South Plains Financial (SPFI) AI Stock Analysis

• Market Cap: $614.01M
• Dividend Yield: 1.64%
• Average Volume (3M): 41.44K
• Price to Earnings (P/E): 10.8
• 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): 0.96
• Shares Outstanding: 16,247,839
• 10 Day Avg. Volume: 41,403
• 30 Day Avg. Volume: 41,443
• 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: 1.08
• Enterprise Value/Revenue: 2.26
• Enterprise Value/Gross Profit: 3.29
• Enterprise Value/Ebitda: 8.10
• 1Y Price Target: $43.00
• Price Target Upside: 13.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.25
• Revenue Forecast (FY): $212.25M

• Rating: 72 Outperform
• Price Target: $40.00 ▲(5.85% Upside)

South Plains Financial's overall score reflects a strong financial foundation and positive earnings call insights. However, technical indicators suggest bearish momentum, and valuation metrics indicate moderate attractiveness. The company's strategic initiatives and solid balance sheet support its potential for future growth.

Positive Factors

Strong Financial Position

South Plains Financial's strong earnings growth and improved credit quality indicate a robust financial foundation, supporting long-term stability and growth potential.

Capital Ratios and Dividend Payout

High capital ratios and consistent dividend payouts reflect financial strength and commitment to returning value to shareholders, enhancing investor confidence.

Lending Team Expansion

Expanding the lending team in key markets positions South Plains Financial for future loan growth and market share expansion, supporting long-term business development.

Negative Factors

Decrease in Loans Held for Investment

A decrease in loans held for investment may limit interest income growth, impacting revenue and profitability in the long term if not addressed.

Decrease in Noninterest Income

Declining noninterest income, particularly from mortgage banking, could reduce revenue diversification and affect overall financial performance.

Higher-Than-Normal Loan Paydowns

Excessive loan paydowns can hinder loan portfolio growth, affecting interest income and potentially slowing down overall business expansion.

South Plains Financial Business Overview & Revenue Model

Company Description

South Plains Financial, Inc. (SPFI) is a financial holding company based in Texas, primarily involved in the banking sector through its subsidiary, South Plains Bank. The company operates in the financial services industry, offering a range of products including commercial and consumer loans, mortgage services, treasury management, and deposit accounts. SPFI serves both individual and business clients across various regions, focusing on providing tailored financial solutions to meet the diverse needs of its customers.

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: 37.79
• 50DMA: Positive
• 100DMA: Negative
• 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 37.79 is above the 20-day moving average (MA) of 37.28, above the 50-day MA of 37.70, and above the 200-day MA of 36.20, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 52.49 is Neutral, neither overbought nor oversold. The STOCH value of 73.43 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	76 Outperform	$660.02M	15.32	6.26%	4.78%	8.23%	-0.07%
IBCP	75 Outperform	$675.59M	10.03	14.51%	3.19%	4.29%	10.56%
SMBC	73 Outperform	$635.55M	10.31	11.54%	1.71%	9.34%	25.21%
SMBK	73 Outperform	$598.94M	12.83	9.01%	0.88%	13.41%	41.78%
SPFI	72 Outperform	$614.01M	10.78	12.97%	1.64%	5.87%	37.99%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EGBN	46 Neutral	$576.14M	―	-10.24%	2.66%	-8.51%	-185.08%

South Plains Financial Corporate Events

South Plains Financial’s Earnings Call Highlights Growth and Challenges

South Plains Financial’s recent earnings call reflected a generally positive sentiment, underscored by strong financial performance and strategic initiatives. The company reported significant improvements in earnings growth, capital ratios, and asset quality. Despite facing challenges such as a decrease in loans held for investment and noninterest income, along with higher-than-normal loan paydowns, South Plains Financial’s strategic initiatives and successful expansion of their lending team position them well for future growth.

South Plains Financial Reports Strong Q3 2025 Results

South Plains Financial, Inc., a bank holding company for City Bank, operates primarily in Texas and New Mexico, offering a wide range of commercial and consumer financial services. In its third quarter of 2025, South Plains Financial reported a net income of $16.3 million, marking an increase from both the previous quarter and the same quarter last year. The company’s diluted earnings per share rose to $0.96, reflecting strong earnings growth. The average cost of deposits decreased, and the net interest margin remained stable, indicating efficient financial management. Key financial metrics showed improvement, with a return on average assets of 1.47% and a tangible book value per share of $28.14. The company also reported a healthy capital position with a total risk-based capital ratio of 17.34%. Looking ahead, South Plains Financial aims to accelerate asset growth through organic expansion and potential mergers and acquisitions, supported by a robust lending platform and strategic investments in technology.

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.

South Plains Financial Adopts New Bylaws

On August 20, 2025, South Plains Financial, Inc. adopted new bylaws to align with recent changes in the Texas Business Organizations Code. These amendments include a 3% ownership threshold for shareholders to initiate derivative proceedings, electing governance under Section 21.419 of the TBOC, designating specific courts for internal entity claims, and waiving jury trials for such claims.

The most recent analyst rating on (SPFI) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on South Plains Financial stock, see the SPFI Stock Forecast page.