South Plains Financial(SPFI) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION This section presents the unaudited consolidated financial statements and management's discussion and analysis for South Plains Financial, Inc. Item 1. Consolidated Financial Statements This section presents unaudited consolidated financial statements, including balance sheets, income, equity, and cash flow statements, and notes Consolidated Balance Sheets (Unaudited) This section presents the unaudited consolidated balance sheets, detailing assets, liabilities, and equity for the reported periods | ASSETS (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------ | :------------ | :------------------ | | Cash and cash equivalents | $470,496 | $359,082 | | Securities available for sale | $570,000 | $577,240 | | Loans held for investment, net | $3,053,968 | $3,011,817 | | Total assets | $4,363,674 | $4,232,239 | | LIABILITIES AND STOCKHOLDERS' EQUITY (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :------------------ | | Total deposits | $3,738,938 | $3,620,876 | | Total liabilities | $3,909,600 | $3,793,290 | | Total stockholders' equity | $454,074 | $438,949 | | Total liabilities and stockholders' equity | $4,363,674 | $4,232,239 | - Total assets increased by $131.4 million (3.1%) from December 31, 2024, to June 30, 2025, reaching $4.36 billion, driven by increases in cash and cash equivalents and net loans held for investment[9][160] - Total deposits increased by $118.1 million (3.3%) to $3.74 billion at June 30, 2025, compared to $3.62 billion at December 31, 2024[9][160][207] Consolidated Statements of Comprehensive Income (Unaudited) This section presents the unaudited consolidated statements of comprehensive income, detailing revenues, expenses, and net income | (Dollars in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total interest income | $64,135 | $59,208 | $124,057 | $117,935 | | Total interest expense | $21,632 | $23,320 | $43,027 | $46,679 | | Net interest income | $42,503 | $35,888 | $81,030 | $71,256 | | Provision for credit losses | $2,500 | $1,775 | $2,920 | $2,605 | | Total noninterest income | $12,165 | $12,709 | $22,790 | $24,118 | | Total noninterest expense | $33,543 | $32,572 | $66,573 | $64,502 | | Net income | $14,605 | $11,134 | $26,899 | $22,008 | | Basic earnings per share | $0.90 | $0.68 | $1.65 | $1.34 | | Diluted earnings per share | $0.86 | $0.66 | $1.58 | $1.30 | - Net income for the three months ended June 30, 2025, increased by 31.2% to $14.6 million ($0.86 diluted EPS) from $11.1 million ($0.66 diluted EPS) in the prior year period[13][122] - Net interest income for the three months ended June 30, 2025, rose by $6.6 million (18.4%) to $42.5 million, driven by increased loan interest income and decreased interest expense on deposits[13][132] Consolidated Statements of Changes in Stockholders' Equity (Unaudited) This section presents the unaudited consolidated statements of changes in stockholders' equity, detailing movements in equity components | (Dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------- | :----------------------------- | :----------------------------- | | Beginning Balance | $438,949 | $407,114 | | Net income | $26,899 | $22,008 | | Cash dividends declared | $(4,904) | $(4,417) | | Other comprehensive income (loss) | $375 | $(7,386) | | Repurchases of common stock | $(8,526) | $(340) | | Ending Balance | $454,074 | $417,985 | - Total stockholders' equity increased by $15.1 million (3.4%) to $454.1 million at June 30, 2025, from $438.9 million at December 31, 2024, primarily due to net income and other comprehensive income, partially offset by dividends and stock repurchases[15][228] - Cash dividends declared for the six months ended June 30, 2025, were $0.30 per share, totaling $4.9 million, an increase from $0.27 per share ($4.4 million) in the same period of 2024[15] Consolidated Statements of Cash Flows (Unaudited) This section presents the unaudited consolidated statements of cash flows, detailing cash movements from operating, investing, and financing | (Dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $40,841 | $37,337 | | Net cash used in investing activities | $(35,369) | $(62,960) | | Net cash provided by (used in) financing activities | $105,942 | $(6,529) | | Net change in cash and cash equivalents | $111,414 | $(32,152) | | Ending cash and cash equivalents | $470,496 | $298,006 | - Net cash provided by financing activities significantly increased to $105.9 million for the six months ended June 30, 2025, compared to a net use of $6.5 million in the prior year, primarily due to a substantial increase in net change in deposits[17] - Cash and cash equivalents increased by $111.4 million during the first six months of 2025, reaching $470.5 million, a reversal from a decrease of $32.2 million in the same period of 2024[17] Notes to Consolidated Financial Statements (Unaudited) This section provides detailed notes to the unaudited consolidated financial statements, explaining accounting policies and disclosures 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This note outlines the Company's operations, basis of presentation, use of estimates, recent accounting pronouncements, and subsequent events - South Plains Financial, Inc. operates as a bank holding company through its subsidiaries, primarily City Bank, offering commercial and retail banking, investment, trust, and mortgage services across Texas and Eastern New Mexico[19] - The interim consolidated financial statements are unaudited and prepared in accordance with GAAP for interim financial information and SEC Form 10-Q instructions, relying on management's estimates for items like allowance for credit losses, stock-based compensation, and fair values[21][22] - Recent accounting pronouncements (ASU 2023-06, ASU 2023-09, ASU 2024-03) are not expected to have a material impact on the Company's financial statements upon adoption[24][25][26] [