LUBBOCK, Texas, March 23, 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”), and BOH Holdings, Inc. (“BOH”), the parent company of Bank of Houston, today jointly announced that, on March 20, 2026, the shareholders of BOH approved the previously announced proposed merger of BOH with and into South Plains, with South Plains continuing as the surviving corporation, followed by the proposed merger of ...

LUBBOCK, Texas, March 09, 2026 (GLOBE NEWSWIRE) -- South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the “Company”), the parent company of City Bank (the “Bank”), today announced the release of the Company’s 2025 Community Impact Report. This report demonstrates South Plains’ ongoing commitment to being a responsible corporate citizen in each of the unique communities in which the Company and Bank operate. Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “Our commi ...

Financial Performance - Net income for the year ended December 31, 2025, was $58.5 million, or $3.44 per diluted share, an increase from $49.7 million, or $2.92 per diluted share, in 2024[267] - Net interest income increased by $19.9 million to $166.999 million in 2025, compared to $147.098 million in 2024[265] - Return on average assets improved to 1.33% in 2025 from 1.17% in 2024, while return on average equity rose to 12.70% from 11.75%[268] - Noninterest income for the year ended December 31, 2025 was $44.9 million, a decrease of $3.2 million, or 6.6%, compared to $48.1 million for 2024[284] - Total noninterest expense for the year ended December 31, 2025 was $132.6 million, an increase of $5.0 million, or 4.0%, compared to $127.6 million for 2024[289] Assets and Liabilities - Total assets as of December 31, 2025, were $4.480 billion, up from $4.232 billion in 2024[265] - Cash and cash equivalents increased to $552.439 million in 2025 from $359.082 million in 2024[265] - Total average loans outstanding during the period increased to $3.09 billion in 2025 from $3.05 billion in 2024[319] - Total deposits increased by $253.2 million, or 7.0%, to $3.87 billion at December 31, 2025, compared to $3.62 billion at December 31, 2024[294] - The company had a remaining borrowing capacity from the FHLB of $1.27 billion as of December 31, 2025, up from $1.11 billion in 2024[342] Loans and Credit Quality - The allowance for credit losses on loans to nonperforming loans ratio improved to 460.29% in 2025 from 179.98% in 2024[265] - The provision for credit losses for 2025 was $5.2 million, compared to $4.3 million in 2024, largely due to net charge-offs of $3.0 million and loan growth[282] - Nonaccrual loans decreased to $7.07 million at December 31, 2025, from $22.1 million at December 31, 2024[319] - Nonperforming loans were $9.8 million at December 31, 2025, compared to $24.0 million at December 31, 2024, reflecting a significant decrease[328] - The allowance for credit losses (ACL) for loans was $45.1 million at December 31, 2025, an increase of $1.9 million, or 4.4%, from $43.2 million at December 31, 2024[317] Capital and Equity - Total stockholders' equity increased to $493.8 million as of December 31, 2025, compared to $438.9 million in 2024, driven by $58.5 million in net income[356] - The consolidated total capital to risk-weighted assets ratio is 17.26%, with a total capital amount of $622,485 thousand[360] - The consolidated Tier 1 capital to risk-weighted assets ratio is 15.70%, with a Tier 1 capital amount of $566,107 thousand as of December 31, 2025[360] - The company met all capital adequacy requirements and was classified as "well capitalized" under regulatory standards as of December 31, 2025[358] - The ratio of total stockholders' equity to total assets improved to 11.02% in 2025 from 10.37% in 2024[379] Dividends and Stock Repurchase - The company declared dividends of $0.62 per share for 2025, compared to $0.56 per share in 2024[265] - The company has a stock repurchase program allowing for the purchase of up to $15.0 million of its outstanding shares[253] - In 2025, the company repurchased 259,046 shares of common stock for a total of $8.5 million, compared to 53,799 shares for $1.3 million in 2024[363] Interest Income and Margin - Interest income increased by $11.1 million, or 4.6%, primarily due to an $8.9 million increase in loan interest income, driven by a $33.4 million growth in average loans outstanding and a 22 basis points increase in loan yield[278] - The net interest margin for 2025 was 3.98%, up from 3.65% in 2024, while the net interest spread increased to 3.04% from 2.58%[280] - The total interest-earning assets for 2025 were $4,214.8 million, with a total interest income of $252.9 million, resulting in an average yield of 6.00%[273] Regulatory and Accounting Policies - The company adheres to GAAP in its accounting and reporting policies, which involve critical estimates and judgments[380] - The company has opted not to participate in the Community Bank Leverage Ratio framework, continuing to follow Basel III capital requirements[362] - Management's estimates for the ACL are subject to significant revision based on changes in the economic environment[383] Miscellaneous - The merger with BOH Holdings, Inc. is expected to close in Q2 2026, with an aggregate value of approximately $105.9 million based on a closing price of $37.79[263] - The company has established concentration limits in the loan portfolio for commercial real estate loans and unsecured lending, ensuring all loan types are within established limits[298] - The fair value adjustment for securities available for sale increased by $21.7 million during 2025, following a decrease of $9.7 million in 2024, attributed to lower long-term interest rates[334]

Core Viewpoint - The focus is on identifying strong value stocks using the Zacks Rank system and Style Scores, with South Plains Financial (SPFI) highlighted as a notable investment opportunity due to its strong value metrics and earnings outlook [1][2]. Group 1: Company Overview - South Plains Financial (SPFI) currently holds a Zacks Rank of 2 (Buy) and has received an "A" grade in the Value category, indicating it is among the strongest value stocks available [2]. - SPFI has a price-to-book (P/B) ratio of 1.4, which is attractive compared to the industry average P/B of 1.93. Over the past year, SPFI's P/B has fluctuated between a high of 1.50 and a low of 1.12, with a median of 1.31 [3]. - The company also has a price-to-sales (P/S) ratio of 2.36, which is slightly below the industry average P/S of 2.38, suggesting it is competitively valued in terms of sales [4]. Group 2: Investment Metrics - The P/B and P/S ratios are key metrics that indicate SPFI is likely undervalued at present, especially when considering the strength of its earnings outlook [5].

Core Insights - South Plains Financial, Inc. has been ranked 7th on Forbes' annual list of America's Best Banks, making City Bank the top bank in Texas [1][2] Group 1: Company Overview - South Plains Financial, Inc. is the parent company of City Bank, which is headquartered in Lubbock, Texas [3] - City Bank is one of the largest independent banks in West Texas, with operations in various Texas markets and Ruidoso, New Mexico [3] - The company offers a wide range of financial services, including commercial and retail banking, investment, trust, and mortgage services [3] Group 2: Recognition and Ranking - The ranking by Forbes included the 200 largest publicly-traded banks and thrifts by assets, with the top 100 banks evaluated based on 11 equally-weighted metrics [2] - Metrics used for the ranking included credit quality, profitability, and stock performance over the last twelve months as of September 30, 2025 [2] Group 3: Leadership Commentary - Curtis Griffith, Chairman and CEO of South Plains, expressed pride in the ranking, attributing it to the dedication of employees and their impact on customers and communities [2]

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].

Core Viewpoint - South Plains Financial (SPFI) has shown strong performance over the past year, with a 10% increase in share value, indicating effective growth strategies in key Texas markets [1] Group 1: Company Performance - SPFI's shares have gained 10% over the past year, reflecting solid performance [1] - The company is actively working to expand its presence in key Texas markets to build scale [1] Group 2: Strategic Initiatives - South Plains Financial is pursuing aggressive growth strategies to enhance its market position [1]

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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