South Plains Financial Inc (SPFI)
NASDAQ:SPFI
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South Plains Financial
(NASDAQ:SPFI)
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Rating:75Outperform
Price Target:
$47.00
â–²(6.26% Upside)
Action:ReiteratedDate:04/02/26
The score is driven primarily by solid financial performance (steady growth, strong profitability, and improved balance-sheet strength). Supportive earnings guidance and positive corporate actions (completed BOH merger, buyback, and dividend increase) further bolster the outlook, while technicals are only moderately bullish and near-term margin/credit and integration-cost headwinds keep the score from being higher.
Positive Factors
Balance sheet strength
South Plains has materially reduced balance-sheet leverage while growing equity, producing healthy low‑teens ROE. Stronger capital ratios and rising tangible common equity (tangible common equity/tangible assets 10.61%) provide durable capacity to support loan growth, M&A, buybacks and dividends without risking solvency.
Negative Factors
NIM compression risk
Management flags the risk of net interest margin compression as loan yields moderate and competitive pressure emerges. Since net interest income is the core revenue source, sustained NIM pressure from lower rates or tighter spreads would structurally reduce core profitability and limit the bank's ability to grow earnings absent offsetting volume or fee gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
South Plains has materially reduced balance-sheet leverage while growing equity, producing healthy low‑teens ROE. Stronger capital ratios and rising tangible common equity (tangible common equity/tangible assets 10.61%) provide durable capacity to support loan growth, M&A, buybacks and dividends without risking solvency.
Read all positive factors
South Plains Financial (SPFI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$722.34M
Dividend Yield1.57%
Average Volume (3M)103.77K
Price to Earnings (P/E)10.3
Beta (1Y)0.81
Revenue Growth5.87%
EPS Growth37.99%
CountryUS
Employees528
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.90
Shares Outstanding16,331,423
10 Day Avg. Volume92,606
30 Day Avg. Volume103,765
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 Cap1.00
Enterprise Value/Revenue2.47
Enterprise Value/Gross Profit3.56
Enterprise Value/Ebitda9.24
Forecast
1Y Price Target
$47.50Price Target Upside7.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.84
Revenue Forecast (FY)$248.57M
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:Jan 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call highlighted meaningful full-year financial progress (17.8% EPS growth, >14% tangible book value growth, 33 bps NIM expansion year-over-year), solid deposit and loan growth, strong capital metrics, and a strategic, accretive M&A agreement (Bank of Houston) expected to materially increase scale in Houston. Near-term challenges were acknowledged: a modest quarterly EPS decline, higher provision for credit losses tied to late-quarter loan growth, modest NIM pressure and some consumer auto charge-off increases, plus integration and consulting costs tied to the acquisition. Management communicated confidence in organic growth, disciplined credit, and the accretive nature of the BOH transaction while warning of short-term headwinds (multifamily payoffs, loan-yield moderation). Overall, positive execution and strategic positioning outweigh manageable near-term pressures.Positive Updates
Strong Full-Year EPS Growth
Delivered a 17.8% increase in diluted earnings per share for full year 2025, demonstrating meaningful profitability improvement year-over-year.
Negative Updates
Quarterly EPS Decline
Diluted earnings per share fell to $0.90 in Q4 from $0.96 in the linked quarter, a decline of approximately 6.3%, primarily driven by a larger provision for credit losses and timing of loan funding/one-time interest items in the prior quarter.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year EPS Growth
Delivered a 17.8% increase in diluted earnings per share for full year 2025, demonstrating meaningful profitability improvement year-over-year.
Read all positive updates
Company Guidance
Management guided loan growth to mid‑ to high‑single digits in 2026 (driven by organic recruiting — roughly 50% of ~9 planned lender hires completed — and the pending Bank of Houston deal expected to close early Q2 2026; BOH: ~$772M assets, $633M loans, $629M deposits as of 9/30/25, projected ~11% EPS accretion in 2027 and tangible book earn‑back <3 years). They expect to keep NIM near current levels (tax‑equivalent NIM 4.00% in Q4 vs. 4.05% in Q3) though modest compression is possible, new loan yields were in the mid‑6% range (loan yield 6.79% in Q4), and net interest income was $43.0M in Q4. Deposits were $3.87B at 12/31/25 (up $253M or 7% YoY), noninterest‑bearing deposits were 26.4% of total, cost of deposits 2.01% (down 9 bps q/q) with a modest further decline in cost of funds expected in Q1. Credit guidance included a Q4 provision of $1.8M and an ACL-to-loans ratio of 1.44%; loans held for investment were $3.14B (+$91M q/q). Other notable metrics: Q4 diluted EPS $0.90 (FY2025 EPS +17.8% YoY), tangible book value per share $29.05, tangible common equity/tangible assets 10.61%, quarterly dividend $0.17 (27th consecutive), noninterest income $10.9M (20% of revenues), noninterest expense $33M, and the indirect auto portfolio totaled $241M (94% originated super‑prime/prime; 87.7% super‑prime/prime at quarter end; 30+ DPD 19 bps; consumer auto net charge‑offs $382k in Q4).South Plains Financial Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| 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
Positive
44.23
Price Trends
41.86
Positive
40.54
Positive
39.32
Positive
Market Momentum
0.55
Negative
72.79
Negative
95.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPFI, the sentiment is Positive. The current price of 44.23 is above the 20-day moving average (MA) of 41.76, above the 50-day MA of 41.86, and above the 200-day MA of 39.32, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 72.79 is Negative, neither overbought nor oversold. The STOCH value of 95.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPFI.
South Plains Financial Risk Analysis
South Plains Financial disclosed 64 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $742.03M | 9.08 | 11.54% | 1.59% | 9.34% | 25.21% | |
75 Outperform | $722.34M | 10.33 | 12.51% | 1.57% | 5.87% | 37.99% | |
74 Outperform | $823.50M | 12.18 | 6.83% | 4.16% | 8.23% | -0.07% | |
73 Outperform | $721.32M | 12.33 | 9.01% | 0.84% | 13.41% | 41.78% | |
70 Outperform | $713.80M | 9.04 | 14.20% | 3.09% | 4.29% | 10.56% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
48 Neutral | $804.93M | -5.06 | -10.24% | 2.40% | -8.51% | -185.08% |
* Financial Sector Average
SPFI
South Plains Financial
44.23
14.01
46.37%
EGBN
Eagle Bancorp
26.51
7.92
42.59%
HTBK
Heritage Commerce
13.37
5.59
71.96%
SMBC
Southern Missouri Bancorp
66.80
20.24
43.49%
IBCP
Independent Bank
34.67
7.08
25.68%
SMBK
SmartFinancial
42.19
15.33
57.07%
South Plains Financial Corporate Events
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...
DividendsFinancial Disclosures
South Plains Financial Increases Quarterly Dividend for Shareholders
Positive
Jan 22, 2026
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 d...
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.