South Plains Financial (NASDAQ: SPFI) grows Q1 profit and closes BOH deal
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
South Plains Financial, Inc. reported first-quarter 2026 net income of $14.5 million, up from $12.3 million a year earlier, with diluted EPS of $0.85. Net interest income was $42.9 million and tax-equivalent net interest margin held strong at 4.04% as loan yields improved and deposit costs declined.
Loans held for investment were $3.10 billion, down modestly from year-end due to an expected payoff of a large multifamily loan and seasonal agricultural paydowns, while deposits grew to $4.03 billion, supported by organic retail, commercial, and public fund inflows. Asset quality strengthened, with nonperforming assets to total assets improving to 0.13% and annualized net charge-offs at 0.04%.
Capital remained robust: book value per share rose to $30.90 and tangible book value per share to $29.65, with a tangible common equity to tangible assets ratio of 10.48% and common equity tier 1 capital of 14.80%. The company also completed its merger with BOH Holdings, Inc. effective April 1, 2026, which management describes as approximately 11% EPS accretive with a tangible book value earnback under three years.
Positive
- Accretive BOH acquisition: Management estimates the completed BOH Holdings, Inc. merger will be approximately 11% EPS accretive with tangible book value earnback in under three years, while expanding the franchise in the high-growth Houston market.
- Improving asset quality: Nonperforming assets to total assets improved to 0.13%, nonperforming loans to total loans fell to 0.16%, and annualized net charge-offs declined to 0.04%, indicating stronger credit performance.
- Stronger earnings and capital: Net income rose to $14.5 million from $12.3 million a year earlier, while book value per share increased to $30.90 and tangible book value per share to $29.65, supported by a tangible common equity to tangible assets ratio of 10.48%.
Negative
- None.
Insights
Solid Q1, stronger credit, and a clearly accretive Houston acquisition.
South Plains Financial delivered Q1 2026 net income of $14.5M and a tax-equivalent net interest margin of 4.04%. Deposit growth to $4.03B outpaced modest loan contraction, reflecting successful gathering of retail, commercial, and public fund deposits while holding funding costs in check.
Credit quality improved meaningfully: nonperforming assets fell to 0.13% of total assets and annualized net charge-offs were just 0.04%. The allowance for credit losses stayed steady at 1.44% of loans, suggesting the reserve remains conservative even as problem loans decline.
Capital ratios are comfortably above regulatory minimums, with common equity tier 1 at 14.80% and tangible common equity to tangible assets at 10.48%. Management highlights the completed BOH merger as roughly 11% EPS accretive with tangible book value earnback in under three years, indicating potential for improved profitability in periods after April 1, 2026.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income: $14.5M
Diluted EPS: $0.85
Net interest margin: 4.04%
+5 more
8 metrics
Net income
$14.5M
Quarter ended March 31, 2026
Diluted EPS
$0.85
Quarter ended March 31, 2026
Net interest margin
4.04%
Tax-equivalent, Q1 2026
Loans held for investment
$3.10B
As of March 31, 2026
Total deposits
$4.03B
As of March 31, 2026
Nonperforming assets ratio
0.13%
Nonperforming assets to total assets, March 31, 2026
Tangible book value per share
$29.65
As of March 31, 2026
Common equity tier 1 ratio
14.80%
As of March 31, 2026
Key Terms
net interest margin, nonperforming assets, tangible common equity, efficiency ratio, +1 more
5 terms
net interest margin financial
"Net interest margin, calculated on a tax-equivalent basis, was 4.04% for the first quarter of 2026"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
nonperforming assets financial
"The ratio of nonperforming assets to total assets was 0.13% as of March 31, 2026"
Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.
tangible common equity financial
"Tangible common equity to tangible assets (non-GAAP) decreased 13 basis points to 10.48% at March 31, 2026"
Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.
efficiency ratio financial
"Efficiency ratio | | | 65.33 % | | | 61.02 %"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
Tier 1 capital financial
"Tier 1 capital to average assets | | | 12.68 % | | | 12.53 %"
Tier 1 capital is a bank’s core financial cushion—mainly common stock, retained earnings and certain reserves—that can absorb losses while the bank keeps operating. Investors care because it signals a lender’s ability to survive stress, meet regulatory requirements and continue lending or paying dividends; think of it as the engine’s safety margin that keeps a car running through bumps in the road.
Earnings Snapshot
Net income: $14.5M
Q1 2026
Net income
$14.5M
Diluted EPS
$0.85
Net interest income
$42.9M
Net interest margin
4.04%
Total deposits
$4.03B
Loans held for investment
$3.10B
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 28, 2026
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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(806 ) 792-7101
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new
or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Results of Operations and Financial Condition.
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On April 28, 2026, South Plains Financial, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31,
2026. A copy of the Company’s press release covering such announcement and certain other matters is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
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Regulation FD Disclosure.
