South Plains Financial (NASDAQ:SPFI) Releases Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Key Points

• South Plains Financial reported Q1 EPS of $0.85, missing consensus by $0.03 and down from $0.90 a year earlier as acquisition-related expenses and an SBIC investment loss pushed non-interest expenses up about $2.5 million.
• The company completed the April 1 acquisition of Bank of Houston, which management expects to be ~11% accretive to 2027 EPS with a tangible-book earnback of under three years and initial balance-sheet optimization already underway.
• Deposits grew $154 million to $4.03 billion and deposit costs eased to 1.97%; the bank remains well-capitalized (TCE/tangible assets ~10.48%), and the board approved a $0.17 quarterly dividend alongside a $10 million share buyback program.

South Plains Financial (NASDAQ:SPFI - Get Free Report) posted its earnings results on Tuesday. The company reported $0.85 EPS for the quarter, missing analysts' consensus estimates of $0.88 by ($0.03), Zacks reports. South Plains Financial had a net margin of 19.69% and a return on equity of 12.51%.

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

• Completed the April 1 acquisition of Bank of Houston; management expects the deal to be ~11% accretive to 2027 EPS with a tangible book earnback of under three years, core conversion completed in early May and initial balance-sheet optimization (reduced broker deposits and FHLB borrowings) already underway.
• First-quarter diluted EPS fell to $0.85 from $0.90, pressured by acquisition-related expenses and an SBIC investment loss; non-interest expense rose ~$2.5 million (including ~$1.5 million of acquisition costs).
• Deposits grew $154 million to $4.03 billion and deposit cost eased to 1.97%; the bank remains well-capitalized (TCE/tangible assets ~10.48%, tangible book $29.65) and the board approved a $0.17 quarterly dividend (28th consecutive), with a share buyback program in place.
• Loans held for investment fell $41 million (multifamily payoffs and seasonal ag paydowns), but unfunded commitments and a healthy pipeline—supported by ongoing lender hires—leave management comfortable with low‑to‑mid single‑digit loan growth guidance for 2026, likely toward the lower end.

South Plains Financial Stock Performance

Shares of NASDAQ:SPFI traded up $0.61 during midday trading on Tuesday, hitting $43.85. The company's stock had a trading volume of 159,188 shares, compared to its average volume of 91,667. The stock has a market capitalization of $716.51 million, a price-to-earnings ratio of 12.75 and a beta of 0.54. The stock's 50 day simple moving average is $42.20 and its 200 day simple moving average is $40.32. South Plains Financial has a fifty-two week low of $32.79 and a fifty-two week high of $45.09. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.94 and a current ratio of 0.94.

South Plains Financial Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, May 11th. Stockholders of record on Monday, April 27th will be given a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Monday, April 27th. South Plains Financial's dividend payout ratio (DPR) is currently 19.77%.

Analysts Set New Price Targets

Several research firms have weighed in on SPFI. Hovde Group raised their target price on South Plains Financial from $47.00 to $49.00 and gave the company an "outperform" rating in a report on Tuesday, January 27th. Zacks Research lowered South Plains Financial from a "strong-buy" rating to a "hold" rating in a report on Friday, March 27th. Piper Sandler upgraded South Plains Financial from a "neutral" rating to an "overweight" rating and raised their target price for the company from $45.00 to $48.00 in a report on Monday, March 2nd. Weiss Ratings restated a "buy (b)" rating on shares of South Plains Financial in a report on Friday. Finally, Raymond James Financial raised their target price on South Plains Financial from $42.00 to $44.00 and gave the company an "outperform" rating in a report on Wednesday, January 7th. Five research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $46.75.

South Plains Financial announced that its Board of Directors has initiated a stock buyback plan on Monday, February 23rd that allows the company to repurchase $10.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board believes its stock is undervalued.

Institutional Investors Weigh In On South Plains Financial

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. grew its position in shares of South Plains Financial by 1.1% in the third quarter. Vanguard Group Inc. now owns 706,328 shares of the company's stock valued at $27,300,000 after purchasing an additional 7,889 shares during the last quarter. Dimensional Fund Advisors LP grew its position in South Plains Financial by 2.0% during the third quarter. Dimensional Fund Advisors LP now owns 480,837 shares of the company's stock worth $18,584,000 after buying an additional 9,484 shares in the last quarter. JPMorgan Chase & Co. grew its position in South Plains Financial by 15.0% during the fourth quarter. JPMorgan Chase & Co. now owns 437,995 shares of the company's stock worth $16,994,000 after buying an additional 57,008 shares in the last quarter. Geode Capital Management LLC grew its position in South Plains Financial by 0.7% during the fourth quarter. Geode Capital Management LLC now owns 293,340 shares of the company's stock worth $11,384,000 after buying an additional 2,029 shares in the last quarter. Finally, Bridgeway Capital Management LLC grew its position in South Plains Financial by 5.1% during the fourth quarter. Bridgeway Capital Management LLC now owns 181,463 shares of the company's stock worth $7,041,000 after buying an additional 8,749 shares in the last quarter. 54.95% of the stock is owned by institutional investors and hedge funds.

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.

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