South Plains Financial (SPFI)
NASDAQ:SPFI
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South Plains Financial
(NASDAQ:SPFI)
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Rating:66Neutral
Price Target:
$42.00
â–¼(-5.45% Downside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by solid financial fundamentals (profitability, improving leverage, and strong cash conversion) and a constructive earnings outlook supported by stable margins, deposit growth, and improving credit. These are meaningfully offset by weak technicals (below key moving averages with negative MACD) and only moderately attractive valuation support.
Positive Factors
Conservative balance sheet and capitalization
Low leverage and a rising tangible common equity ratio provide durable financial flexibility. Conservative capital supports lending, cushions credit cycles, funds M&A integration and allows continued dividends/buybacks without forcing distressed funding actions, strengthening long-term resilience.
Negative Factors
Near-term loan growth pressure from payoffs
Early payoffs and seasonal agricultural paydowns reduce interest-earning assets and compress organic loan growth. Even with a healthy pipeline, converting commitments to funded loans takes time, making loan growth and net interest income expansion uncertain over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and capitalization
Low leverage and a rising tangible common equity ratio provide durable financial flexibility. Conservative capital supports lending, cushions credit cycles, funds M&A integration and allows continued dividends/buybacks without forcing distressed funding actions, strengthening long-term resilience.
Read all positive factors
South Plains Financial (SPFI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$775.79M
Dividend Yield1.57%
Average Volume (3M)106.21K
Price to Earnings (P/E)11.8
Beta (1Y)0.81
Revenue Growth3.76%
EPS Growth19.82%
CountryUS
Employees528
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.73
Shares Outstanding19,145,754
10 Day Avg. Volume88,232
30 Day Avg. Volume106,209
Financial Highlights & Ratios
PEG Ratio0.57
Price to Book (P/B)1.28
Price to Sales (P/S)2.12
P/FCF Ratio8.78
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue2.26
Enterprise Value/Gross Profit3.20
Enterprise Value/Ebitda8.46
Forecast
1Y Price Target
$46.50Price Target Upside4.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)3.94
Revenue Forecast (FY)$250.70M
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 Ins...
How the Company Makes Money
SPFI primarily earns money through (1) net interest income and (2) noninterest income. Net interest income is generated from the spread between interest earned on interest-earning assets—most notably loans to commercial and consumer customers and,...
South Plains Financial Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call balanced several encouraging operational and strategic developments against near-term integration costs, loan payoffs and macroeconomic uncertainties. Key positives included completion of the Bank of Houston acquisition with attractive accretion guidance, solid deposit growth, stable NIM/loan yields, improving credit quality with a materially lower provision, continued mortgage business profitability, and a healthy capital position with a rising tangible book value per share. Offsetting these were a quarter-over-quarter EPS decline driven by acquisition-related expenses and an SBIC loss, a modest decline in loan balances due to expected payoffs (including another anticipated multifamily payoff), higher noninterest expenses related to compensation and acquisition activity, and external macro risks that could dampen loan growth and limit further funding-cost reductions. On balance, the operational momentum and strategic positives (including accretion and pipeline/unfunded commitments) outweigh the near-term headwinds.Positive Updates
Completed Bank of Houston Acquisition; Positive Pro Forma Metrics
Merger with Bank of Houston closed April 1. Management expects the transaction to be ~11% accretive to earnings in 2027 with tangible book value earn-back of under 3 years. Pro forma combined bank NIM reported at 4.02% and pro forma cost of deposits at 210 bps. BOH stood at ~$632M loans and $596M deposits at quarter end.
Negative Updates
Quarterly EPS Decline
Diluted EPS declined to $0.85 from $0.90 quarter-over-quarter, a decrease of ~5.6%. Management attributed the decline primarily to acquisition-related expenses and an SBIC investment loss (~$800k), partially offset by a lower provision for credit losses.
Read all updates
Q1-2026 Updates
Positive
Negative
Completed Bank of Houston Acquisition; Positive Pro Forma Metrics
Merger with Bank of Houston closed April 1. Management expects the transaction to be ~11% accretive to earnings in 2027 with tangible book value earn-back of under 3 years. Pro forma combined bank NIM reported at 4.02% and pro forma cost of deposits at 210 bps. BOH stood at ~$632M loans and $596M deposits at quarter end.
