South Plains Financial (NASDAQ:SPFI) Posts Quarterly Earnings Results, Beats Expectations By $0.06 EPS

South Plains Financial (NASDAQ:SPFI) announced its earnings results on Monday. The company reported $0.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.84 by $0.06, FiscalAI reports. The business had revenue of $53.88 million during the quarter, compared to analysts’ expectations of $54.11 million. South Plains Financial had a net margin of 19.69% and a return on equity of 12.75%.

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

• FY2025 results were strong — diluted EPS rose 17.8%, tangible book value per share increased to $29.05, and NIM expanded ~33 bps with a 4.0% NIM in Q4.
• South Plains entered a definitive agreement to acquire Bank of Houston, adding roughly $633M of loans and $629M of deposits, and the company expects the deal to be ~11% accretive to earnings in 2027 with TBV earn-back in under three years.
• Management expects loan growth to accelerate to a mid- to high-single-digit rate in 2026 driven by recruited lenders, organic activity, and the BOH addition, but noted some near-term multifamily payoffs could pressure Q1.
• Credit metrics are steady — allowance for credit losses to loans was 1.44% and the indirect auto portfolio remains high quality (now ~87.7% super-prime/prime), though provisions rose to $1.8M in Q4 due to strong loan growth.
• NIM and deposit-cost outlook carries risk — management aims to hold margins, but competition and deposit repricing could cause some NIM compression, with deposit beta exposure discussed in the ~30–35% range.

South Plains Financial Trading Down 2.2%

Shares of NASDAQ SPFI opened at $40.41 on Wednesday. The company’s fifty day moving average is $39.55 and its 200-day moving average is $38.96. The stock has a market cap of $656.58 million, a price-to-earnings ratio of 11.75 and a beta of 0.60. South Plains Financial has a twelve month low of $30.01 and a twelve month high of $43.90. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 0.13.

South Plains Financial Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, February 17th. Shareholders of record on Monday, February 2nd will be issued a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.7%. This is a boost from South Plains Financial’s previous quarterly dividend of $0.16. The ex-dividend date is Monday, February 2nd. South Plains Financial’s dividend payout ratio (DPR) is 19.77%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of South Plains Financial by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,066 shares of the company’s stock valued at $234,000 after purchasing an additional 312 shares in the last quarter. Empowered Funds LLC increased its holdings in shares of South Plains Financial by 0.4% during the 1st quarter. Empowered Funds LLC now owns 89,245 shares of the company’s stock worth $2,956,000 after acquiring an additional 398 shares during the last quarter. Jane Street Group LLC bought a new stake in South Plains Financial in the 1st quarter valued at $315,000. Rhumbline Advisers boosted its position in South Plains Financial by 14.0% during the second quarter. Rhumbline Advisers now owns 20,622 shares of the company’s stock worth $743,000 after purchasing an additional 2,532 shares during the period. Finally, Northwestern Mutual Wealth Management Co. bought a new position in South Plains Financial during the second quarter worth $106,000. 54.95% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting South Plains Financial

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

• Positive Sentiment: Hovde Group raised its price target to $49 and assigned an “outperform” — signaling about ~21% upside from current levels and providing analyst support for the stock’s longer‑term upside.
• Positive Sentiment: Full‑year 2025 results showed material improvement: net income rose to $58.5M and diluted EPS increased to $3.44 (vs $2.92 in 2024), tangible book value per share grew >14% — reinforcing capital strength and earnings power. Full year and Q4 results (Quiver)
• Positive Sentiment: Management expects to accelerate loan growth to a mid‑to‑high single‑digit rate in 2026 and is advancing expansion in Houston via the BOH/Bank of Houston deal — a growth catalyst if executed and approved. Loan growth & expansion (Seeking Alpha)
• Neutral Sentiment: Q4 EPS beat consensus ($0.90 vs $0.84) while revenue was roughly in line to slightly below expectations — a classic “beat but mixed” release that limits decisive reaction either way. Earnings summary & materials (MarketBeat)
• Neutral Sentiment: Company released the earnings presentation and full call transcript for investors; slides and commentary contain additional color on margins, deposit costs, and acquisition rationale for BOH. Earnings call transcript (Seeking Alpha)
• Negative Sentiment: Quarterly headwinds: Q4 net income and diluted EPS were down versus the prior quarter and year‑ago quarter (QoQ EPS decline to $0.90 from $0.96), noninterest income — particularly mortgage banking revenue — fell, and provisions rose modestly; investors may be penalizing the sequential softness. Q4 results & press release (Business Insider)
• Negative Sentiment: Notable insider selling was reported (recent open‑market sales), which can weigh on investor sentiment even though company fundamentals remain solid. Insider activity noted (Quiver)

Wall Street Analyst Weigh In

SPFI has been the subject of several recent analyst reports. Hovde Group raised their price objective on shares of South Plains Financial from $47.00 to $49.00 and gave the stock an “outperform” rating in a report on Tuesday. Weiss Ratings restated a “buy (b)” rating on shares of South Plains Financial in a research report on Monday, December 22nd. Keefe, Bruyette & Woods lifted their price objective on South Plains Financial from $45.00 to $46.00 and gave the stock an “outperform” rating in a research report on Friday, December 12th. Raymond James Financial upped their target price on shares of South Plains Financial from $42.00 to $44.00 and gave the company an “outperform” rating in a research report on Wednesday, January 7th. Finally, Piper Sandler reissued a “neutral” rating and set a $45.00 price target on shares of South Plains Financial in a research note on Tuesday. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $46.00.

About South Plains Financial

South Plains Financial, Inc is the bank holding company for South Plains Bank, a community-oriented financial institution headquartered in Lubbock, Texas. The company operates as a full-service commercial bank, providing a broad spectrum of banking solutions to individuals, small businesses and agricultural clients. Its principal subsidiary, South Plains Bank, holds state and national banking charters and is subject to regulatory oversight by the Federal Reserve and various state banking authorities.

The company’s product offerings include traditional deposit accounts such as checking, savings and money market accounts, as well as time deposits.