South Plains Financial, Inc. reported a net income of $12.3 million, or $0.72 per diluted share, for the first quarter of 2025, marking an increase from $10.9 million, or $0.64 per diluted share, in the same period of 2024. The company's return on average equity rose to 11.30% from 10.72%, while return on average assets improved to 1.16% from 1.04%. The increase in net income was primarily driven by a $3.2 million rise in net interest income, which reached $38.5 million, partially offset by a $0.8 million decline in noninterest income and a $1.1 million increase in noninterest expenses.
Total assets for South Plains Financial increased by $173 million, or 4.1%, to $4.41 billion as of March 31, 2025, compared to $4.23 billion at the end of 2024. Loans held for investment rose by $20.8 million, or 0.7%, to $3.08 billion, while the securities portfolio decreased by $5.7 million, or 1.0%, to $571.5 million. Total deposits also saw a significant increase, rising by $171.6 million, or 4.7%, to $3.79 billion, attributed to seasonal growth in public fund deposits and organic growth in retail and commercial deposits.
In terms of operational metrics, the company reported a decrease in the allowance for credit losses (ACL) for loans to $43.0 million from $43.2 million at the end of 2024. The ACL as a percentage of loans held for investment was 1.40%, down from 1.42%. The company experienced net charge-offs of $519,000 during the quarter, a decrease from $947,000 in the same period last year. Nonaccrual loans significantly decreased to $1.9 million, or 0.06% of total loans, from $22.1 million, or 0.72%, at the end of 2024.
Strategically, South Plains Financial has initiated a new stock repurchase program, allowing for the repurchase of up to $15 million of its common stock, which began in February 2025. The company also declared a cash dividend of $0.15 per share, payable on May 12, 2025. Looking ahead, management remains cautious about potential economic challenges, including inflationary pressures and competition for deposits, which could impact future performance. The company continues to monitor its credit quality closely and is prepared to adjust its allowance for credit losses as necessary in response to changing economic conditions.
About SOUTH PLAINS FINANCIAL, INC.
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