South Plains Financial (SPFI) Q4 2025 earnings summary

Executive summary

• Achieved full year net income of $58.5 million in 2025, up from $49.7 million in 2024, with diluted EPS rising 17.8% year-over-year to $3.44.

• Q4 2025 net income was $15.3 million and diluted EPS was $0.90, down from Q3 but up year-over-year.

• Entered a definitive agreement to acquire BOH Holdings, Inc. and Bank of Houston, expanding Houston presence; deal expected to be 11% accretive to EPS with tangible book value earnback under three years.

• Achieved organic loan growth of 2.9% for the year, in line with guidance, supported by strategic hiring and expansion in Texas markets.

• Maintained a strong capital position, supporting growth and shareholder returns through dividends and buybacks.

Financial highlights

• Net interest income for Q4 2025 was $43.0 million, flat sequentially and up from $38.5 million in Q4 2024; NIM was 4.00%, up 25 bps year-over-year.

• Loans held for investment grew to $3.14 billion at year-end 2025, up from $3.06 billion in 2024, driven by multifamily, energy, and commercial loans.

• Deposits totaled $3.87 billion at December 31, 2025, up 7% year-over-year.

• Noninterest income for Q4 2025 was $10.9 million (20% of revenues), down from $13.3 million in Q4 2024, mainly due to lower mortgage banking revenues.

• Efficiency ratio improved to 61.02% in Q4 2025 and 62.32% for the year.

Outlook and guidance

• Loan growth expected to accelerate to mid- to high-single digits in 2026, supported by new hires and the BOH acquisition.

• NIM expected to remain stable but faces risk of compression due to competitive deposit pricing and lower loan yields as rates decline.

• Noninterest expense projected to trend modestly higher in Q1 2026 due to hiring and technology investments.

• Continued focus on organic growth, selective M&A, and recruiting high-quality lenders.

• Merger with BOH Holdings, Inc. expected to drive improved profitability and long-term shareholder value.