0001140361-26-008087
SEC filingSouth Plains Financial, Inc. reported solid financial results for fiscal year 2025, ending December 31, 2025. The company achieved net income of $58.5 million, driven by income before income taxes of $74.1 million and an income tax benefit of $15.6 million. Total assets grew to $4.48 billion, supported by a strong loan portfolio of $3.14 billion held for investment and total deposits of $3.87 billion. The company generated $77.5 million in net cash from operating activities, while investing activities used $68.2 million primarily for securities purchases and loan originations. Financing activities provided $184.1 million, largely from a net increase in deposits of $253.2 million. The company maintained a solid capital position with total stockholders' equity of $493.8 million. Key business activities included mortgage originations totaling $269.3 million and trust assets under management of approximately $435 million.
South Plains Financial, Inc. reported financial results for the fiscal year ending December 31, 2025. The company achieved net income of $58.5 million, supported by income before income taxes of $74.1 million and an income tax benefit of $15.6 million. Interest expense was $85.0 million and other expense was $17.5 million. The company maintained a strong balance sheet position with total assets of $4.48 billion, including cash and cash equivalents of $552.4 million, securities available for sale of $567.5 million, and loans held for investment of $3.14 billion (net of allowance for credit losses of $45.1 million). Total liabilities were $3.99 billion, primarily consisting of total deposits of $3.87 billion, with stockholders' equity of $493.8 million.
The company's primary business activities include commercial and retail banking, along with investment, trust and mortgage services. Mortgage originations totaled $269.3 million for the year ended December 31, 2025, with the company selling the servicing on approximately 57% of those mortgages. Mortgage operations represented 24% of total noninterest income, comprising $10.7 million for the year. The trust department had approximately $435 million of assets under management at December 31, 2025, and contributed $2.9 million of fee income for the year. Investment services generated gross revenue of $1.7 million with $684.4 million in assets under management at December 31, 2025. The company operates in multiple markets including Lubbock/South Plains ($2.5 billion deposits), Dallas ($496.5 million deposits), El Paso ($229.4 million deposits), Houston ($52.8 million deposits), Bryan/College Station ($56.1 million deposits), Permian Basin ($361.3 million deposits), and Ruidoso, New Mexico ($200.5 million deposits).
The company's income before income taxes was $74.1 million for the year ended December 31, 2025. Interest expense was $85.0 million, representing a significant cost component. Other expense totaled $17.5 million. The company benefited from an income tax benefit of $15.6 million, resulting in net income of $58.5 million. The allowance for credit losses on loans was $45.1 million, representing management's judgment of probable losses and risks inherent in the loan portfolio. The company's loan portfolio includes commercial loans representing approximately 71.0% of total loans, non-owner-occupied commercial real estate loans totaling approximately 37.0% of the total loan portfolio, indirect dealer loans comprising approximately 7.7% of total loans, and agricultural loans representing approximately 2.4% of total loans.
The company generated $77.5 million in net cash from operating activities for the year ended December 31, 2025. Key components included net income of $58.5 million, provision for credit losses of $5.2 million, depreciation and amortization of $5.8 million, and net gain on sales of loans of $9.6 million. Investing activities used $68.2 million, primarily for purchases of securities available for sale ($420.9 million), partially offset by maturities, prepayments, and calls of securities ($449.8 million) and loan originations and principal collections, net ($95.8 million). Financing activities provided $184.1 million, driven by a net change in deposits of $253.2 million, partially offset by payments made on subordinated debt ($50.0 million), cash dividends paid on common stock ($10.1 million), and payments to repurchase common stock ($8.5 million). The net change in cash and cash equivalents was $193.4 million, with ending cash and cash equivalents of $234.9 million.
The company entered into an Agreement and Plan of Reorganization on December 1, 2025, to acquire BOH Holdings, Inc. and Bank of Houston, with the proposed transaction expected to close in the second quarter of 2026, subject to customary closing conditions including regulatory approvals and shareholder approval. The company faces risks including interest rate sensitivity, economic conditions in its Texas and New Mexico markets, credit risk in its loan portfolio (particularly commercial real estate and indirect dealer lending), cybersecurity threats, regulatory compliance requirements, and competition from other financial institutions. The company had approximately 603 total employees as of December 31, 2025, including 545 full-time and 58 part-time employees. The company's capital ratios exceeded the minimum capital adequacy guideline percentage requirements under the Basel III Capital Rules as of December 31, 2025, and the Bank met the requirements for being deemed 'well-capitalized' for purposes of prompt corrective action regulations.