South Plains Financial, Inc. Reports Third Quarter 2026 Financial Results
Quarterly organic loan growth accelerated, while higher credit-loss provisions and securities valuation declines weighed on credit and capital measures.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
South Plains Financial (SPFI) reported third-quarter 2026 net income of $20.8 million, increasing from both the preceding quarter and a year earlier. Diluted earnings per share reached $1.06, versus $0.96 in both comparison quarters. Net interest income rose to $51.5 million, while the tax-equivalent net interest margin held at 4.00% sequentially but fell from 4.05% a year earlier.
Loans held for investment reached $3.83 billion, with organic quarterly growth of $59.7 million, or 6.3% annualized. Deposits totaled $4.66 billion. Credit-loss provisions increased to $830 thousand, and nonperforming assets rose to 0.31% of total assets. Book value per share declined to $33.04 from $33.43 as securities valuation changes reduced accumulated other comprehensive income. Curtis Griffith will retire as CEO at year-end, with President Cory Newsom appointed to succeed him; Griffith will remain chairman.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet income rose to $20.8 million in Q3 2026, versus $19.0 million sequentially and $16.3 million year-over-year.
- Moderate pointNet interest income reached $51.5 million in Q3 2026, versus $50.3 million sequentially and $43.0 million year-over-year.
- Moderate pointReturn on average assets increased to 1.53% in Q3 2026, versus 1.44% sequentially and 1.47% year-over-year.
- Moderate pointLoans held for investment reached $3.83 billion at September 30, versus $3.77 billion sequentially and $3.05 billion year-over-year.
- Moderate pointOrganic loan growth totaled $59.7 million in Q3 2026, or 6.3% annualized, net of a $25 million early payoff.
- Moderate pointDeposits reached $4.66 billion at September 30, versus $4.64 billion sequentially and $3.88 billion year-over-year.
6 minor points
- Minor pointDiluted EPS increased to $1.06 in Q3 2026, versus $0.96 in both comparison quarters.
- Minor pointInterest income increased to $76.4 million in Q3 2026, versus $75.0 million sequentially and $64.5 million year-over-year.
- Minor pointDeposit costs fell to 207 basis points in Q3 2026, from 208 sequentially and 210 year-over-year.
- Minor pointNoninterest-bearing deposits reached $1.18 billion at September 30, versus $1.15 billion sequentially and $1.0 billion year-over-year.
- Minor pointNoninterest expense fell to $38.1 million sequentially from $39.9 million, but exceeded $33.0 million a year earlier.
- Minor pointCash dividends declared and paid increased to $0.18 per share in Q3 2026, from $0.17 sequentially and $0.16 year-over-year.
Negative
- Moderate pointNonperforming assets rose to 0.31% of total assets at September 30, versus 0.19% sequentially and 0.26% year-over-year.
- Moderate pointAccumulated other comprehensive income decreased $25.5 million in Q3 2026, reflecting after-tax securities valuation declines net of hedges. 3.1% of market cap
- Minor pointCredit-loss provisions increased to $830 thousand in Q3 2026, versus $350 thousand sequentially and $500 thousand year-over-year.
- Minor pointAnnualized net charge-offs reached 0.13% in Q3 2026, versus 0.06% sequentially but below 0.16% year-over-year.
- Minor pointLoan-loss allowance coverage fell to 1.38% at September 30, from 1.41% sequentially and 1.45% year-over-year.
7 minor points
- Minor pointTax-equivalent net interest margin was 4.00% in Q3 2026, unchanged sequentially but below 4.05% year-over-year.
- Minor pointAverage loan yield fell to 6.75% in Q3 2026, from 6.81% sequentially and 6.92% year-over-year.
- Minor pointInterest expense increased to $24.9 million in Q3 2026, versus $24.7 million sequentially and $21.5 million year-over-year.
- Minor pointNoninterest income fell to $13.8 million sequentially from $14.1 million, but exceeded $11.2 million a year earlier.
- Minor pointBook value per share declined to $33.04 at September 30 from $33.43 at June 30.
- Minor pointTangible book value per share (non-GAAP) fell to $29.23 sequentially from $29.60, but exceeded $28.14 year-over-year.
- Minor pointTangible common equity to tangible assets (non-GAAP) declined 16 basis points to 10.32% at September 30.