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On April 28, 2026, officers of the Company will conduct a conference call at 5:00 p.m., Eastern Time, with respect to the Company’s financial results for the first quarter ended March 31, 2026. An earnings release slide presentation highlighting the Company’s financial results for the first quarter ended March 31, 2026 is furnished as Exhibit 99.2 to this Current Report on Form 8-K. This earnings release slide presentation will also be
available on the Company’s website, www.spfi.bank, under the “News & Events” section.
In accordance with General Instruction B.2 of Form 8-K, the information in Items 2.02 and 7.01 of this Current Report on Form 8-K, including
Exhibit 99.1 and Exhibit 99.2 furnished herewith, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The
information in Items 2.02 and 7.01 of this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2 furnished herewith, shall not be incorporated by reference into any filing or other document pursuant to the Exchange Act or the
Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.
| Item 9.01 |
Financial Statements and Exhibits.
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Exhibits.
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| 99.1 |
Press release, dated April 28, 2026, announcing first quarter 2026 financial results of South Plains Financial, Inc.
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Earnings release slide presentation, dated April 28, 2026.
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Cover Page Interactive Data File (formatted as Inline XBRL).
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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SOUTH PLAINS FINANCIAL, INC.
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Date: April 28, 2026
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By:
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/s/ Steven B. Crockett
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Steven B. Crockett
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Chief Financial Officer and Treasurer
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Exhibit 99.1
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South Plains Financial, Inc. Reports First Quarter 2026 Financial Results
LUBBOCK, Texas, April 28, 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 March 31, 2026.
First Quarter 2026 Highlights
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Net income for the first quarter of 2026 was $14.5 million, compared to $15.3 million for the fourth quarter of 2025 and $12.3 million for the first quarter of 2025.
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Diluted earnings per share for the first quarter of 2026 was $0.85, compared to $0.90 for the fourth quarter of 2025 and $0.72 for the first quarter of 2025.
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Average cost of deposits for the first quarter of 2026 was 197 basis points, compared to 201 basis points for the fourth quarter of 2025 and 219 basis points for the
first quarter of 2025.
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Net interest margin, on a tax-equivalent basis, was 4.04% for the first quarter of 2026, compared to 4.00% for the fourth quarter of 2025 and 3.81% for the first
quarter of 2025.
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Return on average assets for the first quarter of 2026 was 1.31%, compared to 1.36% for the fourth quarter of 2025 and 1.16% for the first quarter of 2025.
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Tangible book value (non-GAAP) per share was $29.65 as of March 31, 2026, compared to $29.05 as of December 31, 2025 and $26.05 as of March 31, 2025.
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The consolidated total risk-based capital ratio, common equity tier 1 risk-based capital ratio, and tier 1 leverage ratio at March 31, 2026 were 17.61%, 14.80%, and
12.68%, respectively.
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As previously reported, the Company completed the merger of BOH Holdings, Inc. (“BOH”) with and into South Plains, with South Plains continuing as the surviving
corporation, and the merger of BOH’s wholly-owned subsidiary, Bank of Houston, with and into City Bank, with City Bank continuing as the surviving bank, all effective on April 1, 2026. As of March 31, 2026, BOH had total assets of $685.0
million, total loans of $631.9 million, and total deposits of $595.6 million.
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Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “We delivered solid first quarter results driven by strong profitability,
improving credit quality, and continued discipline across our balance sheet. Alongside the successful completion of the BOH acquisition, we continued to execute our organic growth strategy as we continue to focus on adding experienced lenders
across our attractive Texas markets who bring deep local relationships and align with our culture. We believe what differentiates South Plains is our ability to combine the scale, product capabilities, and capital strength of a larger institution
with the credit discipline and relationship-based approach of a true community bank. As consolidation across the Texas banking landscape continues, we are seeing increased opportunities to attract both customers and talented bankers seeking
stability, local leadership, and consistent execution. While the near-term economic environment remains uncertain and a headwind to loan growth, we are confident in our strategy, our team, and our ability to continue to create long-term value for
our shareholders.”
Results of Operations, Quarter Ended March 31, 2026
Net Interest Income
Net interest income was $42.9 million for the first quarter of 2026, compared to $43.0 million for the fourth quarter of 2025 and $38.5
million for the first quarter of 2025. Net interest margin, calculated on a tax-equivalent basis, was 4.04% for the first quarter of 2026, compared to 4.00% for the fourth quarter of 2025 and 3.81% for the first quarter of 2025. The average yield
on loans was 6.83% for the first quarter of 2026, compared to 6.79% for the fourth quarter of 2025 and 6.67% for the first quarter of 2025. The average cost of deposits was 197 basis points for the first quarter of 2026, which is 4 basis points
lower than the fourth quarter of 2025 and 22 basis points lower than the first quarter of 2025.
