South Plains Financial (SPFI) AI Stock Analysis

• Market Cap: $678.79M
• Dividend Yield: 1.57%
• Average Volume (3M): 64.66K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.79
• Revenue Growth: 5.87%
• EPS Growth: 37.99%
• Country: US
• Employees: 528
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.90
• Shares Outstanding: 16,293,577
• 10 Day Avg. Volume: 71,001
• 30 Day Avg. Volume: 64,660
• PEG Ratio: -0.61
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 2.02
• P/FCF Ratio: 10.21
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 3.39
• Enterprise Value/Ebitda: 8.34
• 1Y Price Target: $45.33
• Price Target Upside: 8.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.67
• Revenue Forecast (FY): $242.84M

• Rating: 77 Outperform
• Price Target: $47.00 ▲(12.82% Upside)

The score is driven primarily by solid financial performance (strong margins, low leverage, and healthy ROE) and a favorable earnings outlook tied to planned loan growth and an accretive acquisition. Technicals are moderately supportive with price above key moving averages, while valuation is reasonable at a mid-teens-to-low-teens P/E with a modest dividend. Key risks highlighted include possible near-term NIM pressure and higher credit provisioning/charge-offs.

Positive Factors

High profitability margins

Sustained high net and EBIT margins indicate strong fee and interest income mix and disciplined expense control. Durable margins provide a buffer against cyclical revenue swings, support internal capital generation, and enable continued dividends and selective reinvestment over the medium term.

Conservative balance sheet and capital

Very low leverage and healthy tangible equity ratios point to a conservative capital posture that supports organic loan growth, absorption of credit stress, and funding of acquisitions. Strong capital metrics preserve strategic optionality and lower refinancing or liquidity risk over multiple quarters.

Accretive, scale-building M&A

The Bank of Houston acquisition materially expands market presence in Houston, adds >$1B in regional loans and deposit scale, and is projected to earn back tangible book in <3 years. The transaction increases franchise diversification and supports durable revenue and cost synergies.

Negative Factors

Weakening revenue growth trend

A nearly 10% TTM revenue decline signals structural pressures in mortgage or noninterest income streams and greater sensitivity to rate-driven volume cycles. Persisting revenue weakness would require stronger loan origination or successful M&A to sustain EPS growth beyond short-term expense control.

NIM compression risk

Management’s guidance for potential NIM pressure as loan yields moderate creates a structural margin risk if rate cuts and competitive pricing persist. Over several quarters, reduced spreads would directly lower net interest income unless offset by higher volumes or lower funding costs.

Rising credit provisioning and charge-offs

A marked increase in provisions and rising auto charge-offs indicate emerging asset quality pressure tied to late-quarter loan growth. If charge-off trends persist, they will erode earnings power and require higher ACL coverage, constraining capital deployment and margin of safety over coming quarters.

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 primarily through interest income from its loan portfolio, which includes commercial loans, consumer loans, and mortgages. Additionally, the company earns income from service fees associated with deposit accounts and treasury management services. Other revenue streams include gains from the sale of loans and investment securities. The bank's ability to manage its interest rate spread effectively and maintain a healthy loan-to-deposit ratio significantly influences its profitability. Furthermore, partnerships with local businesses and community organizations enhance its customer base and contribute to steady earnings.

South Plains Financial Financial Statement Overview

Summary

Solid overall fundamentals supported by strong profitability (TTM net margin 22.81%, EBIT margin 28.92%) and a conservative balance sheet (debt-to-equity 0.13; ROE 13.16%). Cash generation is mixed: free cash flow grew 17.14% and FCF-to-net income is strong (92.58%), but operating cash flow conversion to net income is low and revenue growth has declined (-9.54% TTM).

Income Statement

South Plains Financial shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 9.54%, which is a concern. However, the company maintains a strong net profit margin of 22.81% and a healthy EBIT margin of 28.92%, indicating efficient cost management and profitability. Historical data shows fluctuating revenue growth, but consistent profitability margins suggest stability in operations.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.13 in the TTM, indicating conservative leverage. Return on equity is strong at 13.16%, showcasing effective use of equity to generate profits. The equity ratio is healthy, suggesting a stable capital structure. The trend of decreasing debt levels over the years further strengthens the financial stability of the company.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 17.14% growth in free cash flow in the TTM. However, the operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is robust at 92.58%, reflecting strong cash generation relative to net income. Historical fluctuations in cash flow growth rates suggest some volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	292.62M	283.10M	248.51M	231.94M	227.51M	235.58M
Gross Profit	200.70M	185.00M	171.62M	211.86M	216.16M	194.06M
EBITDA	81.66M	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	799.28M	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	3.23B
Stockholders Equity	477.80M	438.95M	407.11M	357.01M	407.43M	370.05M
Cash Flow
Free Cash Flow	63.59M	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: Positive
• Last Price: 41.66
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 41.66 is above the 20-day moving average (MA) of 40.33, above the 50-day MA of 39.60, and above the 200-day MA of 37.70, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 58.84 is Neutral, neither overbought nor oversold. The STOCH value of 30.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPFI.

South Plains Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTBK	79 Outperform	$781.22M	16.42	6.26%	4.16%	8.23%	-0.07%
IBCP	79 Outperform	$727.32M	10.75	14.51%	3.09%	4.29%	10.56%
SPFI	77 Outperform	$678.79M	12.11	12.54%	1.57%	5.87%	37.99%
SMBC	77 Outperform	$706.46M	10.82	11.54%	1.59%	9.34%	25.21%
SMBK	75 Outperform	$679.76M	13.40	9.01%	0.84%	13.41%	41.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EGBN	61 Neutral	$812.73M	-6.34	-10.24%	2.40%	-8.51%	-185.08%

South Plains Financial Corporate Events

South Plains Financial Increases Quarterly Dividend for Shareholders

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 dividend is scheduled to be paid on February 17, 2026, to shareholders of record as of the close of business on February 2, 2026, signaling the company’s continued willingness to return capital to investors and suggesting confidence in its ongoing financial performance and stability.

The most recent analyst rating on (SPFI) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on South Plains Financial stock, see the SPFI Stock Forecast page.

South Plains Financial Announces Merger with BOH Holdings

On December 1, 2025, South Plains Financial, Inc. (SPFI) announced a definitive merger agreement to acquire BOH Holdings, Inc. (BOH) in an all-stock transaction valued at approximately $105.9 million. This merger, expected to close in the second quarter of 2026, will strengthen SPFI’s position as a leading Texas community bank, expanding its geographic footprint in the Houston metropolitan statistical area. The merger is anticipated to be accretive to SPFI’s earnings per share by 11% in 2027 and will result in a combined entity with approximately $5.4 billion in assets. The transaction, which has been unanimously approved by the boards of both companies, is subject to customary closing conditions, including regulatory approvals and shareholder consent.

The most recent analyst rating on (SPFI) stock is a Buy 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.