South Plains Financial (SPFI) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $16.3 million ($0.96 per diluted share), up from $14.6 million in Q2 2025 and $11.2 million in Q3 2024, with return on average assets improving to 1.47%.

• Tangible book value per share increased to $28.14 from $26.70 in Q2 2025 and $25.75 in Q3 2024.

• Investments in talent and technology have positioned the company for scalable growth and operational efficiency.

• Board declared a $0.16 per share quarterly dividend, marking the 26th consecutive dividend.

• Redeemed $50 million in subordinated debt at the end of the fixed-rate period, reducing future interest costs.

Financial highlights

• Net interest income for Q3 2025 was $43.0 million, up from $42.5 million in Q2 2025 and $37.3 million in Q3 2024; net interest margin was 4.05%.

• Noninterest income was $11.2 million, down from $12.2 million in Q2 2025 but up from $10.6 million in Q3 2024, mainly due to mortgage banking revenues.

• Noninterest expense was $33.0 million, down from $33.5 million in Q2 2025 and nearly flat year-over-year.

• Total deposits increased to $3.88 billion, up $142.2 million sequentially and 7.2% since year-end 2024.

• Provision for credit losses dropped to $500 thousand from $2.5 million in Q2 2025.

Outlook and guidance

• Management expects loan growth to accelerate in 2026, aided by lending platform expansion and a planned 20% increase in the lending team.

• Continued focus on organic growth and selective M&A opportunities in major Texas markets.

• NIM expected to remain stable or slightly decline in the near term due to rate environment and deposit repricing.

• Management will continue to manage expenses to drive profitability.

• The company believes it has adequate liquidity and capital to support ongoing operations and growth.