LUBBOCK, Texas, Feb. 05, 2026 (GLOBE NEWSWIRE) -- South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the “Company”), the parent company of City Bank (“City Bank” or the “Bank”), announced that it has been named one of the best banks in the country, ranking 7th on Forbes 17th annual list of America’s Best Banks. The designation ranked City Bank as the top bank in Texas. Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “We are truly honored to be included on this pres ...

Core Viewpoint - South Plains Financial (SPFI) shows a promising earnings outlook, with analysts raising their earnings estimates, which may positively impact the stock price [1][2]. Earnings Estimates - The consensus earnings estimate for the current quarter is $0.88 per share, reflecting a 22.2% increase from the previous year [6]. - For the full year, the expected earnings are $3.90 per share, indicating a 13.4% rise compared to the prior year [7]. - Over the last 30 days, the consensus estimate for the current quarter has increased by 10.69%, with two estimates raised and no negative revisions [6]. - The full-year consensus estimate has risen by 12.39%, supported by two upward revisions and no negative changes [8]. Zacks Rank - South Plains Financial has achieved a Zacks Rank 1 (Strong Buy), indicating strong potential for stock performance based on favorable earnings estimate revisions [9]. - The Zacks Rank system has a proven track record, with Zacks 1 stocks averaging a 25% annual return since 2008 [3]. Stock Performance - The stock has gained 5.3% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [10].

Shares of South Plains Financial ( SPFI ) have been a solid performer over the past year, gaining 10%. South Plains has been working aggressively to grow in its key Texas markets as it seeks to build scale, and in December, itOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s D ...

Core Insights - South Plains Financial (SPFI) reported revenue of $53.88 million for the quarter ended December 2025, reflecting a year-over-year increase of 3.9% [1] - The company's earnings per share (EPS) was $0.90, down from $0.96 in the same quarter last year, but exceeded the consensus estimate of $0.84, resulting in an EPS surprise of +7.14% [1] - The reported revenue surpassed the Zacks Consensus Estimate of $53.45 million, indicating a revenue surprise of +0.81% [1] Financial Performance Metrics - Efficiency ratio stood at 61%, better than the two-analyst average estimate of 63% [4] - Average balance of total interest-earning assets was $4.29 billion, exceeding the $4.19 billion average estimate [4] - Nonperforming loans were reported at $9.81 million, slightly above the estimated $9.8 million [4] - Net interest margin (FTE) was 4%, matching the two-analyst average estimate [4] - Net charge-offs to average loans outstanding (annualized) were 0.1%, better than the average estimate of 0.2% [4] - Total noninterest income was $10.93 million, below the average estimate of $11.31 million [4] - Net interest income reached $42.95 million, surpassing the average estimate of $42.15 million [4] Stock Performance - Shares of South Plains Financial have returned +3.6% over the past month, outperforming the Zacks S&P 500 composite's +0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

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Core Viewpoint - South Plains Financial reported strong financial results for the fourth quarter and full year 2025, highlighting earnings growth, net interest margin (NIM) expansion, and strategic initiatives, while also discussing expectations for loan growth in 2026 and the pending acquisition of BOH Holdings and its banking subsidiary, Bank of Houston [4][6][16]. Financial Performance - Fourth-quarter diluted EPS was $0.90, down from $0.96 in the previous quarter, primarily due to a larger provision for credit losses and one-time interest income items [2]. - Full-year 2025 results included a 17.8% increase in diluted EPS, 33 basis points of NIM expansion, and tangible book value per share growth of over 14% to $29.05 [3][6]. - Net interest income for the fourth quarter was $43 million, essentially unchanged from the third quarter [2]. Loan Growth and Yields - Loans held for investment increased by $91 million to $3.14 billion in the fourth quarter, driven by organic growth in multifamily property loans and other commercial loans [7][9]. - Loan yields were 6.79% in the fourth quarter, down from 6.92% in the linked quarter, with expectations for moderation in yields as Federal Reserve rate cuts take effect [8][12]. Acquisition of BOH Holdings - The pending acquisition of BOH Holdings/Bank of Houston is expected to close in early Q2 2026, projected to be about 11% accretive to earnings in 2027 [5][16]. - The combined company is expected to have over $1 billion in loans in the Houston region, enhancing scale and customer relationships [15][17]. Deposit Dynamics - Deposits ended the quarter at $3.87 billion, steady from the linked quarter, with a 7% increase from year-end 2024 [13]. - The cost of deposits decreased by 9 basis points to 2.01%, attributed to deposit repricing following Federal Reserve rate reductions [14]. Credit Quality and Expenses - The allowance for credit losses was stable at 1.44% of total loans held for investment, with a provision for credit losses of $1.8 million in the fourth quarter [18]. - Non-interest income was $10.9 million in the fourth quarter, with a slight decline due to lower mortgage banking revenue [20]. - Non-interest expense remained unchanged at $33 million, with expectations for modest increases in the first quarter due to hiring and project work [21]. Capital and Returns - Tangible common equity to tangible assets increased to 10.61% at quarter-end, and the company authorized a $0.17 per share quarterly dividend, marking the 27th consecutive dividend [22].