Read all positive updates
Company Guidance
Management reiterated guidance to deliver full‑year loan growth toward the lower end of its mid‑to‑high single‑digit target (they also said they’re comfortable with low‑ to mid‑single‑digit growth), while aiming to maintain margin and profitability — Q1 diluted EPS was $0.85 (vs. $0.90 linked), net interest income $43.0M, tax‑equivalent NIM 4.04% (Q4: 4.00%), loan yield 6.83% (Q4: 6.79%) with expectation loan yields will moderate, loans HFI $3.1B (down $41M q/q; major‑metro loans $1.0B, down $23M), strong unfunded commitments (largely construction), deposits $4.03B (up $154M, +4%) with noninterest‑bearing deposits 25.7%, cost of deposits 1.97% (down 4 bps), pro forma combined cost of deposits 210 bps and pro forma NIM 4.02% (BOH: loans $632M, deposits $596M, non‑interest bearing 16%, BOH deposit cost 342 bps, BOH NIM 3.9%), tangible common equity / tangible assets 10.48%, tangible book value per share $29.65 (up from $29.05), allowance for credit losses / loans 1.44% with a $0.26M provision (Q4: $1.8M), NPLs down $4.8M, net charge‑offs down $460k, noninterest income $11.3M (21% of revenues), noninterest expense $35.5M (+$2.5M; ~$1.5M acquisition‑related), and an expectation the Bank of Houston merger will be ~11% accretive to 2027 EPS with a tangible book earn‑back under 3 years; the Board also authorized a $0.17 quarterly dividend (28th consecutive).South Plains Financial Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 298.63M | 296.89M | 283.10M | 248.51M | 231.94M | 227.51M |
| Gross Profit | 210.21M | 206.69M | 185.00M | 171.62M | 211.86M | 216.16M |
| EBITDA | 79.61M | 74.07M | 69.80M | 85.83M | 80.12M | 79.56M |
| Net Income | 60.72M | 58.47M | 49.72M | 62.74M | 58.24M | 58.61M |
Balance Sheet | ||||||
| Total Assets | 4.65B | 4.48B | 4.23B | 4.20B | 3.94B | 3.90B |
| Cash, Cash Equivalents and Short-Term Investments | 648.73M | 625.86M | 627.32M | 514.02M | 936.59M | 1.21B |
| Total Debt | 60.49M | 60.49M | 110.35M | 110.17M | 122.35M | 122.17M |
| Total Liabilities | 4.14B | 3.99B | 3.79B | 3.80B | 3.59B | 3.49B |
| Stockholders Equity | 504.94M | 493.84M | 438.95M | 407.11M | 357.01M | 407.43M |
Cash Flow | ||||||
| Free Cash Flow | 61.69M | 71.83M | 56.03M | 53.86M | 119.12M | 93.35M |
| Operating Cash Flow | 67.56M | 77.49M | 59.38M | 58.54M | 123.59M | 96.27M |
| Investing Cash Flow | -55.36M | -68.22M | -13.93M | -143.38M | -408.86M | -159.84M |
| Financing Cash Flow | 173.49M | 184.09M | -16.53M | 180.11M | 33.33M | 250.08M |
South Plains Financial Technical Analysis
Neutral
44.42
Price Trends
41.64
Negative
41.31
Negative
39.85
Positive
Market Momentum
-0.59
Negative
47.21
Neutral
67.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPFI, the sentiment is Neutral. The current price of 44.42 is above the 20-day moving average (MA) of 40.54, above the 50-day MA of 41.64, and above the 200-day MA of 39.85, indicating a neutral trend. The MACD of -0.59 indicates Negative momentum. The RSI at 47.21 is Neutral, neither overbought nor oversold. The STOCH value of 67.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SPFI.
South Plains Financial Risk Analysis
South Plains Financial disclosed 65 risk factors in its most recent earnings report. South Plains Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
South Plains Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $759.97M | 10.27 | 12.00% | 1.59% | 4.91% | 20.39% | |
76 Outperform | $698.55M | 10.15 | 14.15% | 3.09% | -0.77% | 6.41% | |
73 Outperform | $711.98M | 12.01 | 9.72% | 0.84% | 12.24% | 38.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $775.79M | 11.75 | 12.58% | 1.57% | 3.76% | 19.82% | |
53 Neutral | $798.68M | 12.85 | -10.01% | 2.40% | -10.85% | -153.92% |
* Financial Sector Average
SPFI
South Plains Financial
40.52
6.28
18.35%
EGBN
Eagle Bancorp
26.19
8.92
51.66%
SMBC
Southern Missouri Bancorp
68.99
17.32
33.52%
IBCP
Independent Bank
33.90
3.49
11.48%
SMBK
SmartFinancial
41.64
11.01
35.95%
South Plains Financial Corporate Events
Executive/Board ChangesShareholder Meetings
South Plains Financial Shareholders Approve Directors and Governance Matters
Positive
May 14, 2026
South Plains Financial, Inc. held its 2026 Annual Meeting of Shareholders virtually on May 11, 2026, with 14,766,189 of 16,342,095 eligible shares represented, constituting a quorum for conducting business. Shareholders elected two Class I directo...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
South Plains Financial Completes BOH Holdings Acquisition, Expands Footprint
Positive
Apr 28, 2026
South Plains Financial, Inc. reported first-quarter 2026 net income of $14.5 million, up from $12.3 million a year earlier but down from $15.3 million in the fourth quarter of 2025, with diluted EPS of $0.85 and a tax-equivalent net interest margi...
Dividends
South Plains Financial Declares Quarterly Cash Dividend Payment
Positive
Apr 16, 2026
On April 16, 2026, South Plains Financial, Inc., parent of City Bank and a major independent bank operator in West Texas and several other Texas and New Mexico markets, declared a quarterly cash dividend of $0.17 per share on its common stock. The...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
South Plains Financial Completes BOH Merger, Expands Houston Presence
Positive
Apr 1, 2026
South Plains Financial, Inc. announced that it completed its previously agreed merger with BOH Holdings, Inc. on April 1, 2026, with South Plains surviving as the parent and BOH’s subsidiary, Bank of Houston, merging into City Bank. As of De...
Business Operations and StrategyM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
South Plains Financial Advances BOH Holdings Merger Approvals
Positive
Mar 23, 2026
On March 23, 2026, South Plains Financial and BOH Holdings announced they had secured all required regulatory approvals and non-objections from the Federal Reserve, FDIC and Texas Department of Banking for South Plains’ acquisition of BOH. B...
Stock Buyback
South Plains Financial Launches New $10 Million Buyback
Positive
Feb 23, 2026
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 thro...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.