Interest income was $62.6 million for the first quarter of 2026, compared to $63.4 million for the fourth quarter of 2025 and $59.9
million for the first quarter of 2025. Interest income decreased $789 thousand in the first quarter of 2026 from the fourth quarter of 2025. This decrease was primarily attributable to a decline of $648 thousand in interest income on securities and
other interest-earning assets resulting from the decrease in short-term interest rates that occurred during the fourth quarter of 2025. Interest income increased $2.7 million in the first quarter of 2026 compared to the first quarter of 2025. This
increase was primarily due to an increase in average loans of $55.6 million and an increase of 16 basis points in loan yield during the period, resulting in growth of $2.1 million in loan interest income over the respective periods.
Interest expense was $19.8 million for the first quarter of 2026, compared to $20.5 million for the fourth quarter of 2025 and $21.4
million for the first quarter of 2025. Interest expense decreased $691 thousand compared to the fourth quarter of 2025 and decreased $1.6 million compared to the first quarter of 2025. The $691 thousand decrease was primarily a result of an 11
basis point decline in the cost of interest-bearing deposits in the first quarter of 2026 as compared to the fourth quarter of 2025, partially offset by an increase of $80.5 million in average interest-bearing deposits during that time. The $1.6
million decrease was primarily the result of a 29 basis point decline in the cost of interest-bearing deposits, partially offset by an increase of $159.9 million in average interest-bearing deposits in the first quarter of 2026 as compared to the
first quarter of 2025, and a reduction in interest expense of $592 thousand as a result of the $50 million subordinated debt redemption in September 2025.
Noninterest Income and Noninterest Expense
Noninterest income was $11.3 million for the first quarter of 2026, compared to $10.9 million for the fourth quarter of 2025 and $10.6
million for the first quarter of 2025. The increase from the fourth quarter of 2025 was primarily due to an increase of $1.5 million in mortgage banking revenues, mainly as a result of the change in the fair value adjustment of the mortgage
servicing rights assets – a write-up of $250 thousand in the first quarter of 2026 compared to a write-down of $665 thousand in the fourth quarter of 2025 – based on interest rate changes during the respective quarters. Additionally, there was an
$801 thousand loss in a Small Business Investment Company (“SBIC”) investment during the first quarter of 2026 due to negative performance of one of the companies in the fund. The increase in noninterest income for the first quarter of 2026 as
compared to the first quarter of 2025 was primarily due to an increase of $1.8 million in mortgage banking revenues, mainly as a result of the change in the fair value adjustment of the mortgage servicing rights assets – a write-up of $250 thousand
in the first quarter of 2026 compared to a write-down of $1.6 million in the first quarter of 2025 – based on interest rate changes during the respective quarters and the above noted loss of $801 thousand in SBIC income.
Noninterest expense was $35.5 million for the first quarter of 2026, compared to $33.0 million for the fourth quarter of 2025 and $33.0
million for the first quarter of 2025. Changes from the fourth quarter of 2025 included an increase of $1.8 million in personnel expense, based on annual salary adjustments and higher incentive-based compensation expense, and an increase of $542
thousand in professional service expenses. There was approximately $1.5 million of acquisition-related expenses in the first quarter of 2026, of which $1.2 million was for professional services, as compared to approximately $500 thousand in the
fourth quarter of 2025, all of which was for professional services. The $2.5 million increase in noninterest expense for the first quarter of 2026 as compared to the first quarter of 2025 was largely the result of an increase of $713 thousand in
personnel expenses, mainly the result of annual salary adjustments and the new lender hiring initiative, and an increase in professional service expenses of $1.2 million, predominately from the acquisition-related expenses in the first quarter of
2026 noted above.
Loan Portfolio and Composition
Loans held for investment were $3.10 billion as of March 31, 2026, compared to $3.14 billion as of December 31, 2025 and $3.08 billion
as of March 31, 2025. The decrease of $41.0 million, or 1.3%, during the first quarter of 2026 as compared to the fourth quarter of 2025 occurred primarily as a result of the expected early payoff of a $29.7 million multi-family property loan and
the seasonal net paydowns on agricultural operating loans of $24.4 million, partially offset by organic loan growth. As of March 31, 2026, loans held for investment increased $27.7 million as compared to March 31, 2025, primarily as a result of
organic growth broadly across the loan portfolio, partially offset by a decrease of $111.0 million in multi-family property loans.
Deposits and Borrowings
Deposits totaled $4.03 billion as of March 31, 2026, compared to $3.87 billion as of December 31, 2025 and $3.79 billion as of March 31,
2025. Deposits increased by $153.5 million, or 4.0%, in the first quarter of 2026 from December 31, 2025. Deposits increased by $235.1 million, or 6.2%, at March 31, 2026 as compared to March 31, 2025. Noninterest-bearing deposits were $1.03
billion as of March 31, 2026, compared to $1.0 billion as of December 31, 2025 and $966.5 million as of March 31, 2025. Noninterest-bearing deposits represented 25.7% of total deposits as of March 31, 2026. The quarterly and year-over-year change
in total deposits was due to organic growth in both retail, commercial, and public fund deposits.
