South Plains Financial (SPFI) AI Stock Analysis

• Market Cap: $660.61M
• Dividend Yield: 1.57%
• Average Volume (3M): 79.92K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.82
• Revenue Growth: 5.87%
• EPS Growth: 37.99%
• Country: US
• Employees: 528
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.90
• Shares Outstanding: 16,331,423
• 10 Day Avg. Volume: 96,928
• 30 Day Avg. Volume: 79,919
• PEG Ratio: 0.57
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 2.12
• P/FCF Ratio: 8.78
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 3.25
• Enterprise Value/Ebitda: 8.43
• 1Y Price Target: $46.33
• Price Target Upside: 14.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.67
• Revenue Forecast (FY): $242.84M

• Rating: 75 Outperform
• Price Target: $46.00 ▲(13.72% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven primarily by solid financial performance (profitable operations and a strengthened balance sheet) and a positive earnings outlook (loan-growth guidance and an accretive acquisition plan). Valuation is supportive with a low P/E, while technical indicators point to only moderate/soft near-term momentum.

Positive Factors

High profitability margins

Sustained high net and EBIT margins indicate strong fee and interest income mix and disciplined expense control. Durable margins provide a buffer against cyclical revenue swings, support internal capital generation, and enable continued dividends and selective reinvestment over the medium term.

Conservative balance sheet and capital

Very low leverage and healthy tangible equity ratios point to a conservative capital posture that supports organic loan growth, absorption of credit stress, and funding of acquisitions. Strong capital metrics preserve strategic optionality and lower refinancing or liquidity risk over multiple quarters.

Accretive, scale-building M&A

The Bank of Houston acquisition materially expands market presence in Houston, adds >$1B in regional loans and deposit scale, and is projected to earn back tangible book in <3 years. The transaction increases franchise diversification and supports durable revenue and cost synergies.

Negative Factors

Weakening revenue growth trend

A nearly 10% TTM revenue decline signals structural pressures in mortgage or noninterest income streams and greater sensitivity to rate-driven volume cycles. Persisting revenue weakness would require stronger loan origination or successful M&A to sustain EPS growth beyond short-term expense control.

NIM compression risk

Management’s guidance for potential NIM pressure as loan yields moderate creates a structural margin risk if rate cuts and competitive pricing persist. Over several quarters, reduced spreads would directly lower net interest income unless offset by higher volumes or lower funding costs.

Rising credit provisioning and charge-offs

A marked increase in provisions and rising auto charge-offs indicate emerging asset quality pressure tied to late-quarter loan growth. If charge-off trends persist, they will erode earnings power and require higher ACL coverage, constraining capital deployment and margin of safety over coming quarters.

South Plains Financial Business Overview & Revenue Model

Company Description

South Plains Financial, Inc. operates as a bank holding company for City Bank that provides commercial and consumer financial services to small and medium-sized businesses and individuals. The company operates through two segments, Banking and Insurance. It offers deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificate of deposits. The company also provides commercial real estate loans; general and specialized commercial loans, including agricultural production and real estate, energy, finance, investment, and insurance loans, as well as loans to goods, services, restaurant and retail, construction, and other industries; residential construction loans; and 1-4 family residential loans, auto loans, and other loans for recreational vehicles or other purposes. In addition, it offers crop insurance products; trust products and services; investment services; mortgage banking services; online and mobile banking services; and debit and credit cards. The company operates 25 full-service banking locations; and 15 loan production offices located throughout Texas and Eastern New Mexico. South Plains Financial, Inc. was founded in 1941 and is headquartered in Lubbock, Texas.

How the Company Makes Money

South Plains Financial generates revenue primarily through interest income from its loan portfolio, which includes commercial loans, consumer loans, and mortgages. Additionally, the company earns income from service fees associated with deposit accounts and treasury management services. Other revenue streams include gains from the sale of loans and investment securities. The bank's ability to manage its interest rate spread effectively and maintain a healthy loan-to-deposit ratio significantly influences its profitability. Furthermore, partnerships with local businesses and community organizations enhance its customer base and contribute to steady earnings.

South Plains Financial Financial Statement Overview

Summary

Strong and improving fundamentals overall: steady revenue growth with solid profitability, a meaningfully strengthened balance sheet (lower leverage and healthy ROE), and generally supportive cash generation. The score is tempered by post-2023 margin softness and some cash-flow variability.