News Explained
South Plains reports that it declared and paid a third-quarter cash dividend of
Key Figures
- Net income
- $20.8 million
- Q3 2026; compared with $19.0 million in Q2 2026 and $16.3 million in Q3 2025
- Diluted EPS
- $1.06
- Q3 2026; compared with $0.96 in Q2 2026 and Q3 2025
- Return on average assets
- 1.53%
- Q3 2026; compared with 1.44% in Q2 2026 and 1.47% in Q3 2025
- Annualized organic loan growth
- 6.3%
- Q3 2026
- Net interest margin
- 4.00%
- Q3 2026, tax-equivalent basis; unchanged from Q2 2026
- Provision for credit losses
- $830 thousand
- Q3 2026; compared with $350 thousand in Q2 2026 and $500 thousand in Q3 2025
- Nonperforming assets to total assets
- 0.31%
- As of September 30, 2026; compared with 0.19% at June 30, 2026
Previous Earnings Reports
-
Q2 reported $19.0 million net income and $0.96 diluted EPS following BOH acquisition.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
net interest margin financial
non-gaap financial
risk-based capital ratio regulatory
common equity tier 1 regulatory
nonperforming assets financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
LUBBOCK, Texas, Oct. 22, 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”), today reported its financial results for the quarter ended September 30, 2026.
Third Quarter 2026 Highlights
- Net income for the third quarter of 2026 was
$20.8 million , compared to$19.0 million for the second quarter of 2026 and$16.3 million for the third quarter of 2025.
- Diluted earnings per share for the third quarter of 2026 was
$1.06 , compared to$0.96 for the second quarter of 2026 and$0.96 for the third quarter of 2025.
- Average cost of deposits for the third quarter of 2026 was 207 basis points, compared to 208 basis points for the second quarter of 2026 and 210 basis points for the third quarter of 2025.
- Net interest margin, on a tax-equivalent basis, was
4.00% for the third quarter of 2026, compared to4.00% for the second quarter of 2026 and4.05% for the third quarter of 2025.
- Return on average assets for the third quarter of 2026 was
1.53% , compared to1.44% for the second quarter of 2026 and1.47% for the third quarter of 2025.
- Tangible book value (non-GAAP) per share was
$29.23 as of September 30, 2026, compared to$29.60 as of June 30, 2026 and$28.14 as of September 30, 2025.
- The consolidated total risk-based capital ratio, common equity tier 1 risk-based capital ratio, and tier 1 leverage ratio at September 30, 2026 were
16.61% ,14.20% , and12.42% , respectively.
Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “As I prepare to retire as Chief Executive Officer at the end of this year, I could not be prouder of what City Bank and South Plains have become. The strong results we delivered in the third quarter, including near-record earnings and solid organic loan growth, reflect the strength of our franchise and reinforce my confidence in the future of the Company. Our leadership transition reflects years of thoughtful planning, and I am confident that Cory and the rest of our experienced management team are well prepared to build on our success. I look forward to continuing my service as Chairman and helping guide the long-term strategy of the Company.”
Cory Newsom, South Plains’ President, added, “I am honored by the Board’s confidence in appointing me as South Plains’ next Chief Executive Officer and excited to build upon the strong foundation that our team has created. Our third quarter results reflect the investments that we have made to expand our lending platform across our high-growth Texas markets, with annualized loan growth accelerating to
Results of Operations, Quarter Ended September 30, 2026
Net Interest Income
Net interest income was
Interest income was
Interest expense was
Noninterest Income and Noninterest Expense
Noninterest income was
Noninterest expense was
Loan Portfolio and Composition
Loans held for investment were
Deposits and Borrowings
Deposits totaled
Asset Quality
The Company recorded a provision for credit losses in the third quarter of 2026 of
The ratio of allowance for credit losses to loans held for investment was
The ratio of nonperforming assets to total assets was
Capital
Book value per share decreased to
Conference Call
South Plains will host a conference call to discuss its third quarter 2026 financial results today, October 22, 2026, at 5:00 p.m., Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-9716 (international callers please dial 1-201-493-6779) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call and conference materials will be available on the Company’s website at https://www.spfi.bank/news-events/events.
A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed on the investor section of the Company’s website as well as by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671). The pin to access the telephone replay is 13762814. The replay will be available until November 5, 2026.
About South Plains Financial, Inc.
