South Plains Financial(US:SPFI)2025-10-23 20:31Financial Performance - 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, reflecting a year-over-year increase of 15.2%[4] - Net income for Q3 2025 was $16.3 million, compared to $14.6 million in Q2 2025 and $11.2 million in Q3 2024, representing a 45.5% increase year-over-year[6] - Diluted earnings per share for Q3 2025 was $0.96, an increase from $0.86 in Q2 2025 and $0.66 in Q3 2024[6] - Noninterest income for Q3 2025 was $11.2 million, down from $12.2 million in Q2 2025, primarily due to a decrease in mortgage banking revenues[8] - Interest income for Q3 2025 was $64,520,000, an increase from $61,640,000 in Q3 2024, representing a year-over-year growth of 4.5%[27] - Total interest income for Q3 2025 was $64,520,000, an increase of 3% from $61,640,000 in Q3 2024[34] - Noninterest income increased to $11,165,000 in Q3 2025, up from $10,635,000 in Q3 2024, marking a growth of 5%[34] - Net income for Q3 2025 was $16,318,000, a significant increase of 46% from $11,212,000 in Q3 2024[34] Asset Quality - The provision for credit losses in Q3 2025 was $500 thousand, a decrease from $2.5 million in Q2 2025, indicating improved credit quality[13] - The ratio of nonperforming assets to total assets was 0.26% as of September 30, 2025, down from 0.59% a year earlier, reflecting improved asset quality[15] - Nonperforming loans to total loans held for investment ratio was 0.32% in Q3 2025, slightly down from 0.34% in Q2 2025, indicating improved asset quality[27] - The provision for credit losses decreased to $500,000 in Q3 2025 from $495,000 in Q3 2024, indicating improved credit quality[27] - The provision for credit losses for Q3 2025 was $500,000, compared to $495,000 in Q3 2024, indicating a slight increase[34] Capital and Liquidity - Total deposits increased by $142.2 million, or 3.8%, to $3.88 billion as of September 30, 2025, compared to $3.74 billion as of June 30, 2025[11] - Cash and cash equivalents rose to $635,046,000 in Q3 2025, up from $471,167,000 in Q3 2024, indicating improved liquidity[27] - Total stockholders' equity to total assets ratio increased to 10.67% in Q3 2025 from 10.22% in Q3 2024, reflecting a stronger capital position[28] - Stockholders' equity increased to $477,802 thousand as of September 30, 2025, compared to $438,949 thousand as of December 31, 2024[33] - Tangible common equity as of September 30, 2025, was $457,222,000, up from $421,925,000 as of September 30, 2024, reflecting a year-over-year increase of 8%[36] - The book value per share increased to $29.41 as of September 30, 2025, compared to $27.04 a year earlier, representing an increase of 8.8%[36] Growth and Strategy - The company plans to expand its lending team by up to 20% to support future growth and is exploring potential M&A opportunities that align with its conservative approach[3] - Total assets as of September 30, 2025, were $4,479,437,000, an increase from $4,337,659,000 a year earlier, representing a growth of 3.3%[27] - Total loans held for investment as of September 30, 2025, were $3,053,480,000, slightly down from $3,055,054,000 as of December 31, 2024[35] - Total deposits increased to $3,881,143,000 as of September 30, 2025, compared to $3,620,876,000 as of December 31, 2024, representing a growth of 7%[35] Efficiency and Performance Ratios - Return on average assets (annualized) improved to 1.47% in Q3 2025 from 1.05% in Q3 2024, showcasing enhanced operational efficiency[27] - The efficiency ratio improved to 60.69% in Q3 2025 from 68.80% in Q3 2024, demonstrating better cost management[27] - The average yield on taxable debt securities for the three months ended September 30, 2025, was 3.69%, down from 4.02% in the same period of 2024[29] - The company reported a net interest margin of 3.98% for the nine months ended September 30, 2025, compared to 3.61% for the same period in 2024[31]