Asset Quality
The Company recorded a provision for credit losses in the first quarter of 2026 of $260 thousand, compared to $1.8 million in the fourth
quarter of 2025 and $420 thousand in the first quarter of 2025. The decrease in provision for the first quarter of 2026 as compared to the fourth quarter of 2025 was largely attributable to the decrease in loan balances noted above, a decrease of
$4.8 million in nonperforming loans, and a decrease of $460 thousand in loan net charge-offs during the compared quarters.
The ratio of allowance for credit losses to loans held for investment was 1.44% as of March 31, 2026, compared to 1.44% as of December
31, 2025 and 1.40% as of March 31, 2025.
The ratio of nonperforming assets to total assets was 0.13% as of March 31, 2026, compared to 0.26% as of December 31, 2025 and 0.16% as
of March 31, 2025. Annualized net charge-offs were 0.04% for the first quarter of 2026, compared to 0.10% for the fourth quarter of 2025 and 0.07% for the first quarter of 2025.
Capital
Book value per share increased to $30.90 at March 31, 2026, compared to $30.31 at December 31, 2025. The change was primarily driven by
$11.8 million of net income after dividends paid during the first quarter of 2026. The ratio of tangible common equity to tangible assets (non-GAAP) decreased 13 basis points to 10.48% at March 31, 2026 based on growth in assets during the first
quarter of 2026.
Conference Call
South Plains will host a conference call to discuss its first quarter 2026 financial results today, April 28, 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 13759880. The replay will be available until May 12, 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 or further reductions in interest rates and a resulting decline in net interest income; the lingering inflationary pressures, and the risk of
the resurgence of elevated levels of inflation, in the United States and our market areas; the uncertain impacts of current and future monetary policies of the Board of Governors of the Federal Reserve System; changes in unemployment rates in the
United States and our market areas; adverse changes in customer spending, borrowing and savings habits; declines in 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; the risks related to the development, implementation, use and management of emerging technologies, including 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 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.
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Contact:
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Mikella Newsom, Chief Risk Officer and Secretary
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(866) 771-3347
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investors@city.bank
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Source: South Plains Financial, Inc.
South Plains Financial, Inc.
Consolidated Financial Highlights - (Unaudited)
(Dollars in thousands, except share data)
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As of and for the quarter ended
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March 31,
2026
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December 31,
2025
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September 30,
2025
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June 30,
2025
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March 31,
2025
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Selected Income Statement Data:
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Interest income
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$
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62,632
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$
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63,421
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$
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64,520
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$
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64,135
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$
|
59,922
|
||||||||||
|
Interest expense
|
19,780
|
20,471
|
21,501
|
21,632
|
21,395
|
|||||||||||||||
|
Net interest income
|
42,852
|
42,950
|
43,019