Income Statement

Revenue has grown steadily from 2021–2025, with a particularly strong step-up in 2025. Profitability is solid with consistently healthy net margins (roughly high-teens to mid-20s) and strong operating profitability, though margins peaked in 2022–2023 and softened in 2024 before improving again in 2025. Overall earnings power looks durable, but the post-2023 margin compression keeps this from scoring higher.

Balance Sheet

Leverage improved meaningfully: debt relative to equity declined from elevated levels in 2020 to a low level by 2025, alongside rising equity. Returns on equity have remained healthy (generally low-teens, peaking mid-teens in 2022–2023), indicating the company is generating solid profits without relying on excessive balance-sheet leverage. The main watch item is that returns have moderated versus the 2022–2023 highs, even as the balance sheet has strengthened.

Cash Flow

Cash generation is generally supportive of earnings: free cash flow has tracked close to net income in most years, and operating cash flow rebounded strongly after a weak 2020. However, cash flow has been more volatile than earnings (notably the 2020 drop and the 2023 decline in free cash flow), even though 2025 shows a strong recovery and growth. Overall cash conversion is good, but variability lowers the score.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	296.89M	283.10M	248.51M	231.94M	227.51M
Gross Profit	206.69M	185.00M	171.62M	211.86M	216.16M
EBITDA	74.07M	69.80M	85.83M	80.12M	79.56M
Net Income	58.47M	49.72M	62.74M	58.24M	58.61M
Balance Sheet
Total Assets	4.48B	4.23B	4.20B	3.94B	3.90B
Cash, Cash Equivalents and Short-Term Investments	625.86M	627.32M	514.02M	936.59M	1.21B
Total Debt	60.49M	110.35M	110.17M	122.35M	122.17M
Total Liabilities	3.99B	3.79B	3.80B	3.59B	3.49B
Stockholders Equity	493.84M	438.95M	407.11M	357.01M	407.43M
Cash Flow
Free Cash Flow	71.83M	56.03M	53.86M	119.12M	93.35M
Operating Cash Flow	77.49M	59.38M	58.54M	123.59M	96.27M
Investing Cash Flow	-68.22M	-13.93M	-143.38M	-408.86M	-159.84M
Financing Cash Flow	184.09M	-16.53M	180.11M	33.33M	250.08M

South Plains Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPFI, the sentiment is Negative. The current price of 40.45 is below the 20-day moving average (MA) of 41.56, below the 50-day MA of 41.17, and above the 200-day MA of 38.72, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 37.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPFI.

South Plains Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMBC	79 Outperform	$685.27M	9.08	11.54%	1.59%	9.34%	25.21%
SPFI	75 Outperform	$660.61M	10.33	12.51%	1.57%	5.87%	37.99%
SMBK	75 Outperform	$649.79M	12.33	9.01%	0.84%	13.41%	41.78%
HTBK	71 Outperform	$747.13M	12.18	6.83%	4.16%	8.23%	-0.07%
IBCP	69 Neutral	$684.98M	9.81	14.51%	3.09%	4.29%	10.56%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EGBN	52 Neutral	$736.62M	-5.06	-10.24%	2.40%	-8.51%	-185.08%

South Plains Financial Corporate Events

South Plains Financial Launches New $10 Million Buyback

On February 18, 2026, South Plains Financial, Inc. said its board approved a new stock repurchase program authorizing buybacks of up to $10 million of its common stock. The program, announced publicly on February 23, 2026, is scheduled to run through February 23, 2027, though it may end sooner or be extended depending on board decisions and when the full amount is deployed.

The company may repurchase shares via open-market purchases, privately negotiated deals or trading plans, with the scale and timing of buybacks contingent on its share price, market conditions, regulatory requirements and available capital. The flexible authorization underscores management’s willingness to return capital to shareholders, but it does not require South Plains to repurchase a specific number of shares, leaving the overall impact on its capital structure and earnings per share dependent on execution over the next year.

The most recent analyst rating on (SPFI) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on South Plains Financial stock, see the SPFI Stock Forecast page.

South Plains Financial Increases Quarterly Dividend for Shareholders

On January 22, 2026, South Plains Financial, Inc. announced that its board of directors approved a 6% increase in the company’s quarterly cash dividend to $0.17 per share of common stock, up from the dividend declared in November 2025. The dividend is scheduled to be paid on February 17, 2026, to shareholders of record as of the close of business on February 2, 2026, signaling the company’s continued willingness to return capital to investors and suggesting confidence in its ongoing financial performance and stability.

The most recent analyst rating on (SPFI) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on South Plains Financial stock, see the SPFI Stock Forecast page.