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South Plains Financial
(NASDAQ:SPFI)
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Rating:66Neutral
Price Target:
$47.00
â–²(5.81% Upside)
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
Profitability & margins
Sustained TTM net and EBIT margins indicate durable core profitability from lending and fee businesses. Healthy margins support internal capital generation and dividend continuity, providing resilience through rate cycles and underpinning multi‑year earnings power even if growth moderates.
Negative Factors
Loan payoffs pressuring growth
Repeated early payoffs, including sizable multifamily and seasonal agricultural reductions, shrink the bank’s earning asset base and slow organic loan growth. Over several quarters this can limit net interest income expansion unless origination pace or acquisition activity sustainably replaces payoffs.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & margins
Sustained TTM net and EBIT margins indicate durable core profitability from lending and fee businesses. Healthy margins support internal capital generation and dividend continuity, providing resilience through rate cycles and underpinning multi‑year earnings power even if growth moderates.
Read all positive factors
South Plains Financial (SPFI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$794.17M
Dividend Yield1.57%
Average Volume (3M)158.08K
Price to Earnings (P/E)11.3
Beta (1Y)0.77
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. Volume230,239
30 Day Avg. Volume158,084
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/Revenue2.30
Enterprise Value/Gross Profit3.27
Enterprise Value/Ebitda8.33
Forecast
1Y Price Target
$48.67Price Target Upside9.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)3.87
Revenue Forecast (FY)$248.83M
South Plains Financial Business Overview & Revenue Model
Company Description
South Plains Financial, Inc. functions as the parent entity for City Bank, providing a comprehensive suite of commercial and consumer financial services to both individuals and small to mid-sized businesses. Its operations are structured around tw...
How the Company Makes Money
SPFI makes money primarily through its bank subsidiary by earning interest and fees from financial services. The largest revenue driver is net interest income: the bank collects interest on loans (e.g., commercial real estate, commercial and indus...
South Plains Financial Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 17, 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 | 82.57M | 79.89M | 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 | 855.15M | 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
Positive
44.42
Price Trends
41.18
Positive
41.61
Positive
40.21
Positive
Market Momentum
0.35
Positive
51.10
Neutral
28.61
Neutral
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 44.42 is above the 20-day moving average (MA) of 42.19, above the 50-day MA of 41.18, and above the 200-day MA of 40.21, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 51.10 is Neutral, neither overbought nor oversold. The STOCH value of 28.61 is Neutral, 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 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 | $821.66M | 12.44 | 12.00% | 1.59% | 4.91% | 20.39% | |
74 Outperform | $723.89M | 10.50 | 14.15% | 3.09% | -0.77% | 6.41% | |
73 Outperform | $787.21M | 14.65 | 9.72% | 0.84% | 12.24% | 38.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $794.17M | 11.30 | 12.58% | 1.57% | 3.76% | 19.82% | |
52 Neutral | $798.68M | -7.08 | -10.01% | 2.40% | -10.85% | -153.92% |
* Financial Sector Average
SPFI
South Plains Financial
42.14
5.34
14.53%
EGBN
Eagle Bancorp
26.83
5.76
27.37%
SMBC
Southern Missouri Bancorp
74.75
18.27
32.35%
IBCP
Independent Bank
35.50
2.27
6.82%
SMBK
SmartFinancial
46.16
10.83
30.66%
South Plains Financial Corporate Events
Executive/Board ChangesStock Buyback
South Plains Financial Announces Planned CEO Succession Transition
Neutral
Jun 17, 2026
On June 17, 2026, South Plains Financial announced that long-time Chairman and Chief Executive Officer Curtis C. Griffith notified the board of his decision to retire as CEO effective December 31, 2026, while remaining Chairman and a director of b...
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...
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.