|
42,503
|
38,527
|
|||||||||||||||
|
Provision for credit losses
|
260
|
1,775
|
500
|
2,500
|
420
|
|||||||||||||||
|
Noninterest income
|
11,295
|
10,934
|
11,165
|
12,165
|
10,625
|
|||||||||||||||
|
Noninterest expense
|
35,526
|
33,023
|
33,024
|
33,543
|
33,030
|
|||||||||||||||
|
Income tax expense
|
3,816
|
3,832
|
4,342
|
4,020
|
3,408
|
|||||||||||||||
|
Net income
|
14,545
|
15,254
|
16,318
|
14,605
|
12,294
|
|||||||||||||||
|
Per Share Data (Common Stock):
|
||||||||||||||||||||
|
Net earnings, basic
|
$
|
0.89
|
$
|
0.94
|
$
|
1.00
|
$
|
0.90
|
$
|
0.75
|
||||||||||
|
Net earnings, diluted
|
0.85
|
0.90
|
0.96
|
0.86
|
0.72
|
|||||||||||||||
|
Cash dividends declared and paid
|
0.17
|
0.16
|
0.16
|
0.15
|
0.15
|
|||||||||||||||
|
Book value
|
30.90
|
30.31
|
29.41
|
27.98
|
27.33
|
|||||||||||||||
|
Tangible book value (non-GAAP)
|
29.65
|
29.05
|
28.14
|
26.70
|
26.05
|
|||||||||||||||
|
Weighted average shares outstanding, basic
|
16,318,570
|
16,248,336
|
16,241,695
|
16,231,627
|
16,415,862
|
|||||||||||||||
|
Weighted average shares outstanding, dilutive
|
17,036,334
|
16,996,517
|
16,990,546
|
16,886,993
|
17,065,599
|
|||||||||||||||
|
Shares outstanding at end of period
|
16,342,219
|
16,293,577
|
16,247,839
|
16,230,475
|
16,235,647
|
|||||||||||||||
|
Selected Period End Balance Sheet Data:
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$
|
722,000
|
$
|
552,439
|
$
|
635,046
|
$
|
470,496
|
$
|
536,300
|
||||||||||
|
Investment securities
|
602,852
|
567,540
|
571,138
|
570,000
|
571,527
|
|||||||||||||||
|
Total loans held for investment
|
3,103,529
|
3,144,502
|
3,053,503
|
3,098,978
|
3,075,860
|
|||||||||||||||
|
Allowance for credit losses
|
44,822
|
45,131
|
44,125
|
45,010
|
42,968
|
|||||||||||||||
|
Total assets
|
4,646,374
|
4,480,500
|
4,479,437
|
4,363,674
|
4,405,209
|
|||||||||||||||
|
Interest-bearing deposits
|
2,993,469
|
2,850,560
|
2,831,642
|
2,740,179
|
2,826,055
|
|||||||||||||||
|
Noninterest-bearing deposits
|
1,034,117
|
1,023,517
|
1,049,501
|
998,759
|
966,464
|
|||||||||||||||
|
Total deposits
|
4,027,586
|
3,874,077
|
3,881,143
|
3,738,938
|
3,792,519
|
|||||||||||||||
|
Borrowings
|
60,493
|
60,493
|
60,493
|
111,799
|
110,400
|
|||||||||||||||
|
Total stockholders’ equity
|
504,939
|
493,837
|
477,802
|
454,074
|
443,743
|
|||||||||||||||
|
Summary Performance Ratios:
|
||||||||||||||||||||
|
Return on average assets (annualized)
|
1.31
|
%
|
1.36
|
%
|
1.47
|
%
|
1.34
|
%
|
1.16
|
%
|
||||||||||
|
Return on average equity (annualized)
|
11.81
|
%
|
12.46
|
%
|
13.89
|
%
|
13.05
|
%
|
11.30
|
%
|
||||||||||
|
Net interest margin (1)
|
4.04
|
%
|
4.00
|
%
|
4.05
|
%
|
4.07
|
%
|
3.81
|
%
|
||||||||||
|
Yield on loans
|
6.83
|
%
|
6.79
|
%
|
6.92
|
%
|
6.99
|
%
|
6.67
|
%
|
||||||||||
|
Cost of interest-bearing deposits
|
2.64
|
%
|
2.75
|
%
|
2.87
|
%
|
2.91
|
%
|
2.93
|
%
|
||||||||||
|
Efficiency ratio
|
65.33
|
%
|
61.02
|
%
|
60.69
|
%
|
61.11
|
%
|
66.90
|
%
|
||||||||||
|
Summary Credit Quality Data:
|
||||||||||||||||||||
|
Nonperforming loans
|
$
|
4,995
|
$
|
9,805
|
$
|
9,709
|
$
|
10,463
|
$
|
6,467
|
||||||||||
|
Nonperforming loans to total loans held for investment
|
0.16
|
%
|
0.31
|
%
|
0.32
|
%
|
0.34
|
%
|
0.21
|
%
|
||||||||||
|
Other real estate owned
|
$
|
994
|
$
|
1,749
|
$
|
1,827
|
$
|
535
|
$
|
600
|
||||||||||
|
Nonperforming assets to total assets
|
0.13
|
%
|
0.26
|
%
|
0.26
|
%
|
0.25
|
%
|
0.16
|
%
|
||||||||||
|
Allowance for credit losses to total loans held for investment
|
1.44
|
%
|
1.44
|
%
|
1.45
|
%
|
1.45
|
%
|
1.40
|
%
|
||||||||||
|
Net charge-offs to average loans outstanding (annualized)
|
0.04
|
%
|
0.10
|
%
|
0.16
|
%
|
0.06
|
%
|
0.07
|
%
|
||||||||||
|
As of and for the quarter ended
|
||||||||||||||||||||
|
March 31
2026
|
December 31,
2025
|
September 30,
2025
|
June 30,
2025
|
March 31,
2025
|
||||||||||||||||
|
Capital Ratios:
|
||||||||||||||||||||
|
Total stockholders’ equity to total assets
|
10.87
|
%
|
11.02
|
%
|
10.67
|
%
|
10.41
|
%
|
10.07
|
%
|
||||||||||
|
Tangible common equity to tangible assets (non-GAAP)
|
10.48
|
%
|
10.61
|
%
|
10.25
|
%
|
9.98
|
%
|
9.64
|
%
|
||||||||||
|
Common equity tier 1 to risk-weighted assets
|
14.80
|
%
|
14.45
|
%
|
