South Plains Financial (SPFI) AI Stock Analysis

• Market Cap: $637.13M
• Dividend Yield: 1.56%
• Average Volume (3M): 51.12K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.80
• Revenue Growth: 6.07%
• EPS Growth: 20.59%
• Country: US
• Employees: 528
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.86
• Shares Outstanding: 16,236,700
• 10 Day Avg. Volume: 57,936
• 30 Day Avg. Volume: 51,118
• 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: 1.04
• Enterprise Value/Revenue: 2.28
• Enterprise Value/Gross Profit: 3.39
• Enterprise Value/Ebitda: 8.91
• 1Y Price Target: $43.00
• Price Target Upside: 9.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: $43.00 ▲(9.58% Upside)

South Plains Financial's overall stock score reflects solid financial performance and positive earnings call insights, particularly in loan growth and net interest margin expansion. However, technical indicators suggest potential short-term bearish momentum, and cash flow management remains an area for improvement. The stock's valuation is reasonable, providing a balanced risk-reward profile.

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 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 exhibits strong financial health with robust revenue and profit growth, efficient cost management, and strong cash flow. The balance sheet is stable with low leverage, although there is a moderate reliance on liabilities.

Income Statement

South Plains Financial has demonstrated strong revenue growth, with a TTM (Trailing-Twelve-Months) revenue of $283.45M. The Gross Profit Margin is robust at approximately 66.2%, indicating efficiency in managing costs relative to revenue. The Net Profit Margin stands at about 18%, reflecting solid profitability. Revenue growth from the previous year is notable, with an increase from $248.52M to $283.45M, indicating a healthy upward trajectory. The EBIT and EBITDA Margins are also strong, at 22.9% and 25.2% respectively, showcasing effective operational management.

Balance Sheet

The company maintains a stable financial position with a Debt-to-Equity Ratio of 0.25, suggesting conservative leverage. The Return on Equity is impressive at 11.5%, highlighting effective use of shareholder capital. The Equity Ratio is approximately 10.1%, indicating a moderate level of equity financing relative to total assets. However, the equity ratio suggests some reliance on liabilities, which could pose risks in adverse market conditions.

Cash Flow

Operating Cash Flow is strong at $66.32M in the TTM, providing a solid foundation for financial flexibility. The Free Cash Flow has shown growth, with a TTM value of $62.30M compared to previous periods. The Operating Cash Flow to Net Income Ratio is approximately 1.3, demonstrating effective conversion of income into cash. The Free Cash Flow to Net Income Ratio is also healthy at about 1.2, indicating good cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	289.35M	283.10M	248.51M	231.94M	227.51M	235.58M
Gross Profit	194.59M	185.00M	171.62M	211.86M	216.16M	194.06M
EBITDA	74.08M	69.80M	85.83M	80.12M	79.56M	63.18M
Net Income	54.61M	49.72M	62.74M	58.24M	58.61M	45.35M
Balance Sheet
Total Assets	4.36B	4.23B	4.20B	3.94B	3.90B	3.60B
Cash, Cash Equivalents and Short-Term Investments	1.04B	627.32M	514.02M	936.59M	1.21B	1.10B
Total Debt	111.80M	110.35M	110.17M	122.35M	122.17M	223.53M
Total Liabilities	3.91B	3.79B	3.80B	3.59B	3.49B	3.24B
Stockholders Equity	454.07M	438.95M	407.11M	357.01M	407.43M	370.05M
Cash Flow
Free Cash Flow	58.22M	56.03M	53.86M	119.12M	93.35M	2.32M
Operating Cash Flow	62.88M	59.38M	58.54M	123.59M	96.27M	5.63M
Investing Cash Flow	13.66M	-13.93M	-143.38M	-408.86M	-159.84M	-156.23M
Financing Cash Flow	95.94M	-16.53M	180.11M	33.33M	250.08M	292.81M

South Plains Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.24
• 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 39.24 is below the 20-day moving average (MA) of 40.05, below the 50-day MA of 39.44, and above the 200-day MA of 35.83, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 45.91 is Neutral, neither overbought nor oversold. The STOCH value of 33.96 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	76 Outperform	620.00M	15.83	3.04%	5.15%	6.63%	-19.64%
THFF	73 Outperform	685.09M	11.00	8.61%	3.43%	20.07%	21.46%
ORRF	73 Outperform	674.39M	15.48	4.27%	2.95%	89.40%	-29.07%
TRST	72 Outperform	710.31M	13.45	7.72%	3.87%	5.39%	8.80%
SPFI	71 Outperform	$637.13M	12.20	12.52%	1.56%	6.07%	20.59%
HIFS	69 Neutral	578.16M	17.79	6.53%	0.95%	6.63%	62.84%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

South Plains Financial Corporate Events

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.

South Plains Financial Increases Quarterly Dividend by 7%

On July 17, 2025, South Plains Financial, Inc. announced a 7% increase in its quarterly cash dividend, raising it to $0.16 per share of common stock. This dividend will be paid on August 11, 2025, to shareholders recorded by July 28, 2025, reflecting the company’s commitment to delivering value to its stakeholders.

South Plains Financial Reports Strong Q2 2025 Results

South Plains Financial, Inc. reported strong financial results for the second quarter of 2025, with net income rising to $14.6 million, up from $12.3 million in the previous quarter and $11.1 million in the same quarter of 2024. The company achieved a net interest margin of 4.07% and saw growth in net interest income, driven by increased loan interest income and a recovery of interest from a previously nonaccrual loan. Despite a decrease in total deposits from the previous quarter, the company experienced year-over-year growth in deposits, supported by organic growth in retail and commercial deposits. The company is strategically focused on expanding its lending platform and has recruited experienced lenders to enhance its market presence.