South Plains' earnings grew; loan growth is slower

South Plains Financial (SPFI) reported solid Q1 2025 results, including loan growth and margin expansion, despite economic uncertainty, with diluted earnings per share at $0.72. The bank's non-performing assets improved, and it spent $8.3 million on share repurchases. Loan growth was 2.7% annualized, reaching $3.08 billion, while the net interest margin increased to 3.81%. Management anticipates loan growth to be at the lower end of its guidance for 2025, citing caution. South Plains is focused on hiring experienced lenders and anticipates a potential housing market recovery. Energy-related loans comprise approximately 4% of the portfolio, primarily in energy service businesses.