14.41
|
%
|
13.86
|
%
|
13.59
|
%
|
||||||||||
|
Tier 1 capital to average assets
|
12.68
|
%
|
12.53
|
%
|
12.37
|
%
|
12.12
|
%
|
12.04
|
%
|
||||||||||
|
Total capital to risk-weighted assets
|
17.61
|
%
|
17.26
|
%
|
17.34
|
%
|
18.17
|
%
|
17.93
|
%
|
||||||||||
| (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
|
||||||||||||||||||||||||
|
March 31, 2026
|
March 31, 2025
|
|||||||||||||||||||||||
|
Average
Balance
|
Interest
|
Yield/Rate
|
Average
Balance
|
Interest
|
Yield/Rate
|
|||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Loans (1)
|
$
|
3,130,166
|
$
|
52,684
|
6.83
|
%
|
$
|
3,074,568
|
$
|
50,577
|
6.67
|
%
|
||||||||||||
|
Debt securities - taxable
|
490,111
|
4,285
|
3.55
|
%
|
510,354
|
4,692
|
3.73
|
%
|
||||||||||||||||
|
Debt securities - nontaxable
|
153,265
|
1,080
|
2.86
|
%
|
153,229
|
1,014
|
2.68
|
%
|
||||||||||||||||
|
Other interest-bearing assets
|
556,539
|
4,817
|
3.51
|
%
|
386,979
|
3,859
|
4.04
|
%
|
||||||||||||||||
|
Total interest-earning assets
|
4,330,081
|
62,866
|
5.89
|
%
|
4,125,130
|
60,142
|
5.91
|
%
|
||||||||||||||||
|
Noninterest-earning assets
|
180,943
|
171,683
|
||||||||||||||||||||||
|
Total assets
|
$
|
4,511,024
|
$
|
4,296,813
|
||||||||||||||||||||
|
Liabilities & stockholders’ equity
|
||||||||||||||||||||||||
|
NOW, Savings, MMDA’s
|
$
|
2,467,478
|
15,054
|
2.47
|
%
|
$
|
2,302,344
|
15,511
|
2.73
|
%
|
||||||||||||||
|
Time deposits
|
436,649
|
3,824
|
3.55
|
%
|
441,895
|
4,316
|
3.96
|
%
|
||||||||||||||||
|
Short-term borrowings
|
3
|
—
|
0.00
|
%
|
3
|
—
|
0.00
|
%
|
||||||||||||||||
|
Notes payable & other long-term borrowings
|
—
|
—
|
0.00
|
%
|
—
|
—
|
0.00
|
%
|
||||||||||||||||
|
Subordinated debt
|
14,100
|
243
|
6.99
|
%
|
63,984
|
835
|
5.29
|
%
|
||||||||||||||||
|
Junior subordinated deferrable interest debentures
|
46,393
|
659
|
5.76
|
%
|
46,393
|
733
|
6.41
|
%
|
||||||||||||||||
|
Total interest-bearing liabilities
|
2,964,623
|
19,780
|
2.71
|
%
|
2,854,619
|
21,395
|
3.04
|
%
|
||||||||||||||||
|
Demand deposits
|
989,518
|
934,775
|
||||||||||||||||||||||
|
Other liabilities
|
57,355
|
66,073
|
||||||||||||||||||||||
|
Stockholders’ equity
|
499,528
|
441,346
|
||||||||||||||||||||||
|
Total liabilities & stockholders’ equity
|
$
|
4,511,024
|
$
|
4,296,813
|
||||||||||||||||||||
|
Net interest income
|
$
|
43,086
|
$
|
38,747
|
||||||||||||||||||||
|
Net interest margin (2)
|
4.04
|
%
|
3.81
|
%
|
||||||||||||||||||||
| (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
|
||||||||
|
March 31,
2026
|
December 31,
2025
|
|||||||
|
Assets
|
||||||||
|
Cash and due from banks
|
$
|
45,881
|
$
|
58,318
|
||||
|
Interest-bearing deposits in banks
|
676,119
|
494,121
|
||||||
|
Securities available for sale
|
602,852
|
567,540
|
||||||
|
Loans held for sale
|
17,203
|
9,993
|
||||||
|
Loans held for investment
|
3,103,529
|
3,144,502
|
||||||
|
Less: Allowance for credit losses
|
(44,822
|
)
|
(45,131
|
)
|
||||
|
Net loans held for investment
|
3,058,707
|
3,099,371
|
||||||
|
Premises and equipment, net
|
51,585
|
51,563
|
||||||
|
Goodwill
|
19,315
|
19,315
|
||||||
|
Intangible assets
|
1,012
|
1,133
|
||||||
|
Mortgage servicing rights
|
24,611
|
24,041
|
||||||
|
Other assets
|
149,089
|
155,105
|
||||||
|
Total assets
|
$
|
4,646,374
|
$
|
4,480,500
|
||||
|
Liabilities and Stockholders’ Equity
|
||||||||
|
Noninterest-bearing deposits
|
$
|
1,034,117
|
$
|
1,023,517
|
||||
|
Interest-bearing deposits
|
2,993,469
|
2,850,560
|
||||||
|
Total deposits
|
4,027,586
|
3,874,077
|
||||||
|
Short-term borrowings
|
—
|
—
|
||||||
|
Subordinated debt
|
14,100
|
14,100
|
||||||
|
Junior subordinated deferrable interest debentures
|
46,393
|
46,393
|
||||||
|
Other liabilities
|
53,356
|
52,093
|
||||||
|
Total liabilities
|
4,141,435
|
3,986,663
|
||||||
|
Stockholders’ Equity
|
||||||||
|
Common stock
|
16,342
|
16,294
|
||||||
|
Additional paid-in capital
|
91,244
|
91,065
|
||||||
|
Retained earnings
|
445,971
|
434,197
|
||||||
|
Accumulated other comprehensive income (loss)
|
(48,618
|
)
|
(47,719
|
)
|
||||
|
Total stockholders’ equity
|
504,939
|
493,837
|
||||||
|
Total liabilities and stockholders’ equity
|
$
|
4,646,374
|
$
|
4,480,500
|
||||
South Plains Financial, Inc.