South Plains is the bank holding company for City Bank, a Texas state-chartered bank headquartered in Lubbock, Texas. City Bank is one of the largest independent banks in West Texas and has additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. South Plains provides a wide range of commercial and consumer financial services to small and medium-sized businesses and individuals in its market areas. Its principal business activities include commercial and retail banking, along with investment, trust and mortgage services. Please visit https://www.spfi.bank for more information.
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Pre-Tax, Pre-Provision Income. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.
We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.
A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.
Available Information
The Company routinely posts important information for investors on its web site (under www.spfi.bank and, more specifically, under the News & Events tab at www.spfi.bank/news-events/press-releases). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.
The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this document.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect South Plains’ current views with respect to future events and South Plains’ financial performance. Any statements about South Plains’ expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. South Plains cautions that the forward-looking statements in this press release are based largely on South Plains’ expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond South Plains’ control. Factors that could cause such changes include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; slower economic growth rates or potential recession in the United States and our market areas; uncertainty or perceived instability in the banking industry as a whole; increased competition for deposits in our market areas among traditional and nontraditional financial services companies, and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to a continuation of the elevated interest rate environment, further increases in interest rates, or future reductions in interest rates and a resulting decline in net interest income; the persistent inflationary pressures in the United States; the uncertain impacts of current and future monetary policies of the Board of Governors of the Federal Reserve System; a deterioration of credit quality; changes in unemployment rates in the United States and our market areas; adverse changes in customer sentiment, spending, borrowing and savings habits; elevated asset prices; declines in housing and commercial real estate values and prices; a deterioration of the credit rating for U.S. long-term sovereign debt or the impact of uncertain or changing political conditions, including federal government shutdowns and uncertainty regarding United States fiscal debt, deficit and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, military conflicts (including the conflicts in the Middle East, the possible expansion of such conflicts and potential geopolitical and economic consequences), acts of terrorism, geopolitical instability, domestic civil unrest or other external events, including as a result of the impact of the policies of the current U.S. presidential administration or Congress; the impacts of tariffs, sanctions, and other trade policies of the United States and its global trading counterparts and the resulting impact on the Company and its customers; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; our ability to keep pace with changes in, and the risks related to the development, implementation, use and management of, emerging technologies, including digital assets, artificial intelligence and machine learning; potential costs related to the impacts of climate change; current or future litigation, regulatory examinations or other legal and/or regulatory actions; our ability to successfully make and integrate acquisitions, which may include regulatory approvals and conditions, and our ability to recognize the expected benefits and synergies of our completed acquisitions; changes in accounting principles and standards, including those related to loan loss recognition under the current expected credit loss, or CECL, methodology; and changes in applicable laws, regulations, or policies in the United States. Additional information regarding these risks and uncertainties to which South Plains’ business and future financial performance are subject is contained in South Plains’ most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and other documents South Plains files or furnishes with the SEC from time to time, which are available on the SEC’s website, www.sec.gov. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which South Plains is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Any forward-looking statements presented herein are made only as of the date of this press release, and South Plains does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.
| Contact: | Mikella Newsom, Chief Risk Officer and Secretary |
| (866) 771-3347 | |
| investors@city.bank |
Source: South Plains Financial, Inc.
