Q4 2025 Key Metrics
Average deposit costs fell to 201 basis points. This was better than 210 basis points in Q3 and 229 basis points in Q4 2024. Net interest margin held at 4.00% on a tax-equivalent basis. It dipped from 4.05% in Q3 but rose from 3.75% a year ago.
Return on average assets was 1.36%. Tangible book value per share grew to $29.05. Capital ratios stayed strong: total risk-based at 17.26%, CET1 at 14.45%, and Tier 1 leverage at 12.53%.
Full-Year 2025 Performance
Annual net income reached $58.5 million, up from $49.7 million in 2024. Diluted EPS climbed to $3.44 from $2.92. Loans held for investment grew $89.4 million, or 2.9%.
Total assets expanded to $4.48 billion from $4.23 billion. Return on average assets improved to 1.33% from 1.17%.
Income and Expense Breakdown
Net interest income stayed flat at $43.0 million from Q3. It rose from $38.5 million in Q4 2024. Interest income was $63.4 million, down from Q3 due to lower loan yields and rates. It increased year-over-year on higher loans.
Interest expense dropped to $20.5 million. Lower deposit costs and debt redemption helped. Noninterest income fell to $10.9 million, hit by mortgage banking declines. Noninterest expense held at $33.0 million, up from last year on personnel and professional fees.
Balance Sheet and Asset Quality
Loans hit $3.14 billion, up $91 million from Q3 on multi-family and energy growth. Deposits were stable at $3.87 billion. Noninterest-bearing deposits made up 26.4%.
Provision for credit losses rose to $1.8 million. Allowance to loans was 1.44%. Nonperforming assets stayed low at 0.26% of total assets. Net charge-offs were 0.10% annualized. Book value per share reached $30.31. Tangible common equity ratio was 10.61%.
Strategic Moves and Outlook
South Plains signed to acquire BOH Holdings and Bank of Houston on December 1. BOH had $772 million in assets at Q3 end. CEO Curtis Griffith highlighted 17.8% EPS growth, margin gains, and book value rise. He expects mid-to-high single-digit loan growth in 2026, plus more hires and deals.