South Plains Financial (NASDAQ:SPFI) Announces Quarterly Earnings Results

South Plains Financial (NASDAQ:SPFI) released its quarterly earnings results on Thursday. The company reported $1.06 earnings per share for the quarter, topping the consensus estimate of $0.99 by $0.07, Zacks reports. The business had revenue of $65.27 million during the quarter, compared to analysts’ expectations of $65.22 million. South Plains Financial had a return on equity of 12.36% and a net margin of 20.79%.

Here are the key takeaways from South Plains Financial’s conference call:

• Strong third-quarter performance: Net income rose to $20.8 million and diluted EPS increased to $1.06 from $0.96, while return on average assets improved to 1.53% and the efficiency ratio improved to 58.1%.
• Loan growth and pipeline remain healthy: Loans held for investment grew 6.3% annualized to $3.83 billion, and management remains confident in achieving mid-single-digit full-year loan growth despite sizable payoffs.
• Margin and funding trends were stable: Tax-equivalent net interest margin held at 4.0%, deposits increased, non-interest-bearing deposits reached 25.3% of total deposits, and management continues to remove higher-cost, non-core funding.
• Leadership transition is planned: CEO Curtis Griffith will retire at year-end but remain chairman, with President Cory Newsom succeeding him; management characterized the transition as well prepared and supported by an experienced team.
• Credit and expense items require monitoring: Non-performing loans increased to 40 basis points, primarily from acquired Bank of Houston credits, while management expects expenses to rise again in 2027 as it adds personnel and invests in growth.

South Plains Financial Trading Down 1.0%

Shares of South Plains Financial stock traded down $0.43 during midday trading on Friday, reaching $43.50. 16,895 shares of the company’s stock traded hands, compared to its average volume of 113,480. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.96 and a current ratio of 0.97. The stock has a 50 day moving average of $43.71 and a 200-day moving average of $42.94. The company has a market cap of $819.54 million, a PE ratio of 11.85 and a beta of 0.49. South Plains Financial has a 12 month low of $35.34 and a 12 month high of $46.94.

South Plains Financial Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 16th. Shareholders of record on Monday, November 2nd will be given a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend is Monday, November 2nd. This is a positive change from South Plains Financial’s previous quarterly dividend of $0.18. South Plains Financial’s dividend payout ratio is currently 19.62%.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on SPFI shares. Weiss Ratings restated a “buy (b+)” rating on shares of South Plains Financial in a research note on Friday, September 25th. Keefe, Bruyette & Woods reissued an “outperform” rating and set a $50.00 target price (up from $48.00) on shares of South Plains Financial in a research note on Monday, July 20th. Benchmark reiterated a “buy” rating on shares of South Plains Financial in a report on Monday, July 20th. Finally, Raymond James Financial reaffirmed an “outperform” rating and set a $50.00 price objective on shares of South Plains Financial in a report on Monday, July 20th. Six research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $49.60.

Insider Activity at South Plains Financial

In other news, Director Richard D. Campbell sold 27,286 shares of South Plains Financial stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $45.14, for a total value of $1,231,690.04. Following the completion of the sale, the director directly owned 1,384,969 shares in the company, valued at $62,517,500.66. The trade was a 1.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director James D. Stein sold 100,000 shares of the firm’s stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $44.54, for a total transaction of $4,454,000.00. Following the completion of the transaction, the director directly owned 242,872 shares in the company, valued at approximately $10,817,518.88. The trade was a 29.17% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 260,000 shares of company stock worth $11,624,642 over the last 90 days. 24.29% of the stock is currently owned by corporate insiders.

Trending Headlines about South Plains Financial

Here are the key news stories impacting South Plains Financial this week:

• Positive Sentiment: South Plains Financial earned $1.06 per share, exceeding analyst estimates ranging from $0.97 to $0.99 and increasing from $0.96 a year earlier. Revenue was $65.27 million, slightly ahead of the $65.22 million consensus estimate. South Plains Financial Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Management indicated that the Bank of Houston integration is contributing to results and signaled expectations for mid-single-digit loan growth in 2026. The company is also targeting a loan-to-deposit ratio of approximately 85%, suggesting continued attention to liquidity and balance-sheet funding. South Plains Financial Beats Q3 Estimates as Bank of Houston Integration Pays Off
• Positive Sentiment: The board raised the quarterly dividend 5.6%, from $0.18 to $0.19 per share. The dividend will be paid November 16 to shareholders of record November 2, representing an annualized payout of $0.76 and a yield of approximately 1.7%. The increase signals confidence in cash generation and shareholder returns. South Plains Financial Announces Dividend Increase
• Neutral Sentiment: South Plains reported a 20.79% net margin and 12.36% return on equity, supporting the view that profitability remains solid.
• Negative Sentiment: The company is navigating a CEO transition, which could create near-term uncertainty even as operating targets remain intact. Investors will also monitor whether projected loan growth and the Bank of Houston integration translate into sustained earnings gains. South Plains Signals Loan Growth Amid CEO Transition

About South Plains Financial

South Plains Financial, Inc is a bank holding company headquartered in Lubbock, Texas. Through its principal subsidiary, City Bank, the company provides banking and financial services to individuals, businesses, agricultural customers and other organizations.

City Bank offers a range of products and services, including checking and savings accounts, certificates of deposit, consumer loans, commercial and industrial lending, agricultural loans, real estate financing, mortgage lending, wealth management and treasury management services.