South Plains Financial (SPFI) AI Stock Analysis

• Market Cap: $590.85M
• Dividend Yield: 1.66%
• Average Volume (3M): 49.32K
• Price to Earnings (P/E): 10.4
• 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): 0.96
• Shares Outstanding: 16,236,700
• 10 Day Avg. Volume: 42,613
• 30 Day Avg. Volume: 49,324
• PEG Ratio: -0.56
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 2.02
• P/FCF Ratio: 10.21
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 2.52
• Enterprise Value/Gross Profit: 13.41
• Enterprise Value/Ebitda: 8.23
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $40.00 ▲(4.44% Upside)

South Plains Financial's overall score reflects a strong financial foundation and positive earnings call insights. However, technical indicators suggest bearish momentum, and valuation metrics indicate moderate attractiveness. The company's strategic initiatives and solid balance sheet support its potential for future growth.

South Plains Financial Business Overview & Revenue Model

Company Description

South Plains Financial (SPFI) is a financial services holding company based in the United States, primarily engaged in providing a range of banking and financial services through its subsidiary, South Plains Bank. The company operates in the banking sector, offering services that include personal and commercial banking, mortgage lending, and treasury management solutions. SPFI is committed to serving the diverse financial needs of its customers across Texas and New Mexico, focusing on community-oriented banking and relationship-based customer service.

How the Company Makes Money

South Plains Financial generates revenue through various key streams typical of banking institutions. The primary source of income is net interest income, which is earned from the difference between interest earned on loans and interest paid on deposits. SPFI offers a variety of loan products, including commercial, consumer, and real estate loans, which contribute significantly to its interest income. Additionally, the bank earns non-interest income from services such as transaction fees, wealth management, and mortgage origination fees. Significant partnerships with local businesses and community organizations enhance customer acquisition and retention, further driving the bank's profitability. Overall, SPFI's revenue model is built on both interest-based and fee-based income, supported by a strong community presence.

South Plains Financial Financial Statement Overview

Summary

South Plains Financial demonstrates solid financial performance with consistent revenue growth and strong profitability margins. The balance sheet is stable with manageable leverage, though increasing debt levels warrant attention. Cash flow management shows some weaknesses, particularly in operating cash flow generation. Overall, the company is well-positioned but should focus on enhancing operational efficiency and cash flow stability.

Income Statement

South Plains Financial shows a steady revenue growth with a TTM increase of 2.08%. The gross profit margin is strong at 67.25%, indicating efficient cost management. Net profit margin has improved to 18.87% in the TTM, reflecting enhanced profitability. However, EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting some pressure on operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.25, indicating prudent leverage management. Return on equity is solid at 12.27%, showcasing effective use of equity capital. The equity ratio stands at 10.40%, reflecting a stable capital structure. However, the slight increase in debt levels over time could pose a risk if not managed carefully.

Cash Flow

Operating cash flow to net income ratio is low at 1.68%, suggesting limited cash generation relative to net income. Free cash flow growth has declined by 6.55% in the TTM, indicating potential challenges in cash flow management. However, the free cash flow to net income ratio remains robust at 92.58%, highlighting strong cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	261.76M	283.10M	248.51M	231.94M	227.51M	235.58M
Gross Profit	49.21M	185.00M	171.62M	211.86M	216.16M	194.06M
EBITDA	80.24M	69.80M	85.83M	80.12M	79.56M	63.18M
Net Income	59.71M	49.72M	62.74M	58.24M	58.61M	45.35M
Balance Sheet
Total Assets	4.48B	4.23B	4.20B	3.94B	3.90B	3.60B
Cash, Cash Equivalents and Short-Term Investments	627.21M	627.32M	514.02M	936.59M	1.21B	1.10B
Total Debt	60.49M	110.35M	110.17M	122.35M	122.17M	223.53M
Total Liabilities	4.00B	3.79B	3.80B	3.59B	3.49B	3.24B
Stockholders Equity	477.80M	438.95M	407.11M	357.01M	407.43M	370.05M
Cash Flow
Free Cash Flow	68.20M	56.03M	53.86M	119.12M	93.35M	2.32M
Operating Cash Flow	69.23M	59.38M	58.54M	123.59M	96.27M	5.63M
Investing Cash Flow	1.80M	-13.93M	-143.38M	-408.86M	-159.84M	-156.23M
Financing Cash Flow	92.85M	-16.53M	180.11M	33.33M	250.08M	292.81M

