South Plains Financial(US:SPFI) Globenewswireยท2025-07-16 20:15Core Viewpoint - South Plains Financial, Inc. reported solid financial results for the second quarter of 2025, characterized by margin expansion, loan growth, and healthy capital levels, positioning the company to capitalize on future opportunities [3][4][6]. Financial Performance - Net interest income for Q2 2025 was $42.5 million, up from $38.5 million in Q1 2025 and $35.9 million in Q2 2024 [4][27]. - Net interest margin increased to 4.07% in Q2 2025, compared to 3.81% in Q1 2025 and 3.63% in Q2 2024 [4][28]. - Interest income rose to $64.1 million in Q2 2025, a $4.2 million increase from Q1 2025, driven by a $3.3 million rise in loan interest income [5][27]. - Net income for Q2 2025 was $14.6 million, compared to $12.3 million in Q1 2025 and $11.1 million in Q2 2024 [6][27]. Loan Portfolio and Deposits - Loans held for investment increased to $3.10 billion as of June 30, 2025, reflecting a 3.0% annualized growth from Q1 2025 [11][27]. - Total deposits were $3.74 billion as of June 30, 2025, a decrease of 1.4% from Q1 2025 but an increase of 3.2% year-over-year [12][27]. Asset Quality - The provision for credit losses in Q2 2025 was $2.5 million, up from $420 thousand in Q1 2025, indicating increased reserves due to credit quality downgrades [13][27]. - The ratio of nonperforming assets to total assets was 0.25% as of June 30, 2025, compared to 0.16% in Q1 2025 [15][27]. Capital Position - Book value per share increased to $27.98 as of June 30, 2025, from $27.33 in Q1 2025 [16][27]. - The total risk-based capital ratio was 18.17% as of June 30, 2025, indicating a strong capital position [6][28].