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South Plains Financial
(NASDAQ:SPFI)
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Rating:80Outperform
Price Target:
$52.00
â–²(16.51% Upside)
Action:Reiterated
Date:08/07/26
SPFI scores well primarily on financial performance, led by a stronger, lower-leverage balance sheet and healthy profitability/cash generation. Technicals add support with the price above major moving averages and positive MACD, while valuation is reasonable with a modest dividend yield. The latest earnings call was broadly positive (acquisition-driven growth and shareholder returns) but tempered by funding-cost pressure, slight margin compression, and near-term credit/expense watch items.
Positive Factors
Successful Bank of Houston integration
The completed integration expands South Plains Financial’s operating scale and Texas market presence while adding earning assets and deposits. Execution that is largely behind management should allow the acquired franchise to contribute more consistently without prolonged disruption.
Negative Factors
Funding costs pressure net interest margin
A less favorable deposit mix and higher funding costs can compress the spread between loan yields and funding expenses. Management expects gradual improvement, but optimization of acquired balances may take multiple quarters and limit margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Successful Bank of Houston integration
The completed integration expands South Plains Financial’s operating scale and Texas market presence while adding earning assets and deposits. Execution that is largely behind management should allow the acquired franchise to contribute more consistently without prolonged disruption.
Read all positive factors
South Plains Financial (SPFI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$851.53M
Dividend Yield1.54%
Average Volume (3M)186.17K
Price to Earnings (P/E)11.6
Beta (1Y)0.72
Revenue Growth6.55%
EPS Growth14.68%
CountryUS
Employees574
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.82
Shares Outstanding18,839,106
10 Day Avg. Volume173,526
30 Day Avg. Volume186,173
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$49.67Price Target Upside11.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)3.87
Revenue Forecast (FY)$249.05M
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:Jul 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call portrayed a company in growth mode following the Bank of Houston acquisition with tangible benefits to assets, deposits, earnings (EPS up ~12.9%), and non-interest income (up ~24.8%). Integration is largely complete and management highlighted strong capital, continued dividend increases, share repurchases, and confidence in mid-single-digit organic loan growth. Near-term challenges include a slight compression in NIM (-4 bps), higher cost of deposits (+11 bps), elevated non-interest expenses from acquisition activity, payoffs (~$37.5M) and an uptick in classified/non-performing loans primarily from acquired portfolios — all of which management is actively addressing. On balance, the positives around transactional growth, successful integration, improved profitability, and shareholder returns outweigh the transitory operational and credit headwinds.Positive Updates
Significant Balance Sheet Growth (Assets & Loans)
Total assets grew to approximately $5.4 billion at quarter-end. Loans held for investment increased $677.3 million to $3.77 billion (≈+21.9% QoQ), driven primarily by the Bank of Houston acquisition ($632 million) plus $35 million of organic loan growth.
Negative Updates
Downward Pressure on Margin (NIM & Loan Yield)
Tax-equivalent net interest margin declined to 4.00% from 4.04% in the linked quarter (-4 bps). Yield on loans slipped to 6.81% from 6.83% (-2 bps). Management expects margin management work (e.g., reducing BOH brokered CDs) to be incremental and unfolding over future quarters.
Read all updates
Q2-2026 Updates
Positive
Negative
Significant Balance Sheet Growth (Assets & Loans)
Total assets grew to approximately $5.4 billion at quarter-end. Loans held for investment increased $677.3 million to $3.77 billion (≈+21.9% QoQ), driven primarily by the Bank of Houston acquisition ($632 million) plus $35 million of organic loan growth.
