South Plains Financial raises quarterly dividend by 7% to $0.16

LUBBOCK, Texas - South Plains Financial, Inc. (NASDAQ:SPFI), the parent company of City Bank, announced Thursday its Board of Directors has approved a quarterly cash dividend increase to $0.16 per share of common stock, representing a 7% rise from its previous dividend declared in April 2025. The increase marks the company’s 6th consecutive year of dividend growth, with shares currently yielding 1.63% and trading near their 52-week high of $40.91.

The dividend will be payable on August 11, 2025, to shareholders of record as of the close of business on July 28, 2025.

South Plains Financial operates as the bank holding company for City Bank, a Texas state-chartered bank headquartered in Lubbock. The bank maintains operations across multiple Texas markets including Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, as well as in Ruidoso, New Mexico.

The company provides commercial and retail banking services, along with investment, trust and mortgage services to small and medium-sized businesses and individuals in its market areas.

The information is based on a press release statement from South Plains Financial.

In other recent news, South Plains Financial has reported a strong performance in its second-quarter 2025 earnings, surpassing both earnings and revenue forecasts. The company achieved an earnings per share (EPS) of $0.86, exceeding the expected $0.77, and reported revenue of $54.7 million, outperforming the anticipated $52.02 million. Additionally, Raymond James raised its price target for South Plains Financial to $42 from $38, maintaining an Outperform rating due to the company’s strong quarterly results. The bank’s net interest margin expanded to 3.90%, excluding a one-time interest income recovery, surpassing forecasts of 3.82%-3.83%.

South Plains Financial also saw improvements in several key metrics, such as lower-than-expected noninterest expenses, stronger loan growth, and improved profitability metrics. However, the company faced some challenges, including core fee income falling short of Raymond James’ forecast and increased provision expenses due to credit migration. Despite these challenges, the company’s tangible book value per share increased to $26.70. Looking forward, South Plains Financial expects loan growth to remain flat to low single digits in the third quarter of 2025.

The company is also exploring merger and acquisition opportunities, with a focus on expanding its lending capabilities and maintaining a strong capital position. South Plains Financial’s strategic initiatives and strong market performance have been positively received by investors, as reflected in the increased stock price target by Raymond James.

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