Financial Data and Key Metrics Changes - The company reported a 17.8% increase in diluted earnings per share for the full year of 2025, with diluted EPS at $0.90 for the fourth quarter compared to $0.96 in the linked quarter [5][21] - Net interest income was $43 million for the fourth quarter, consistent with the third quarter, while the net interest margin (NIM) was 4% for the fourth quarter, down from 4.05% in the linked quarter [21][22] - Deposits remained steady at $3.87 billion at the end of the fourth quarter, with a full-year increase of $253 million or 7% from year-end 2024 [22][23] - Tangible book value per share increased to $29.05 as of December 31, 2025, compared to $28.14 as of September 30, 2025 [25] Business Line Data and Key Metrics Changes - Loans held for investment increased by $91 million to $3.14 billion in the fourth quarter, primarily due to organic growth in multifamily property loans, direct energy loans, and other commercial loans [11] - The indirect auto loan portfolio totaled $241 million at the end of the fourth quarter, relatively unchanged from the linked quarter, with a focus on maintaining credit quality [16][19] - Non-interest income was $10.9 million in the fourth quarter, flat compared to $11.2 million in the linked quarter, with mortgage banking revenues declining due to seasonal factors [20] Market Data and Key Metrics Changes - The loan portfolio in major metropolitan markets of Dallas, Houston, and El Paso increased by $15 million or 5.8% annualized to $1.03 billion [14] - The Houston market is highlighted as a key growth area, with the Bank of Houston acquisition expected to enhance the company's presence in this fast-growing region [6][15] Company Strategy and Development Direction - The company is focused on expanding its lending team across high-growth Texas markets and pursuing accretive M&A opportunities, including the acquisition of Bank of Houston [5][6] - The merger with Bank of Houston is projected to be approximately 11% accretive to earnings in 2027, with a tangible book value earnback of less than three years [8] - The company aims to enhance its technology and systems to support efficient growth and is open to additional acquisitions that align with its strategic goals [98][99] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth accelerating to a mid to high single-digit growth rate in 2026, driven by new hires and the Bank of Houston acquisition [9][13] - The company remains well-capitalized and is focused on returning income to shareholders through dividends and share buybacks [10][25] - Management acknowledged potential headwinds in the first quarter of 2026 from expected payoffs in the multifamily property portfolio [14] Other Important Information - The company recorded a $1.8 million provision for credit losses in the fourth quarter, up from $500,000 in the linked quarter, primarily due to strong loan growth [24] - The cost of deposits decreased by 9 basis points to 2.01% compared to the linked quarter, with expectations for a modest decline in the cost of funds in the first quarter [23] Q&A Session Summary Question: NIM outlook and loan growth - Management indicated that while they aim to keep NIM stable, there may be some compression due to competitive pressures and loan growth dynamics [28][29][30] Question: Deposit growth expectations - Management believes they can reduce the deposit costs of Bank of Houston's deposits over time, which may help offset NIM pressures [31] Question: M&A strategy - The company is not pursuing aggressive acquisitions but is open to opportunities that align with their strategic goals, including potential deals beyond Houston [32][33] Question: Payoffs and loan growth - The fourth quarter saw fewer payoffs than previous quarters, aiding net growth, but management anticipates some payoffs in the first quarter of 2026 [40][41] Question: Indirect auto loan portfolio quality - Management noted that the portfolio remains in good condition, with a focus on maintaining high credit quality despite some shifts in borrower credit scores [44][48] Question: Mortgage banking and fee income - The company is actively hiring mortgage producers to prepare for a potential upturn in volumes and is focused on maintaining fee income growth [51][52]

South Plains Financial (NasdaqGS:SPFI) Q4 2025 Earnings call January 26, 2026 05:00 PM ET Company ParticipantsBrent Bates - Chief Credit OfficerBrett Rabatin - Managing Director and Head of Equity ResearchCory Newsom - PresidentCurtis Griffith - Chairman and CEOStephen Scouten - Managing DirectorSteve Crockett - CFO and TreasurerWoody Lay - VPConference Call ParticipantsJoe Yanchunas - Equity Research AnalystOperatorGood afternoon, ladies and gentlemen, and welcome to the South Plains Financial Fourth Quart ...

South Plains Financial (NasdaqGS:SPFI) Q4 2025 Earnings call January 26, 2026 05:00 PM ET Speaker1Good afternoon, ladies and gentlemen, and welcome to the South Plains Financial Fourth Quarter 2025 earnings conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions with instructions to follow at that time, and as a reminder, this conference call is being recorded. I would now like to turn the call over to Ste ...