South Plains Financial soars as Q2 earnings beat estimates

Published 16/07/2025, 22:22
South Plains Financial soars as Q2 earnings beat estimates

Investing.com -- South Plains Financial, Inc. (NASDAQ:SPFI), the parent company of City Bank, reported second quarter earnings that exceeded analyst expectations, driving shares up 6.1% as investors responded positively to the company’s strong performance.

The Texas-based financial institution posted adjusted earnings per share of $0.86 for the second quarter of 2025, beating analyst estimates of $0.77 by 9 cents. Revenue came in at $54.7 million, surpassing the consensus estimate of $52.02 million. Compared to the same quarter last year, net income increased by 31.5% from $11.1 million to $14.6 million, while diluted EPS rose by 30.3% from $0.66.

Net interest income grew to $42.5 million, up 18.4% from $35.9 million in the second quarter of 2024. The company’s net interest margin improved to 4.07% on a tax-equivalent basis, compared to 3.63% in the year-ago quarter and 3.81% in the first quarter of 2025.

"We delivered solid second quarter results highlighted by steady margin expansion, continued loan growth despite high levels of loan payoffs, which were expected, and healthy capital levels that continued to build through the quarter," said Curtis Griffith, South Plains’ Chairman and Chief Executive Officer.

The company reported loans held for investment of $3.10 billion as of June 30, 2025, a slight increase of $23.1 million or 3.0% annualized from the previous quarter. Total (EPA:TTEF) deposits stood at $3.74 billion, down 1.4% from the first quarter but up 3.2% year-over-year.

Asset quality metrics showed some mixed signals, with the ratio of nonperforming assets to total assets increasing to 0.25% from 0.16% in the previous quarter, though this was significantly improved from 0.57% a year ago. The company recorded a provision for credit losses of $2.5 million in the quarter, up from $420,000 in the first quarter.

Tangible book value per share increased to $26.70 as of June 30, 2025, compared to $26.05 at the end of the previous quarter and $24.15 a year earlier, reflecting the company’s continued capital strength.

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