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands)
|
Three Months Ended
|
||||||||
|
March 31,
2026
|
March 31,
2025
|
|||||||
|
Interest income:
|
||||||||
|
Loans, including fees
|
$
|
52,677
|
$
|
50,570
|
||||
|
Other
|
9,955
|
9,352
|
||||||
|
Total interest income
|
62,632
|
59,922
|
||||||
|
Interest expense:
|
||||||||
|
Deposits
|
18,878
|
19,827
|
||||||
|
Subordinated debt
|
243
|
835
|
||||||
|
Junior subordinated deferrable interest debentures
|
659
|
733
|
||||||
|
Other
|
—
|
—
|
||||||
|
Total interest expense
|
19,780
|
21,395
|
||||||
|
Net interest income
|
42,852
|
38,527
|
||||||
|
Provision for credit losses
|
260
|
420
|
||||||
|
Net interest income after provision for credit losses
|
42,592
|
38,107
|
||||||
|
Noninterest income:
|
||||||||
|
Service charges on deposits
|
2,255
|
2,141
|
||||||
|
Mortgage banking activities
|
3,918
|
2,113
|
||||||
|
Bank card services and interchange fees
|
3,216
|
3,379
|
||||||
|
Other
|
1,906
|
2,992
|
||||||
|
Total noninterest income
|
11,295
|
10,625
|
||||||
|
Noninterest expense:
|
||||||||
|
Salaries and employee benefits
|
20,154
|
19,441
|
||||||
|
Net occupancy expense
|
3,953
|
4,027
|
||||||
|
Professional services
|
2,955
|
1,730
|
||||||
|
Marketing and development
|
1,001
|
905
|
||||||
|
Other
|
7,463
|
6,927
|
||||||
|
Total noninterest expense
|
35,526
|
33,030
|
||||||
|
Income before income taxes
|
18,361
|
15,702
|
||||||
|
Income tax expense
|
3,816
|
3,408
|
||||||
|
Net income
|
$
|
14,545
|
$
|
12,294
|
||||
South Plains Financial, Inc.
Loan Composition
(Unaudited)
(Dollars in thousands)
|
As of
|
||||||||
|
March 31,
2026
|
December 31,
2025
|
|||||||
|
Loans:
|
||||||||
|
Commercial Real Estate
|
$
|
1,052,951
|
$
|
1,064,625
|
||||
|
Commercial - Specialized
|
384,861
|
409,351
|
||||||
|
Commercial - General
|
654,634
|
659,323
|
||||||
|
Consumer:
|
||||||||
|
1-4 Family Residential
|
589,026
|
589,851
|
||||||
|
Auto Loans
|
256,056
|
259,157
|
||||||
|
Other Consumer
|
62,557
|
62,092
|
||||||
|
Construction
|
103,444
|
100,103
|
||||||
|
Total loans held for investment
|
$
|
3,103,529
|
$
|
3,144,502
|
||||
South Plains Financial, Inc.
