South Plains Financial ( (SPFI) ) has released its Q1 earnings. Here is a breakdown of the information South Plains Financial presented to its investors.
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South Plains Financial, Inc., the parent company of City Bank, is a bank holding company based in Lubbock, Texas, providing a wide range of commercial and consumer financial services across various Texas markets and Ruidoso, New Mexico.
In the first quarter of 2025, South Plains Financial reported a net income of $12.3 million, a decrease from the previous quarter’s $16.5 million but an increase from $10.9 million in the same quarter of the previous year. The company’s diluted earnings per share also saw a decline to $0.72 from $0.96 in the fourth quarter of 2024, though it improved from $0.64 in the first quarter of 2024.
Key financial metrics for the quarter included a net interest margin of 3.81%, an improvement from both the previous quarter and the same quarter last year. The average cost of deposits decreased to 219 basis points, contributing to a favorable deposit growth of $171.6 million. The company also reported a tangible book value per share of $26.05, up from $25.40 at the end of 2024.
South Plains Financial’s management expressed confidence in the company’s strong position relative to peers, emphasizing solid deposit growth, margin expansion, and loan growth. Despite an uncertain economic outlook, the company is poised to expand in both metropolitan and rural markets, maintaining a conservative credit culture while seeking growth opportunities.
Looking ahead, South Plains Financial aims to leverage its liquidity and capital to meet customer needs and capitalize on market opportunities, while continuing to focus on maintaining strong credit quality and enhancing shareholder value.