South Plains Financial (SPFI) AI Stock Analysis

• Market Cap: $644.71M
• Dividend Yield: 1.57%
• Average Volume (3M): 56.10K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.78
• Revenue Growth: 5.87%
• EPS Growth: 37.99%
• Country: US
• Employees: 528
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.96
• Shares Outstanding: 16,247,839
• 10 Day Avg. Volume: 59,373
• 30 Day Avg. Volume: 56,103
• 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: 1.03
• Enterprise Value/Revenue: 2.26
• Enterprise Value/Gross Profit: 3.29
• Enterprise Value/Ebitda: 8.10
• 1Y Price Target: $43.67
• Price Target Upside: 10.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $44.00 ▲(10.89% Upside)

South Plains Financial's strong financial performance and strategic initiatives, including a significant merger, drive a positive outlook. Technical indicators support the stock's momentum, while valuation metrics suggest reasonable pricing. The earnings call and corporate events further bolster confidence in future growth.

Positive Factors

Merger with BOH Holdings

The merger with BOH Holdings is expected to expand SPFI's geographic footprint and enhance its market position, providing long-term growth opportunities and increasing earnings per share by 11% in 2027.

Strong Capital Ratios

High capital ratios indicate financial stability and the ability to withstand economic downturns, supporting future growth and lending capacity.

Lending Team Expansion

Expanding the lending team enhances SPFI's capacity to drive loan growth, supporting long-term revenue expansion and market presence.

Negative Factors

Decrease in Loans Held for Investment

A reduction in loans held for investment can limit interest income growth, impacting future revenue and profitability.

Decrease in Noninterest Income

A decline in noninterest income, particularly from mortgage banking, may reduce revenue diversification and stability.

Higher-Than-Normal Loan Paydowns

Increased loan paydowns can hinder loan portfolio growth, affecting interest income and overall financial performance.

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

South Plains Financial shows a mixed performance in its income statement with a decline in revenue growth but maintains strong profit margins. The balance sheet is solid with low leverage and strong equity returns. Cash flow is positive but has room for improvement in cash conversion efficiency.

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: 39.68
• 50DMA: Positive
• 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 Positive. The current price of 39.68 is below the 20-day moving average (MA) of 39.84, above the 50-day MA of 38.44, and above the 200-day MA of 37.02, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 54.80 is Neutral, neither overbought nor oversold. The STOCH value of 46.34 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
SMBC	80 Outperform	$690.42M	11.01	11.54%	1.59%	9.34%	25.21%
SPFI	79 Outperform	$644.71M	11.19	12.97%	1.57%	5.87%	37.99%
HTBK	78 Outperform	$773.72M	17.81	6.26%	4.16%	8.23%	-0.07%
IBCP	78 Outperform	$693.59M	10.15	14.51%	3.09%	4.29%	10.56%
SMBK	69 Neutral	$648.09M	13.77	9.01%	0.84%	13.41%	41.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EGBN	52 Neutral	$666.65M	-5.54	-10.24%	2.40%	-8.51%	-185.08%

South Plains Financial Corporate Events

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.

South Plains Financial Reports Strong Q3 2025 Results

South Plains Financial reported strong financial results for the third quarter of 2025, with net income rising to $16.3 million, up from $14.6 million in the previous quarter and $11.2 million in the same quarter last year. The company experienced growth in net interest income and a decrease in interest expenses, while also managing to improve the credit quality of its loan portfolio. Despite challenges such as higher than normal loan paydowns, South Plains is optimistic about accelerating growth next year by expanding its lending platform and potentially acquiring banks that align with its conservative culture and strategic goals.

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

South Plains Financial Redeems $50M Subordinated Notes

On September 30, 2025, South Plains Financial, Inc. redeemed the entire $50,000,000 outstanding principal amount of its 4.50% Fixed to Floating Rate Subordinated Notes due 2030. The redemption was carried out according to the terms of the Indenture with UMB Bank, National Association, and was approved by the company’s primary federal regulator on August 22, 2025.

The most recent analyst rating on (SPFI) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on South Plains Financial stock, see the SPFI Stock Forecast page.