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]

Financial Data and Key Metrics Changes - The company reported a 17.8% increase in diluted earnings per share for the full year of 2025 [5] - Net interest margin (NIM) expanded by 33 basis points to 4% in the fourth quarter [5] - Tangible book value per share grew by more than 14% to $29.05 [5][28] - Diluted earnings per share decreased to $0.90 from $0.96 in the linked quarter, primarily due to a larger provision for credit losses [24] Business Line Data and Key Metrics Changes - Loans held for investment increased by $91 million to $3.14 billion in the fourth quarter, driven by organic growth in multifamily property loans, direct energy loans, and other commercial loans [12] - The indirect auto loan portfolio remained relatively unchanged at $241 million, with a focus on maintaining credit quality [18] - Non-interest income was $10.9 million in the fourth quarter, flat compared to $11.2 million in the linked quarter [21] Market Data and Key Metrics Changes - Loan growth in major metropolitan markets of Dallas, Houston, and El Paso increased by $15 million or 5.8% annualized to $1.03 billion [16] - The Houston market is projected to be a significant growth area, with the Bank of Houston acquisition expected to enhance the company's presence [7][17] Company Strategy and Development Direction - The company is focused on expanding its lending team in high-growth Texas markets and pursuing accretive M&A opportunities [6] - The acquisition of Bank of Houston is expected to complement existing operations and enhance customer relationships [7][9] - The company aims to achieve mid to high single-digit loan growth in 2026, driven by new hires and the BOH acquisition [10][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities ahead, particularly in the Houston market [10] - The company is well-capitalized and plans to continue returning income to shareholders through dividends and share buybacks [11] - Management acknowledged potential headwinds in the first quarter of 2026 from expected payoffs in the multifamily property portfolio [16] 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 [26] - Non-interest expense remained flat at $33 million in the fourth quarter, with expectations for modest increases in the first quarter [27][88] Q&A Session Summary Question: NIM outlook and loan growth impact - Management indicated that while they aim to keep NIM stable, there may be some compression due to competitive pressures and loan growth dynamics [31][32][33] Question: Deposit growth expectations - Management believes they can reduce deposit costs over time with the integration of BOH, which may help offset NIM pressures [34] Question: Payoffs and loan growth expectations - The fourth quarter saw lighter payoffs, aiding net growth, but management anticipates some payoffs in the first quarter of 2026 [44][45] Question: Indirect auto loan portfolio quality - Management noted that the portfolio remains in good condition, with a focus on maintaining high credit quality [50][52] Question: Mortgage banking and fee income strategies - The company is actively hiring mortgage producers and aims to maintain its infrastructure while preparing for a potential upturn in volumes [57] Question: Revenue synergies from BOH acquisition - Management sees opportunities for cross-selling and leveraging existing products to enhance revenue from the Bank of Houston [65][66] Question: Expense management and hiring plans - Management expects modest increases in expenses due to new hires and ongoing technology projects, while maintaining a focus on cost control [87][89]

Group 1 - The share price of a certain company is up 30% year to date, indicating potential for further growth due to optionality and leverage [1] - City Bank has shown positive trading performance, particularly in relation to credit card activities, suggesting a resolution of previous issues [1] - SMH is recommended to sell on rallies as it is currently 25% above its 200-day moving average, indicating potential overvaluation [1] Group 2 - A company reached an all-time high in trading today, reflecting strong market performance [2]

Core Viewpoint - South Plains Financial, Inc. will release its fourth quarter 2025 financial results on January 26, 2026, after market close, followed by a conference call to discuss these results [1]. Group 1: Financial Results Announcement - The fourth quarter 2025 financial results will be announced after market close on January 26, 2026 [1]. - A conference call and webcast will be held at 5:00 p.m. ET on the same day to discuss the financial results [1]. Group 2: Conference Call Participation - Investors and analysts can participate in the call by dialing 1-877-407-9716 or 1-201-493-6779 for international callers, approximately 10 minutes before the call starts [2]. - A live audio webcast will be available on the Company's website [2]. Group 3: Conference Call Replay - A replay of the conference call will be accessible within two hours after the call concludes, available through the Company's website and by dialing 1-844-512-2921 or 1-412-317-6671 for international callers [3]. - The replay will be available until February 9, 2026, with a pin code of 13757840 for telephone access [3]. Group 4: Company Overview - South Plains Financial, Inc. is the bank holding company for City Bank, headquartered in Lubbock, Texas, and is one of the largest independent banks in West Texas [4]. - The Company operates in various Texas markets, including Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, as well as in Ruidoso, New Mexico [4]. - South Plains provides a range of commercial and consumer financial services, including commercial and retail banking, investment, trust, and mortgage services [4].