| South Plains Financial, Inc. Consolidated Financial Highlights - (Unaudited) (Dollars in thousands, except share data) | ||||||||||||||||||||
| As of and for the quarter ended | ||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||
| Selected Income Statement Data: | ||||||||||||||||||||
| Interest income | $ | 76,410 | $ | 75,003 | $ | 62,632 | $ | 63,421 | $ | 64,520 | ||||||||||
| Interest expense | 24,949 | 24,654 | 19,780 | 20,471 | 21,501 | |||||||||||||||
| Net interest income | 51,461 | 50,349 | 42,852 | 42,950 | 43,019 | |||||||||||||||
| Provision for credit losses | 830 | 350 | 260 | 1,775 | 500 | |||||||||||||||
| Noninterest income | 13,810 | 14,143 | 11,295 | 10,934 | 11,165 | |||||||||||||||
| Noninterest expense | 38,074 | 39,864 | 35,526 | 33,023 | 33,024 | |||||||||||||||
| Income tax expense | 5,602 | 5,286 | 3,816 | 3,832 | 4,342 | |||||||||||||||
| Net income | 20,765 | 18,992 | 14,545 | 15,254 | 16,318 | |||||||||||||||
| Per Share Data (Common Stock): | ||||||||||||||||||||
| Net earnings, basic | 1.10 | 0.99 | 0.89 | 0.94 | 1.00 | |||||||||||||||
| Net earnings, diluted | 1.06 | 0.96 | 0.85 | 0.90 | 0.96 | |||||||||||||||
| Cash dividends declared and paid | 0.18 | 0.17 | 0.17 | 0.16 | 0.16 | |||||||||||||||
| Book value | 33.04 | 33.43 | 30.90 | 30.31 | 29.41 | |||||||||||||||
| Tangible book value (non-GAAP) | 29.23 | 29.60 | 29.65 | 29.05 | 28.14 | |||||||||||||||
| Weighted average shares outstanding, basic | 18,844,259 | 19,100,893 | 16,318,570 | 16,248,336 | 16,241,695 | |||||||||||||||
| Weighted average shares outstanding, dilutive | 19,601,363 | 19,809,801 | 17,036,334 | 16,996,517 | 16,990,546 | |||||||||||||||
| Shares outstanding at end of period | 18,847,573 | 18,839,105 | 16,342,219 | 16,293,577 | 16,247,839 | |||||||||||||||
| Selected Period End Balance Sheet Data: | ||||||||||||||||||||
| Cash and cash equivalents | 776,735 | 787,757 | 722,000 | 552,439 | 635,046 | |||||||||||||||
| Investment securities | 518,347 | 555,427 | 602,852 | 567,540 | 571,138 | |||||||||||||||
| Total loans held for investment | 3,831,138 | 3,771,434 | 3,103,529 | 3,144,502 | 3,053,503 | |||||||||||||||
| Allowance for credit losses | 52,768 | 53,076 | 44,822 | 45,131 | 44,125 | |||||||||||||||
| Total assets | 5,410,874 | 5,391,206 | 4,646,374 | 4,480,500 | 4,479,437 | |||||||||||||||
| Interest-bearing deposits | 3,481,584 | 3,488,985 | 2,993,469 | 2,850,560 | 2,831,642 | |||||||||||||||
| Noninterest-bearing deposits | 1,179,107 | 1,151,641 | 1,034,117 | 1,023,517 | 1,049,501 | |||||||||||||||
| Total deposits | 4,660,691 | 4,640,626 | 4,027,586 | 3,874,077 | 3,881,143 | |||||||||||||||
| Borrowings | 60,493 | 60,493 | 60,493 | 60,493 | 60,493 | |||||||||||||||
| Total stockholders’ equity | 622,756 | 629,765 | 504,939 | 493,837 | 477,802 | |||||||||||||||
| Summary Performance Ratios: | ||||||||||||||||||||
| Return on average assets (annualized) | 1.53 | % | 1.44 | % | 1.31 | % | 1.36 | % | 1.47 | % | ||||||||||
| Return on average equity (annualized) | 13.15 | % | 12.17 | % | 11.81 | % | 12.46 | % | 13.89 | % | ||||||||||
| Net interest margin(1) | 4.00 | % | 4.00 | % | 4.04 | % | 4.00 | % | 4.05 | % | ||||||||||
| Yield on loans | 6.75 | % | 6.81 | % | 6.83 | % | 6.79 | % | 6.92 | % | ||||||||||
| Cost of interest-bearing deposits | 2.73 | % | 2.74 | % | 2.64 | % | 2.75 | % | 2.87 | % | ||||||||||
| Efficiency ratio | 58.12 | % | 61.59 | % | 65.33 | % | 61.02 | % | 60.69 | % | ||||||||||
| Summary Credit Quality Data: | ||||||||||||||||||||
| Nonperforming loans | 15,313 | 9,506 | 5,093 | 9,805 | 9,709 | |||||||||||||||
| Nonperforming loans to total loans held for investment | 0.40 | % | 0.25 | % | 0.16 | % | 0.31 | % | 0.32 | % | ||||||||||