Deposit Composition
(Unaudited)
(Dollars in thousands)
|
As of
|
||||||||
|
March 31,
2026
|
December 31,
2025
|
|||||||
|
Deposits:
|
||||||||
|
Noninterest-bearing deposits
|
$
|
1,034,117
|
$
|
1,023,517
|
||||
|
NOW & other transaction accounts
|
1,276,159
|
1,307,596
|
||||||
|
MMDA & other savings
|
1,275,974
|
1,111,529
|
||||||
|
Time deposits
|
441,336
|
431,435
|
||||||
|
Total deposits
|
$
|
4,027,586
|
$
|
3,874,077
|
||||
South Plains Financial, Inc.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(Dollars in thousands)
|
For the quarter ended
|
||||||||||||||||||||
|
March 31,
2026
|
December 31,
2025
|
September 30,
2025
|
June 30,
2025
|
March 31,
2025
|
||||||||||||||||
|
Pre-tax, pre-provision income
|
||||||||||||||||||||
|
Net income
|
$
|
14,545
|
$
|
15,254
|
$
|
16,318
|
$
|
14,605
|
$
|
12,294
|
||||||||||
|
Income tax expense
|
3,816
|
3,832
|
4,342
|
4,020
|
3,408
|
|||||||||||||||
|
Provision for credit losses
|
260
|
1,775
|
500
|
2,500
|
420
|
|||||||||||||||
|
Pre-tax, pre-provision income
|
$
|
18,621
|
$
|
20,861
|
$
|
21,160
|
$
|
21,125
|
$
|
16,122
|
||||||||||
|
As of
|
||||||||||||||||||||
|
March 31,
2026
|
December 31,
2025
|
September 30,
2025
|
June 30,
2025
|
March 31,
2025
|
||||||||||||||||
|
Tangible common equity
|
||||||||||||||||||||
|
Total common stockholders’ equity
|
$
|
504,939
|
$
|
493,837
|
$
|
$ 477,802
|
$
|
$ 454,074
|
$
|
$ 443,743
|
||||||||||
|
Less: goodwill and other intangibles
|
(20,327
|
)
|
(20,448
|
)
|
(20,580
|
)
|
(20,732
|
)
|
(20,884
|
)
|
||||||||||
|
Tangible common equity
|
$
|
484,612
|
$
|
473,389
|
$
|
$ 457,222
|
$
|
$ 433,342
|
$
|
$ 422,859
|
||||||||||
|
Tangible assets
|
||||||||||||||||||||
|
Total assets
|
$
|
4,646,374
|
$
|
4,480,500
|
$
|
$ 4,479,437
|
$
|
$ 4,363,674
|
$
|
$ 4,405,209
|
||||||||||
|
Less: goodwill and other intangibles
|
(20,327
|
)
|
(20,448
|
)
|
(20,580
|
)
|
(20,732
|
)
|
(20,884
|
)
|
||||||||||
|
Tangible assets
|
$
|
4,626,047
|
$
|
4,460,052
|
$
|
$ 4,458,857
|
$
|
$ 4,342,942
|
$
|
$ 4,384,325
|
||||||||||
|
Shares outstanding
|
16,342,219
|
16,293,577
|
16,247,839
|
16,230,475
|
16,235,647
|
|||||||||||||||
|
Total stockholders’ equity to total assets
|
10.87
|
%
|
11.02
|
%
|
10.67
|
%
|
10.41
|
%
|
10.07
|
%
|
||||||||||
|
Tangible common equity to tangible assets
|
10.48
|
%
|
10.61
|
%
|
10.25
|
%
|
9.98
|
%
|
9.64
|
%
|
||||||||||
|
Book value per share
|
$
|
30.90
|
$
|
30.31
|
$
|
29.41
|
$
|
27.98
|
$
|
27.33
|
||||||||||
|
Tangible book value per share
|
$
|
29.65
|
$
|
29.05
|
$
|
28.14
|
$
|
26.70
|
$
|
26.05
|
||||||||||
Exhibit 99.2
FAQ
How did South Plains Financial (SPFI) perform in Q1 2026?
South Plains Financial reported net income of $14.5 million for Q1 2026, up from $12.3 million a year earlier. Diluted EPS was $0.85, net interest income was $42.9 million, and tax-equivalent net interest margin was a solid 4.04%.
What were South Plains Financial’s key balance sheet trends in Q1 2026?
Loans held for investment were $3.10 billion, slightly below year-end due to expected paydowns, while deposits increased to $4.03 billion. Noninterest-bearing deposits reached $1.03 billion, representing 25.7% of total deposits at March 31, 2026.
How strong is South Plains Financial’s asset quality after Q1 2026?
Asset quality improved, with nonperforming assets to total assets at 0.13% and nonperforming loans to total loans at 0.16%. Annualized net charge-offs were low at 0.04%, while the allowance for credit losses remained 1.44% of loans held for investment.
What capital levels did South Plains Financial report for Q1 2026?
Total stockholders’ equity was $504.9 million, with book value per share of $30.90 and tangible book value per share of $29.65. The tangible common equity to tangible assets ratio was 10.48%, and common equity tier 1 capital reached 14.80% of risk-weighted assets.
What are the details of South Plains Financial’s BOH acquisition?
Effective April 1, 2026, South Plains completed the merger of BOH Holdings, Inc. and Bank of Houston into City Bank. Management describes the deal as roughly 11% EPS accretive with tangible book value earnback in under three years, adding meaningful Houston-market scale.
How did noninterest income and expenses trend for SPFI in Q1 2026?
Noninterest income was $11.3 million, aided by higher mortgage banking revenue and a favorable mortgage servicing rights valuation adjustment. Noninterest expense rose to $35.5 million, reflecting higher personnel costs and about $1.5 million of acquisition-related professional services.