Credit Market Error - In 2020, a situation occurred in credit markets where Citibank accidentally sent $900 million to lenders as a full prepayment for Revlon's loan instead of an interest payment [2][3] - The credit agreement lacked specific terms addressing such erroneous payments, leading to litigation [4] Erroneous Payment Deal Terms - Erroneous payment deal terms have emerged in credit deals to address the scenario of accidental overpayments [4] - Noetica's data indicates that 90% of deals now include this term as of the last quarter [4] - Deals lacking this term are considered significantly off-market, potentially involving hundreds of millions of dollars [5] Consumerism Analogy - The situation is analogized to a consumer experience at McDonald's, where receiving extra Chicken McNuggets is viewed as a benefit, highlighting the unexpected nature of the error [1][2][6]

Core Viewpoint - South Plains Financial has announced its acquisition of BOH Holdings and its subsidiary, Bank of Houston, for $105.1 million in stock, enhancing its presence in Houston, Texas [1][2]. Group 1: Acquisition Details - The acquisition involves BOH Holdings, which has $772 million in assets, and will result in South Plains having $643 million in deposits across two branches in Houston, making it the 11th largest Texas-headquartered bank in the city [1][2]. - The merger is expected to close in the first quarter of 2026, with BOH's CEO Jim Stein joining South Plains and continuing to lead the Houston team [5]. Group 2: Financial Performance - BOH reported loans totaling $628.8 million as of September 30, 2025, reflecting a 4% increase from the previous year, while net income for the first nine months of 2025 was $8.2 million, a 42% increase year-over-year [4]. - South Plains' loan growth was flat for the year ending September 30, 2025 [4]. Group 3: Market Context and Future Outlook - The Houston metropolitan area, with a population of 7.8 million, is projected to grow by 7.8% from 2025 to 2031, indicating a favorable environment for banking operations [2]. - Analysts view the acquisition as a low-risk transaction that enhances South Plains' loan growth potential, with expected earnings accretion of approximately 11% in 2027 and projected cost savings of 25% of BOH's operating expenses [6][7]. - The banking sector has seen significant M&A activity in 2025, with 169 transactions totaling $46.1 billion reported, suggesting a robust market for future acquisitions [11].

In 2018, I pointed out when Bitcoin was about 10,000, it was going to drop a zero. I was 70% right, 30% wrong cuz it went down to 3,000. I'm saying the same thing now.I think it can go back to 10,000. The Bloomberg intelligence just predicted this about Bitcoin. >> And it's classic peak bull market stuff.Remember scene in 1999. that Bitcoin's price is headed to 10K while City Bank $1.7% trillion heavily respected City Bank is arguing the opposite. >> Going forward, the liquidity squeeze for the Bitcoin weak ...

Core Viewpoint - Morning Star identifies three stocks as potential sells for November: Delta Airlines, Hims and Hers, and Walmart [1][2]. Group 1: Delta Airlines - Delta Airlines generates the highest revenue yield in the North American market and holds a significant share of industry profits [3]. - Despite a positive near-term outlook for US airlines, a return to normalized operating conditions is expected, leading to increased price competition and reduced profitability [4]. - Delta's stock is considered significantly overvalued with a fair value estimate of $32 [4]. Group 2: Hims and Hers - Hims and Hers has experienced strong performance, with a 49% year-over-year revenue growth in the third quarter [5]. - The company is facing a decline in sequential subscriber growth, along with challenges from low barriers to entry and fierce competition [5]. - The stock is deemed very overvalued, with a fair value estimate of $25 [6]. Group 3: Walmart - Walmart is recognized as the world's largest retailer, benefiting from a vast store network and a growing digital presence [7]. - The competitive landscape is expected to constrain gross margins, leading to a recent reduction in the fair value estimate for Walmart [7]. - Walmart's shares are viewed as significantly overvalued relative to a fair value estimate of $60 [7].

Market Trends - The IPO market is making a comeback in 2025 [1] - Public markets are shrinking, while private markets are growing [3] - 25 years ago, there were over 8,000 publicly traded companies, now there are half that amount [3] - A decade ago, there were about 50 unicorns, today there are close to 1,200 [3] Private Market Dynamics - Private companies are offering liquidity to employees through tenders to attract and retain talent [4][5] - NASDAQ Private Market's tender volume was approximately $35 billion 3 years ago, $65 billion last year, and is projected to be $30 billion in 2025 [6] - The private markets could exceed public markets by at least one metric in the next 3 to 5 years [2] - Private markets are being opened up to retail investors, but it's crucial to understand the differences from public markets [10][11][12] - Private companies need to approve every single share transfer, unlike public markets [13] Valuation of Private Companies - Open AI has a valuation of $500 billion, SpaceX has a valuation of $400 billion, and Anthropic has a valuation of $180 billion [7][8]

Market Trends & Price Movements - Bitcoin experienced a retreat alongside a pullback in tech stocks [1][2] - Ether fell by more than 35% to $4,190 [3] - Solana's SOL token also decreased, dropping below $180 [3] Company News & IPOs - Figure Technology, a blockchain lending company, has filed to go public on the NASDAQ [1][4] - Figure Technology reported $191 million in net revenue for the first 6 months of 2025, a 22% increase compared to the same period last year [4] - Figure Technology reported a net income of $29 million for the first 6 months of this year, compared to a net loss of $13 million in the same period last year [4] - Tether hired Bo Hines to lead its US digital asset strategy [5][6] Regulatory & Legislative Developments - Wyoming will launch its own US dollar-backed stablecoin called Frontier Stable Token [7] - Congressman Brian Style discussed the Clarity Act, emphasizing its importance for fostering innovation and protecting consumers in the crypto space [10][12] - The Clarity Act aims to establish a clear regulatory framework for crypto, addressing the current lack of regulatory clarity in the US [11][13] - The Genius Act, a stablecoin regulation bill, has been signed into law [8][16] - The industry anticipates significant investment in the stablecoin space in the US following the enactment of the Genius Act [29]