| Other real estate owned | 1,722 | 790 | 994 | 1,749 | 1,827 | |||||||||||||||
| Nonperforming assets to total assets | 0.31 | % | 0.19 | % | 0.13 | % | 0.26 | % | 0.26 | % | ||||||||||
| Allowance for credit losses to total loans held for investment | 1.38 | % | 1.41 | % | 1.44 | % | 1.44 | % | 1.45 | % | ||||||||||
| Net charge-offs to average loans outstanding (annualized) | 0.13 | % | 0.06 | % | 0.04 | % | 0.10 | % | 0.16 | % | ||||||||||
| As of and for the quarter ended | |||||||||||||||
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||
| Capital Ratios: | |||||||||||||||
| Total stockholders’ equity to total assets | 11.51 | % | 11.68 | % | 10.87 | % | 11.02 | % | 10.67 | % | |||||
| Tangible common equity to tangible assets (non-GAAP) | 10.32 | % | 10.48 | % | 10.48 | % | 10.61 | % | 10.25 | % | |||||
| Common equity tier 1 to risk-weighted assets | 14.20 | % | 14.11 | % | 14.80 | % | 14.45 | % | 14.41 | % | |||||
| Tier 1 capital to average assets | 12.42 | % | 12.21 | % | 12.68 | % | 12.53 | % | 12.37 | % | |||||
| Total capital to risk-weighted assets | 16.61 | % | 16.54 | % | 17.61 | % | 17.26 | % | 17.34 | % | |||||
(1) Net interest margin is calculated as the annual net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets. | |||||||||||||||
| South Plains Financial, Inc. Average Balances and Yields - (Unaudited) (Dollars in thousands) | ||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | |||||||||||||||||||||
| Average | Average | |||||||||||||||||||||
| Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | |||||||||||||||||
| Assets | ||||||||||||||||||||||
| Loans(1) | $ | 3,847,368 | $ | 65,502 | 6.75 | % | $ | 3,093,465 | $ | 53,935 | 6.92 | % | ||||||||||
| Debt securities - taxable | 468,562 | 4,166 | 3.53 | % | 498,302 | 4,638 | 3.69 | % | ||||||||||||||
| Debt securities - nontaxable | 151,800 | 1,075 | 2.81 | % | 155,028 | 1,080 | 2.76 | % | ||||||||||||||
| Other interest-bearing assets | 658,298 | 5,900 | 3.56 | % | 489,621 | 5,101 | 4.13 | % | ||||||||||||||
| Total interest-earning assets | 5,126,028 | 76,643 | 5.93 | % | 4,236,416 | 64,754 | 6.06 | % | ||||||||||||||
| Noninterest-earning assets | 243,848 | 169,345 | ||||||||||||||||||||
| Total assets | $ | 5,369,876 | $ | 4,405,761 | ||||||||||||||||||
| Liabilities & stockholders’ equity | ||||||||||||||||||||||
| NOW, Savings, MMDA’s | $ | 2,899,510 | 18,784 | 2.57 | % | $ | 2,325,281 | 16,007 | 2.73 | % | ||||||||||||
| Time deposits | 594,664 | 5,254 | 3.51 | % | 424,788 | 3,918 | 3.66 | % | ||||||||||||||
| Short-term borrowings | 7 | - | 0.00 | % | 7 | - | 0.00 | % | ||||||||||||||
| Notes payable & other long-term borrowings | - | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||||
| Subordinated debt | 14,100 | 238 | 6.70 | % | 63,534 | 835 | 5.21 | % | ||||||||||||||
| Junior subordinated deferrable interest debentures | 46,393 | 673 | 5.76 | % | 46,393 | 741 | 6.34 | % | ||||||||||||||
| Total interest-bearing liabilities | 3,554,674 | 24,949 | 2.78 | % | 2,860,003 | 21,501 | 2.98 | % | ||||||||||||||
| Demand deposits | 1,109,748 | 1,010,159 | ||||||||||||||||||||
| Other liabilities | 79,193 | 69,661 | ||||||||||||||||||||
| Stockholders’ equity | 626,261 | 465,938 | ||||||||||||||||||||
| Total liabilities & stockholders’ equity | $ | 5,369,876 | $ | 4,405,761 | ||||||||||||||||||
| Net interest income | $ | 51,694 | $ | 43,253 | ||||||||||||||||||
| Net interest margin(2) | 4.00 | % | 4.05 | % | ||||||||||||||||||
(1) Average loan balances include nonaccrual loans and loans held for sale. (2) Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets. | ||||||||||||||||||||||