South Plains Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 38.3 is above the 20-day moving average (MA) of 37.19, below the 50-day MA of 38.51, and above the 200-day MA of 36.05, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 42.56 is Neutral, neither overbought nor oversold. The STOCH value of 41.64 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
HTBK	75 Outperform	$651.95M	15.10	6.26%	4.97%	8.23%	-0.07%
SMBC	74 Outperform	$611.28M	9.92	11.54%	1.81%	9.34%	25.21%
SMBK	74 Outperform	$598.94M	12.83	9.01%	0.92%	12.06%	41.78%
SPFI	72 Outperform	$590.85M	10.38	12.97%	1.66%	5.87%	37.99%
IBCP	72 Outperform	$626.46M	9.29	14.51%	3.41%	4.29%	10.56%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EGBN	46 Neutral	$495.62M	―	-10.24%	3.10%	-8.47%	-185.08%

South Plains Financial Corporate Events

South Plains Financial’s Earnings Call Highlights Growth and Challenges

South Plains Financial’s recent earnings call reflected a generally positive sentiment, underscored by strong financial performance and strategic initiatives. The company reported significant improvements in earnings growth, capital ratios, and asset quality. Despite facing challenges such as a decrease in loans held for investment and noninterest income, along with higher-than-normal loan paydowns, South Plains Financial’s strategic initiatives and successful expansion of their lending team position them well for future growth.

South Plains Financial Reports Strong Q3 2025 Results

South Plains Financial, Inc., a bank holding company for City Bank, operates primarily in Texas and New Mexico, offering a wide range of commercial and consumer financial services. In its third quarter of 2025, South Plains Financial reported a net income of $16.3 million, marking an increase from both the previous quarter and the same quarter last year. The company’s diluted earnings per share rose to $0.96, reflecting strong earnings growth. The average cost of deposits decreased, and the net interest margin remained stable, indicating efficient financial management. Key financial metrics showed improvement, with a return on average assets of 1.47% and a tangible book value per share of $28.14. The company also reported a healthy capital position with a total risk-based capital ratio of 17.34%. Looking ahead, South Plains Financial aims to accelerate asset growth through organic expansion and potential mergers and acquisitions, supported by a robust lending platform and strategic investments in technology.

South Plains Financial Reports Strong Q3 2025 Results

South Plains Financial reported strong financial results for the third quarter of 2025, with net income rising to $16.3 million, up from $14.6 million in the previous quarter and $11.2 million in the same quarter last year. The company experienced growth in net interest income and a decrease in interest expenses, while also managing to improve the credit quality of its loan portfolio. Despite challenges such as higher than normal loan paydowns, South Plains is optimistic about accelerating growth next year by expanding its lending platform and potentially acquiring banks that align with its conservative culture and strategic goals.

The most recent analyst rating on (SPFI) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on South Plains Financial stock, see the SPFI Stock Forecast page.

South Plains Financial Redeems $50M Subordinated Notes

On September 30, 2025, South Plains Financial, Inc. redeemed the entire $50,000,000 outstanding principal amount of its 4.50% Fixed to Floating Rate Subordinated Notes due 2030. The redemption was carried out according to the terms of the Indenture with UMB Bank, National Association, and was approved by the company’s primary federal regulator on August 22, 2025.

The most recent analyst rating on (SPFI) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on South Plains Financial stock, see the SPFI Stock Forecast page.

South Plains Financial Adopts New Bylaws

On August 20, 2025, South Plains Financial, Inc. adopted new bylaws to align with recent changes in the Texas Business Organizations Code. These amendments include a 3% ownership threshold for shareholders to initiate derivative proceedings, electing governance under Section 21.419 of the TBOC, designating specific courts for internal entity claims, and waiving jury trials for such claims.

The most recent analyst rating on (SPFI) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on South Plains Financial stock, see the SPFI Stock Forecast page.