5 million in the second quarter.

In terms of operational developments, South Plains Financial has focused on enhancing its customer engagement and expanding its market presence. The company reported an increase in service charges on deposit accounts, which rose by 7.6% year-over-year, attributed to treasury management initiatives. However, noninterest income for the second quarter decreased by 4.3% to $12.2 million, primarily due to a decline in bank card services and mortgage banking activities. The company also noted a decrease in net gain on sales of loans, which reflects a broader trend in the mortgage market.

Looking ahead, South Plains Financial remains cautious about potential economic challenges, including inflationary pressures and interest rate fluctuations. The company is committed to maintaining its capital adequacy, with total stockholders' equity increasing to $454.1 million as of June 30, 2025. Management believes that the company is well-capitalized and positioned to navigate the evolving market landscape, although it acknowledges that additional provisions for credit losses may be necessary in future periods due to ongoing economic uncertainties.