| South Plains Financial, Inc. Average Balances and Yields - (Unaudited) (Dollars in thousands) | ||||||||||||||||||||||
| For the Nine Months Ended | ||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | |||||||||||||||||||||
| Average | Average | |||||||||||||||||||||
| Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | |||||||||||||||||
| Assets | ||||||||||||||||||||||
| Loans(1) | $ | 3,585,041 | $ | 182,298 | 6.80 | % | $ | 3,087,530 | $ | 158,406 | 6.86 | % | ||||||||||
| Debt securities - taxable | 480,312 | 12,689 | 3.53 | % | 505,721 | 14,030 | 3.71 | % | ||||||||||||||
| Debt securities - nontaxable | 152,488 | 3,232 | 2.83 | % | 153,486 | 3,109 | 2.71 | % | ||||||||||||||
| Other interest-bearing assets | 625,077 | 16,525 | 3.53 | % | 444,473 | 13,707 | 4.12 | % | ||||||||||||||
| Total interest-earning assets | 4,842,918 | 214,744 | 5.93 | % | 4,191,210 | 189,252 | 6.04 | % | ||||||||||||||
| Noninterest-earning assets | 218,662 | 169,264 | ||||||||||||||||||||
| Total assets | $ | 5,061,580 | $ | 4,360,474 | ||||||||||||||||||
| Liabilities & stockholders’ equity | ||||||||||||||||||||||
| NOW, Savings, MMDA’s | $ | 2,746,269 | 52,191 | 2.54 | % | $ | 2,318,134 | 47,408 | 2.73 | % | ||||||||||||
| Time deposits | 544,710 | 14,441 | 3.54 | % | 435,127 | 12,406 | 3.81 | % | ||||||||||||||
| Short-term borrowings | 1,250 | 38 | 4.06 | % | 9 | - | 0.00 | % | ||||||||||||||
| Notes payable & other long-term borrowings | - | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||||
| Subordinated debt | 14,100 | 719 | 6.82 | % | 63,850 | 2,505 | 5.25 | % | ||||||||||||||
| Junior subordinated deferrable interest debentures | 46,393 | 1,994 | 5.75 | % | 46,393 | 2,209 | 6.37 | % | ||||||||||||||
| Total interest-bearing liabilities | 3,352,722 | 69,383 | 2.77 | % | 2,863,513 | 64,528 | 3.01 | % | ||||||||||||||
| Demand deposits | 1,067,204 | 978,426 | ||||||||||||||||||||
| Other liabilities | 57,696 | 66,471 | ||||||||||||||||||||
| Stockholders’ equity | 583,958 | 452,064 | ||||||||||||||||||||
| Total liabilities & stockholders’ equity | $ | 5,061,580 | $ | 4,360,474 | ||||||||||||||||||
| Net interest income | $ | 145,361 | $ | 124,724 | ||||||||||||||||||
| Net interest margin(2) | 4.01 | % | 3.98 | % | ||||||||||||||||||
(1) Average loan balances include nonaccrual loans and loans held for sale. (2) Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets. | ||||||||||||||||||||||
| South Plains Financial, Inc. Consolidated Balance Sheets (Unaudited) (Dollars in thousands) | ||||||||
| As of | ||||||||
| September 30, 2026 | December 31, 2025 | |||||||
| Assets | ||||||||
| Cash and due from banks | $ | 48,735 | $ | 58,318 | ||||
| Interest-bearing deposits in banks | 728,000 | 494,121 | ||||||
| Securities available for sale | 518,347 | 567,540 | ||||||
| Loans held for sale | 10,451 | 9,993 | ||||||
| Loans held for investment | 3,831,138 | 3,144,502 | ||||||
| Less: Allowance for credit losses | (52,768 | ) | (45,131 | ) | ||||
| Net loans held for investment | 3,778,370 | 3,099,371 | ||||||
| Premises and equipment, net | 51,154 | 51,563 | ||||||
| Goodwill | 66,592 | 19,315 | ||||||
| Intangible assets | 5,265 | 1,133 | ||||||
| Mortgage servicing rights | 27,616 | 24,041 | ||||||
| Other assets | 176,344 | 155,105 | ||||||
| Total assets | $ | 5,410,874 | $ | 4,480,500 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Noninterest bearing deposits | $ | 1,179,107 | $ | 1,023,517 | ||||
| Interest-bearing deposits | 3,481,584 | 2,850,560 | ||||||
| Total deposits | 4,660,691 | 3,874,077 | ||||||
| Short-term borrowings | - | - | ||||||
| Subordinated debt | 14,100 | 14,100 | ||||||
| Junior subordinated deferrable interest debentures | 46,393 | 46,393 | ||||||
| Other liabilities | 66,934 | 52,093 | ||||||
| Total liabilities | 4,788,118 | 3,986,663 | ||||||
| Stockholders’ Equity | ||||||||
| Common stock | 18,848 | 16,294 | ||||||
| Additional paid-in capital | 195,307 | 91,065 | ||||||
| Retained earnings | 479,082 | 434,197 | ||||||
| Accumulated other comprehensive income (loss) | (70,481 | ) | (47,719 | ) | ||||
| Total stockholders’ equity | 622,756 | 493,837 | ||||||
| Total liabilities and stockholders’ equity | $ | 5,410,874 | $ | 4,480,500 | ||||
| South Plains Financial, Inc. Consolidated Statements of Income (Unaudited) (Dollars in thousands) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||
| Interest income: | ||||||||||||||||
| Loans, including fees | $ | 65,495 | $ | 53,928 | $ | 182,278 | $ | 158,384 | ||||||||
| Other | 10,915 | 10,592 | 31,767 | 30,193 | ||||||||||||
| Total interest income | 76,410 | 64,520 | 214,045 | 188,577 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 24,038 | 19,925 | 66,632 | 59,814 | ||||||||||||
| Subordinated debt | 238 | 835 | 719 | 2,505 | ||||||||||||
| Junior subordinated deferrable interest debentures | 673 | 741 | 1,994 | 2,209 | ||||||||||||
| Other | - | - | 38 | - | ||||||||||||
| Total interest expense | 24,949 | 21,501 | 69,383 | 64,528 | ||||||||||||
| Net interest income | 51,461 | 43,019 | 144,662 | 124,049 | ||||||||||||
| Provision for credit losses | 830 | 500 | 1,440 | 3,420 | ||||||||||||
| Net interest income after provision for credit losses | 50,631 | 42,519 | 143,222 | 120,629 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Service charges on deposits | 2,531 | 2,266 | 7,152 | 6,505 | ||||||||||||
| Mortgage banking activities | 4,878 | 2,575 | 13,643 | 8,294 | ||||||||||||
| Bank card services and interchange fees | 3,542 | 3,403 | 10,868 | 10,553 | ||||||||||||
| Other | 2,859 | 2,921 | 7,585 | 8,603 | ||||||||||||
| Total noninterest income | 13,810 | 11,165 | 39,248 | 33,955 | ||||||||||||
| Noninterest expense: | ||||||||||||||||
| Salaries and employee benefits | 22,388 | 19,413 | 66,059 | 58,562 | ||||||||||||
| Net occupancy expense | 4,390 | 4,046 | 12,673 | 12,045 | ||||||||||||
| Professional services | 1,940 | 1,293 | 6,745 | 4,897 | ||||||||||||
| Marketing and development | 1,028 | 979 | 3,061 | 2,803 | ||||||||||||
| Other | 8,328 | 7,293 | 24,926 | 21,290 | ||||||||||||
| Total noninterest expense | 38,074 | 33,024 | 113,464 | 99,597 | ||||||||||||
| Income before income taxes | 26,367 | 20,660 | 69,006 | 54,987 | ||||||||||||
| Income tax expense | 5,602 | 4,342 | 14,704 | 11,770 | ||||||||||||
| Net income | $ | 20,765 | $ | 16,318 | $ | 54,302 | $ | 43,217 | ||||||||
| South Plains Financial, Inc. Loan and Deposit Composition (Unaudited) (Dollars in thousands) | ||||||||||||
| As of | ||||||||||||
| September 30, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||
| Loans: | ||||||||||||
| Commercial Real Estate | $ | 1,364,396 | $ | 1,064,625 | $ | 1,035,926 | ||||||
| Commercial - Specialized | 435,051 | 409,351 | 377,783 | |||||||||
| Commercial - General | 835,328 | 659,323 | 629,256 | |||||||||
| Consumer: | ||||||||||||
| 1-4 Family Residential | 711,700 | 589,851 | 592,578 | |||||||||
| Auto Loans | 270,688 | 259,157 | 256,281 | |||||||||
| Other Consumer | 60,262 | 62,092 | 63,727 | |||||||||
| Construction | 153,713 | 100,103 | 97,952 | |||||||||
| Total loans held for investment | $ | 3,831,138 | $ | 3,144,502 | $ | 3,053,503 | ||||||
| Deposits: | ||||||||||||
| Noninterest-bearing deposits | $ | 1,179,107 | $ | 1,023,517 | $ | 1,049,501 | ||||||
| NOW & other transaction accounts | 1,453,376 | 1,307,596 | 1,291,756 | |||||||||
| MMDA & other savings | 1,462,222 | 1,111,529 | 1,114,945 | |||||||||
| Time deposits | 565,986 | 431,435 | 424,941 | |||||||||
| Total deposits | $ | 4,660,691 | $ | 3,874,077 | $ | 3,881,143 | ||||||
| South Plains Financial, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in thousands) | ||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||
| Pre-tax, pre-provision income | ||||||||||||||||||||
| Net income | $ | 20,765 | $ | 18,992 | $ | 14,545 | $ | 15,254 | $ | 16,318 | ||||||||||
| Income tax expense | 5,602 | 5,286 | 3,816 | 3,832 | 4,342 | |||||||||||||||
| Provision for credit losses | 830 | 350 | 260 | 1,775 | 500 | |||||||||||||||
| Pre-tax, pre-provision income | $ | 27,197 | $ | 24,628 | $ | 18,621 | $ | 20,861 | $ | 21,160 | ||||||||||
| As of | ||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||
| Tangible common equity | ||||||||||||||||||||
| Total common stockholders’ equity | $ | 622,756 | $ | 629,765 | $ | 504,939 | $ | 493,837 | $ | 477,802 | ||||||||||
| Less: goodwill and other intangibles | (71,857 | ) | (72,218 | ) | (20,327 | ) | (20,448 | ) | (20,580 | ) | ||||||||||
| Tangible common equity | $ | 550,899 | $ | 557,547 | $ | 484,612 | $ | 473,389 | $ | 457,222 | ||||||||||
| Tangible assets | ||||||||||||||||||||
| Total assets | $ | 5,410,874 | $ | 5,391,206 | $ | 4,646,374 | $ | 4,480,500 | $ | 4,479,437 | ||||||||||
| Less: goodwill and other intangibles | (71,857 | ) | (72,218 | ) | (20,327 | ) | (20,448 | ) | (20,580 | ) | ||||||||||
| Tangible assets | $ | 5,339,017 | $ | 5,318,988 | $ | 4,626,047 | $ | 4,460,052 | $ | 4,458,857 | ||||||||||
| Shares outstanding | 18,847,573 | 18,839,105 | 16,342,219 | 16,293,577 | 16,247,839 | |||||||||||||||
| Total stockholders’ equity to total assets | 11.51 | % | 11.68 | % | 10.87 | % | 11.02 | % | 10.67 | % | ||||||||||
| Tangible common equity to tangible assets | 10.32 | % | 10.48 | % | 10.48 | % | 10.61 | % | 10.25 | % | ||||||||||
| Book value per share | $ | 33.04 | $ | 33.43 | $ | 30.90 | $ | 30.31 | $ | 29.41 | ||||||||||
| Tangible book value per share | $ | 29.23 | $ | 29.60 | $ | 29.65 | $ | 29.05 | $ | 28.14 | ||||||||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were South Plains Financial's third-quarter 2026 earnings?
South Plains Financial earned $20.8 million, or $1.06 per diluted share, in the third quarter of 2026. Net income compared with $19.0 million in the preceding quarter and $16.3 million a year earlier; diluted EPS was $0.96 in both comparison quarters.
How much did the BOH acquisition contribute to South Plains Financial's loan and deposit growth?
The BOH acquisition contributed $631.9 million of loan growth and $595.6 million of acquired deposits to the year-over-year changes at September 30, 2026. Total loans increased $777.6 million and total deposits increased $779.5 million over that period, with organic growth also contributing.
Why did South Plains Financial's mortgage banking revenue increase in the third quarter of 2026?
Mortgage banking revenue increased $2.3 million year-over-year, mainly because of changes in mortgage servicing rights valuations. Those assets recorded a $1.6 million write-up in the third quarter of 2026, compared with a $925 thousand write-down a year earlier, based on market interest rate changes.
What were South Plains Financial's regulatory capital ratios at September 30, 2026?
South Plains Financial's consolidated total risk-based capital ratio was 16.61%, its common equity tier 1 risk-based capital ratio was 14.20%, and its tier 1 leverage ratio was 12.42% at September 30, 2026.