Read all positive updates
Company Guidance
The company guided to mid‑single‑digit full‑year loan growth while noting paydowns will be a headwind, expects moderate deposit growth in H2 and to maintain net interest margin around current levels (~4.00% tax‑equivalent in Q2 vs 4.04% in Q1) as it works to reduce higher‑cost funding (cost of deposits up 11 bps) and optimize acquired Bank of Houston balances (Q2 loans held for investment $3.77B, +$677.3M linked‑quarter of which $632M was BOH and $35M organic; loan yield 6.81% vs 6.83% in Q1; loans in major metros $1.69B, +$682M); management expects improvement in cost of funds in Q3, continued focus on organic loan production and lender hires, measured M&A, and deposit remixing (deposits $4.64B, +$613M; BOH deposits $596M; organic +$17M; non‑interest bearing 24.8%); financial targets and capital support these plans (NII $50.3M, diluted EPS $0.96 vs $0.85 linked, non‑interest income $14.1M = 22% of revenues, mortgage and card revenues up $929k and $894k, allowance/loans 1.41%, provision $350k, non‑interest expense $39.9M including $1.1M acquisition costs, tangible common equity/tangible assets 10.47%, tangible book $29.57, dividend raised 6% to $0.18 and buybacks remain in place).South Plains Financial Financial Statement Overview
Summary
Income Statement
77
Positive
Balance Sheet
84
Very Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 303.11M | 296.89M | 283.10M | 248.51M | 231.94M | 227.51M |
| Gross Profit | 218.32M | 206.69M | 185.00M | 171.62M | 211.86M | 216.16M |
| EBITDA | 88.26M | 79.89M | 69.80M | 85.83M | 80.12M | 79.56M |
| Net Income | 65.11M | 58.47M | 49.72M | 62.74M | 58.24M | 58.61M |
Balance Sheet | ||||||
| Total Assets | 5.39B | 4.48B | 4.23B | 4.20B | 3.94B | 3.90B |
| Cash, Cash Equivalents and Short-Term Investments | 1.34B | 1.12B | 627.32M | 514.02M | 936.59M | 1.21B |
| Total Debt | 60.49M | 60.49M | 110.35M | 110.17M | 122.35M | 122.17M |
| Total Liabilities | 4.76B | 3.99B | 3.79B | 3.80B | 3.59B | 3.49B |
| Stockholders Equity | 629.76M | 493.84M | 438.95M | 407.11M | 357.01M | 407.43M |
Cash Flow | ||||||
| Free Cash Flow | 75.50M | 71.83M | 56.03M | 53.86M | 119.12M | 93.35M |
| Operating Cash Flow | 80.69M | 77.49M | 59.38M | 58.54M | 123.59M | 96.27M |
| Investing Cash Flow | 22.02M | -68.22M | -13.93M | -143.38M | -408.86M | -159.84M |
| Financing Cash Flow | 214.54M | 184.09M | -16.53M | 180.11M | 33.33M | 250.08M |
South Plains Financial Technical Analysis
Neutral
44.63
Price Trends
43.43
Positive
42.41
Positive
41.06
Positive
Market Momentum
0.46
Positive
47.63
Neutral
44.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPFI, the sentiment is Neutral. The current price of 44.63 is below the 20-day moving average (MA) of 44.95, above the 50-day MA of 43.43, and above the 200-day MA of 41.06, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 47.63 is Neutral, neither overbought nor oversold. The STOCH value of 44.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SPFI.
South Plains Financial Risk Analysis
South Plains Financial disclosed 66 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 | $851.53M | 11.57 | 12.36% | 1.52% | 6.55% | 14.68% | |
80 Outperform | $835.10M | 11.47 | 12.54% | 1.29% | 3.70% | 24.24% | |
77 Outperform | $887.58M | 14.81 | 10.30% | 0.84% | 11.51% | 37.08% | |
75 Outperform | $845.35M | 10.62 | 14.12% | 2.87% | 0.24% | 12.12% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
52 Neutral | $867.27M | -21.92 | -3.36% | 0.69% | -11.54% | -24.79% |
* Financial Sector Average
SPFI
South Plains Financial
44.21
5.21
13.36%
EGBN
Eagle Bancorp
27.62
9.41
51.69%
SMBC
Southern Missouri Bancorp
74.01
19.77
36.44%
IBCP
Independent Bank
36.95
6.55
21.54%
SMBK
SmartFinancial
50.65
15.79
45.31%
South Plains Financial Corporate Events
Business Operations and StrategyExecutive/Board ChangesDividendsFinancial DisclosuresM&A Transactions
South Plains Financial Posts Strong Second-Quarter 2026 Results
Positive
Jul 17, 2026
On July 17, 2026, South Plains Financial reported second‑quarter 2026 net income of $19.0 million and diluted EPS of $0.96, both markedly higher than the prior quarter and year‑ago period. The quarter reflected robust net interest inco...
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...
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.