South Plains Financial Grows Loans in Q2

South Plains Financial(NASDAQ:SPFI) reported Q2 2025 results on July 16, 2025, posting diluted EPS of $0.86 (including a $0.09 one-time benefit), net income of $12.2 million, and net interest margin expansion to 4.07%. The quarter featured modest loan growth, core deposit mix improvement, capital ratio expansion, and proactive hiring, but also underscored headwinds from elevated loan payoffs.South Plains Financial ended the quarter with a consolidated common equity tier 1 risk-based capital ratio of 13.86% and a tier 1 leverage ratio of 12.12%. Tangible common equity to tangible assets rose 34 basis points to 9.98% quarter-over-quarter, with tangible book value per share reaching $26.70. Mergers and acquisitions remain part of its growth strategy.Loans held for investment rose $23.1 million, or 3% annualized, as broad-based gains offset $49.1 million in multifamily loan payoffs and a $26 million decline in major metro (Dallas, Houston, El Paso) balances to $1.01 billion. New hiring in growth markets, particularly Dallas, is expected to reinforce long-term origination levels. Management expects full-year 2025 loan growth at the lower end of the "low to mid-single-digit" range as near-term payoffs weigh on net growth, but views hiring as the lever that can drive a subsequent acceleration.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool