SPFI

This article first appeared on GuruFocus. - Net Income: $20.8 million in Q3 2026, up from $19 million in Q2 2026. - Diluted EPS: $1.06 in Q3 2026, compared to $0.96 in the linked quarter (near-record). - Return on Average Assets: Improved to 1.53%. - Efficiency Ratio: Improved to 58.1% from 61.6% in the linked quarter. - Net Interest Income: $51.5 million, up $1.1 million from the linked quarter. - Net Interest Margin (tax-equivalent): Stable at 4.00%. - Loans Held for Investment: $3.83 billion, up ~$60 million (6.3% annualized organic growth); full-year growth guidance mid-single digits. - Loan Yield: 6.75%, down from 6.81% in Q2 2026. - Metro Market Loans (Dallas, Houston, El Paso): $1.71 billion, up ~$23 million; 44.6% of total loan portfolio. - Non-Interest Income: $13.8 million, down from $14.1 million in Q2 2026; 21% of bank revenues. - Mortgage Banking Revenue: $4.9 million, including a $1.6 million MSR valuation increase. - Deposits: $4.66 billion, up $20 million from the linked quarter. - Non-Interest-Bearing Deposits: $1.18 billion, or 25.3% of total deposits (up from 24.8% at June 30). - Cost of Deposits: 207 basis points, down 1 bp from the linked quarter. - Allowance for Credit Losses / Total Loans: 1.38%, down from 1.41% in the prior quarter. - Provision for Credit Losses (Loans): $1 million, driven by organic loan growth and net charge-offs. - Non-Performing Loans: 40 basis points of total loans; modest increase tied to Bank of Houston-acquired loans. - Non-Interest Expense: $38.1 million, down $1.8 million from the linked quarter. - Tangible Common Equity / Tangible Assets: 10.32%. - Common Equity Tier 1 Ratio: 14.2%. - Tangible Book Value per Share: $29.23, down from $29.60 at June 30 (AOCI decline of $25.5 million, partly offset by $17.4 million net income after dividends). - Dividend: 30th consecutive quarterly dividend announced for Q4 2026. - Warning! GuruFocus has detected 7 Warning Signs with SPFI. - Is SPFI fairly valued? Test your thesis with our free DCF calculator. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Net income increased to $20.8 million and diluted EPS rose to $1.06, up from $0.96 in the prior quarter. - Return on average assets improved to 1.53% and the efficiency ratio improved to 58.1%. - Loans held for investment grew by $60 million, or 6.3% annualized, to $3.83 billion, driven by healthy loan production. - Net interest margin remained stable at 4.00% on a tax-equivalent basis. - Nonperforming loans remained low at 40 basis points of total loans, and the largest credit has already returned to performing status. - Loan yield declined to 6.75% from 6.81% in the prior quarter. - Non-interest income decreased to $13.8 million from $14.1 million, due to lower bank-card services and interchange revenue. - Nonperforming loans increased during the quarter, primarily due to Bank of Houston-acquired loans. - Tangible book value per share declined to $29.23 from $29.60, driven by a $25.5 million decrease in accumulated other comprehensive income. - The company expects non-interest expenses to increase in 2027 as it continues to invest in growth and new hires. Q: With the margin holding stable at 4% and deposit costs improving, how should we think about the net interest margin from here, and are there more higher-cost funding sources you plan to let run off?A: CFO Steve Crockett said management was pleased with the stable margin, helped by loan growth putting excess liquidity to work. The bank continues to manage overall deposits, pushing out non-core funding it doesn't need, and expects the NIM to stay in a fairly close range up or down a few basis points. Chief Credit Officer Brent Bates added that new loan production is pricing in the upper-6% range, with rates ticking up late in the quarter. Q: Loan growth was strong at 6.3% annualized despite two large pay-offs. How has the pipeline developed, and can you sustain mid-single-digit growth into 2027 or potentially accelerate?A: Brent Bates said the pipeline in the second half has been much stronger than the first, with a very healthy backlog of new originations and construction funding, giving him confidence in hitting the full-year growth projection. He noted metro markets now represent nearly half or more of the total pipeline versus roughly a third in prior years. CEO Cory Newsom attributed the momentum to existing talent, recent hires, and the Bank of Houston acquisition coming to fruition. Q: Non-performing loans ticked up in the quarter. What drove the increase, and were these Bank of Houston-originated credits?A: Brent Bates said the migration was driven by a few acquired loans, and the bank has been actively working remediation plans the largest credit has already returned to performing. CFO Steve Crockett noted these were already classified loans that simply moved a step so the team could work on them. Cory Newsom added that the largest one missed returning to performing by about a week due to timing. Q: Given the recent hires in Lubbock and College Station and the $875,000 retirement accrual rolling off, how should we model the expense base from here?A: Steve Crockett said fourth-quarter expenses should be down a little, all else equal, including the retirement accrual coming off, though there are always new items as the calendar turns. He expects dollar non-interest expense to start rising again in 2027, partly depending on new hires. Cory Newsom said the bank remains as focused as ever on hiring talent and is in the midst of it now, while Chief Banking Officer Tyler Haynes noted some hires are a "long game" of cultivating relationships until the timing is right. Q: Have you considered selling some of the auto portfolio to redeploy capital into commercial lending, given industry players exiting auto?A: Cory Newsom said no the bank likes this business and is very careful about what it puts on the books, with ample liquidity and a strong capital position. Steve Crockett noted roughly 90% of the portfolio is super-prime and prime, providing good diversification and weathering cycles better. Brent Bates added that credit quality has been exceptional and the short duration means the portfolio churns and provides a good revenue source. Newsom noted over 99% of the portfolio is cars, not recreational assets, with clean past-due levels. Q: Where do you want the loan-to-deposit ratio to go, and how are you thinking about the securities portfolio to maximize profitability?A: Steve Crockett said the target is roughly 85%, acknowledging it can vary by time of year. On securities, the bank has recently bought a little to offset paydowns but doesn't want the portfolio to run down too much further because it is used for pledging public-fund deposits, and it wants to stay relatively short overall. Cory Newsom agreed the bank is heavily focused on staying around an 85% loan-to-deposit ratio while balancing credit quality. Q: How are new loan spreads holding up versus deposit costs, and how would the NIM fare against another couple of 25 basis point rate hikes?A: Steve Crockett said the balance sheet has been pretty neutral to rate moves over the past couple of years, so even a 25 or 50 basis point increase wouldn't have a big overall effect. He acknowledged some deposit rates CDs and money markets are back in the mid-4% range, which doesn't work well against upper-6% new loan yields in the short term, but he feels good about the overall portfolio. Cory Newsom emphasized the bank's exception-based pricing approach and giving teams authority to make decisions to counteract pressure. Q: Are there any other sizable loan pay-offs anticipated over the next couple of quarters that we should factor in?A: Brent Bates said pay-offs have become something the bank bakes into its thinking, and more are likely in the fourth quarter, which he has factored into his confidence in hitting year-end targets. Cory Newsom stressed the two pay-offs called out were not surprising and reiterated that the bank is no longer in a position of trying to exit relationships it feels good about portfolio quality and likes what it has. Q: How much remains of the Bank of Houston cost savings, and when will they be fully reflected in the run rate?A: Steve Crockett said pretty much everything is in place now, with the bulk of the savings realized in the second quarter and some still running through the third quarter. Cory Newsom credited the team for moving quickly on the system conversion. Q: With Curtis Griffith retiring as CEO at year end, how is the leadership transition structured?A: Curtis Griffith said the transition has been planned for many years, with Cory Newsom and Steve Crockett leading day-to-day operations for quite some time. He will remain Chairman of both South Plains and City Bank, focusing on long-term strategy alongside the boards and management. Newsom said he is honored to step into the CEO role and looks forward to Griffith's support as Chairman while executing the strategy of expanding the lending platform across high-growth Texas markets and pursuing disciplined acquisitions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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 to 4.00% for the second quarter of 2026 and 4.05% for the third quarter of 2025. - Return on average assets for the third quarter of 2026 was 1.53%, compared to 1.44% for the second quarter of 2026 and 1.47% 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%, and 12.42%, 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 6.3% during the quarter, consistent with our expectations. We believe our loan pipeline remains healthy, and we continue to see opportunities to recruit experienced bankers as industry consolidation creates disruption across our markets. With a strong balance sheet, stable profitability and attractive returns, we believe we are well positioned to continue growing the South Plains franchise, enhancing the long-term earning power of the Bank and creating value for our shareholders." Results of Operations, Quarter Ended September 30, 2026 Net Interest Income Net interest income was $51.5 million for the third quarter of 2026, compared to $50.3 million for the second quarter of 2026 and $43.0 million for the third quarter of 2025. Net interest margin, calculated on a tax-equivalent basis, was 4.00% for the third quarter of 2026, compared to 4.00% for the second quarter of 2026 and 4.05% for the third quarter of 2025. The average yield on loans was 6.75% for the third quarter of 2026, compared to 6.81% for the second quarter of 2026 and 6.92% for the third quarter of 2025. The average cost of deposits was 207 basis points for the third quarter of 2026, which is 1 basis point lower than the second quarter of 2026 and 3 basis points lower than the third quarter of 2025. Interest income was $76.4 million for the third quarter of 2026, compared to $75.0 million for the second quarter of 2026 and $64.5 million for the third quarter of 2025. Interest income in the third quarter of 2026 increased $1.4 million compared to the second quarter of 2026 and increased $11.9 million compared to the third quarter of 2025. The $1.4 million quarterly increase was mainly due to an increase of $53.4 million in average interest-bearing assets, while the year-over-year increase of $11.9 million was primarily due to the acquisition of BOH Holdings, Inc.'s ("BOH") approximately $667 million of interest-earning assets in the second quarter of 2026 along with organic growth. Interest expense was $24.9 million for the third quarter of 2026, compared to $24.7 million for the second quarter of 2026 and $21.5 million for the third quarter of 2025. Interest expense in the third quarter of 2026 increased $295 thousand compared to the second quarter of 2026 and increased $3.4 million compared to the third quarter of 2025. The year-over-year increase of $3.4 million was mainly attributable to the acquisition of BOH's approximately $611 million of interest-bearing liabilities during the second quarter of 2026 along with organic growth. Noninterest Income and Noninterest Expense Noninterest income was $13.8 million for the third quarter of 2026, compared to $14.1 million for the second quarter of 2026 and $11.2 million for the third quarter of 2025. The decrease from the second quarter of 2026 was primarily due to a decrease of $568 thousand in bank card services and interchange revenue, mainly as a result of incentives received during the second quarter of 2026. The increase in noninterest income for the third quarter of 2026 as compared to the third quarter of 2025 was primarily due to an increase of $2.3 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 $1.6 million in the third quarter of 2026 compared to a write-down of $925 thousand in the third quarter of 2025 – based on market interest rate changes during the respective quarters. Noninterest expense was $38.1 million for the third quarter of 2026, compared to $39.9 million for the second quarter of 2026 and $33.0 million for the third quarter of 2025. The $1.8 million decrease from the second quarter of 2026 was primarily the result of a decrease of $1.1 million in personnel expenses, mainly as a result of $710 thousand of acquisition-related expenses in the second quarter and a decline of $326 thousand in mortgage commissions during the third quarter. There was also a decline in other noninterest expenses of $596 thousand, mainly due to $343 thousand in acquisition-related expenses in the second quarter of 2026. The $5.1 million increase in noninterest expense for the third quarter of 2026 as compared to the third quarter of 2025 was largely the result of an increase in core operating expenses from the BOH acquisition of approximately $2.5 million and annual salary adjustments. Loan Portfolio and Composition Loans held for investment were $3.83 billion as of September 30, 2026, compared to $3.77 billion as of June 30, 2026 and $3.05 billion as of September 30, 2025. The increase of $59.7 million, or 6.3% annualized, during the third quarter of 2026 as compared to the second quarter of 2026 occurred as a result of organic loan growth during the quarter. The organic growth was net of one early loan payoff of $25 million during the quarter, which was fully secured by the borrower's deposit account. As of September 30, 2026, loans held for investment increased $777.6 million as compared to September 30, 2025, as a result of BOH acquisition-related growth of $631.9 million and organic growth during the period. Deposits and Borrowings Deposits totaled $4.66 billion as of September 30, 2026, compared to $4.64 billion as of June 30, 2026 and $3.88 billion as of September 30, 2025. Deposits increased by $20.1 million in the third quarter of 2026 from June 30, 2026. Deposits increased by $779.5 million at September 30, 2026 as compared to September 30, 2025. Noninterest-bearing deposits were $1.18 billion as of September 30, 2026, compared to $1.15 billion as of June 30, 2026 and $1.0 billion as of September 30, 2025. Noninterest-bearing deposits represented 25.3% of total deposits as of September 30, 2026. The year-over-year change in total deposits was due to $595.6 million in deposits acquired through the BOH acquisition and organic growth broadly across the deposit portfolio during the period. Asset Quality The Company recorded a provision for credit losses in the third quarter of 2026 of $830 thousand, compared to $350 thousand in the second quarter of 2026 and $500 thousand in the third quarter of 2025. The increase in provision for both comparisons was largely attributable to activity in the third quarter of 2026 which included higher net charge-offs and increased loan balances. The ratio of allowance for credit losses to loans held for investment was 1.38% as of September 30, 2026, compared to 1.41% as of June 30, 2026 and 1.45% as of September 30, 2025. The ratio of nonperforming assets to total assets was 0.31% as of September 30, 2026, compared to 0.19% as of June 30, 2026 and 0.26% as of September 30, 2025. Annualized net charge-offs were 0.13% for the third quarter of 2026, compared to 0.06% for the second quarter of 2026 and 0.16% for the third quarter of 2025. Capital Book value per share decreased to $33.04 at September 30, 2026, compared to $33.43 at June 30, 2026. The change was primarily driven by a decrease in accumulated other comprehensive income ("AOCI") of $25.5 million, partially offset by $17.4 million of net income after dividends paid during the third quarter of 2026. The decrease in AOCI was attributed to the after-tax decrease in fair value of our securities available for sale, net of fair value hedges, as a result of increases in long-term market interest rates during the period. The ratio of tangible common equity to tangible assets (non-GAAP) declined 16 basis points to 10.32% at September 30, 2026. 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 | [email protected] 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 |

South Plains Financial (SPFI) came out with quarterly earnings of $1.06 per share, beating the Zacks Consensus Estimate of $0.97 per share. This compares to earnings of $0.96 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.28%. A quarter ago, it was expected that this company would post earnings of $0.86 per share when it actually produced earnings of $0.96, delivering a surprise of +11.63%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. South Plains Financial, which belongs to the Zacks Banks - Southeast industry, posted revenues of $65.27 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 1.35%. This compares to year-ago revenues of $54.18 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. South Plains Financial shares have added about 11.9% since the beginning of the year versus the S&P 500's gain of 13.3%. While South Plains Financial has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for South Plains Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.98 on $64.35 million in revenues for the coming quarter and $3.77 on $247.65 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Mechanics Bank (MCHB), is yet to report results for the quarter ended September 2026. The results are expected to be released on October 28. This real estate lender is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of +3.9%. The consensus EPS estimate for the quarter has been revised 5.6% higher over the last 30 days to the current level. Mechanics Bank's revenues are expected to be $196.55 million, down 23.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report South Plains Financial, Inc. (SPFI) : Free Stock Analysis Report Mechanics Bancorp (MCHB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Interested in South Plains Financial, Inc.? Here are five stocks we like better. - Third-quarter results improved: Net income rose to $20.8 million, or $1.06 per diluted share, while net interest margin held steady at 4% and the efficiency ratio improved to 58.1%. - Loan growth remained solid: Loans held for investment increased about $60 million, or 6.3% annualized, despite large payoffs. Management reaffirmed its expectation for mid-single-digit loan growth for the full year, with growing opportunities in major Texas markets. - Leadership transition is planned: CEO and Chairman Curtis Griffith will retire as CEO at year-end and remain chairman, with President Cory Newsom succeeding him. Management also highlighted strong capital and credit metrics while maintaining a focus on prudent growth and selective acquisitions. South Plains Financial (NASDAQ:SPFI) reported higher third-quarter earnings as organic loan growth, stable net interest margin and lower acquisition-related expenses supported results. The company also outlined a planned leadership transition, with Chairman and Chief Executive Officer Curtis Griffith set to retire as CEO at year-end while remaining chairman of South Plains and City Bank. President Cory Newsom, who will become CEO at year-end, said the transition has been planned for years and that the existing management team has been leading day-to-day operations. Griffith said the company has built a relationship-driven franchise and expressed confidence in its balance sheet, growth opportunities and leadership team. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over "The strong results we delivered during the third quarter, including near record earnings per share, stable profitability, and solid organic loan growth, reinforce that confidence," Griffith said. South Plains reported net income of $20.8 million in the third quarter, compared with $19 million in the second quarter. Diluted earnings per share rose to $1.06 from $0.96 in the linked quarter. Return on average assets improved to 1.53%, while the efficiency ratio declined to 58.1% from 61.6%. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? Chief Financial Officer and Treasurer Steve Crockett said the earnings increase reflected organic loan growth before two large loan payoffs, stable margin performance and lower expenses related to the company's acquisition of Bank of Houston. Results also included approximately $875,000 of accrued expense related to Griffith's retirement, most of which has now been recognized, he said. Net interest income increased $1.1 million from the second quarter to $51.5 million, primarily reflecting a $53 million increase in average interest-earning assets. Tax-equivalent net interest margin held steady at 4%. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price Management said it is focused on maintaining margin near current levels while growing the balance sheet. Crockett told analysts that the company's balance sheet is generally neutral to changes in interest rates, although new loan pricing and higher-rate deposits can create short-term pressure. Brent Bates, City Bank's chief credit officer, said new loan originations were generally priced in the upper 6% range late in the quarter. South Plains' overall loan yield was 6.75%, compared with 6.81% in the prior quarter. Loans held for investment increased about $60 million during the quarter to $3.83 billion, representing 6.3% annualized organic growth. The increase occurred despite the early payoff of a $25 million loan secured by the borrower's deposit account and another anticipated large relationship payoff. Newsom said the company's loan pipeline and customer demand remained healthy across metropolitan and community markets. Management reaffirmed its expectation for full-year loan growth in the mid-single digits. Loans in Dallas, Houston and El Paso rose approximately $23 million to $1.71 billion and represented 44.6% of the portfolio at Sept. 30. Bates said metropolitan markets now account for nearly half of the company's overall pipeline, compared with roughly one-third in prior years. South Plains said its Houston bankers are turning more attention toward business development following the completion of Bank of Houston integration, system conversion and employee training activities. Newsom said the combined organization has greater lending capacity and liquidity and can pursue opportunities that may previously have been constrained. The company also added experienced bankers in Lubbock and College Station during the quarter. Management said consolidation among Texas banks has created recruiting opportunities, though Newsom said South Plains is selective in adding bankers and seeks candidates who fit its culture and relationship-based model. South Plains continues to view acquisitions as part of its long-term strategy, but Newsom said any transaction must meet the company's cultural, credit and financial standards. He said the company is not seeking growth solely for its own sake. Deposits increased $20 million from the second quarter to $4.66 billion. Noninterest-bearing deposits rose to $1.18 billion, representing 25.3% of total deposits, up from 24.8% at June 30. The $25 million CD-secured loan payoff resulted in the liquidation of the related deposit collateral, which Crockett said should benefit net interest margin. The company also allowed some higher-cost, non-core funding to leave the bank while generating core customer deposit growth. Cost of deposits declined 1 basis point from the prior quarter to 2.07%. Noninterest expense declined $1.8 million sequentially to $38.1 million, reflecting lower personnel costs, lower mortgage commissions and the absence of most Bank of Houston acquisition expenses. Crockett said the bulk of expected Bank of Houston cost savings was implemented in the second quarter and carried into the third quarter. Management indicated expenses could decline somewhat in the fourth quarter, including the removal of retirement-related costs, but may rise in dollar terms during 2027 as the company adds personnel and invests in growth. Crockett said he would not expect noninterest expense to increase as a percentage of revenue. South Plains ended the quarter with tangible common equity to tangible assets of 10.32% and a Common Equity Tier 1 ratio of 14.2%. Tangible book value per share was $29.23 at Sept. 30, down from $29.60 at June 30, largely due to a $25.5 million decline in accumulated other comprehensive income as interest rates rose. The company said it had announced its 30th consecutive quarterly dividend, to be paid in the fourth quarter. The allowance for credit losses was 1.38% of total loans at quarter-end, compared with 1.41% in the prior quarter. South Plains recorded a $1 million provision for credit losses, primarily related to loan growth and net charge-offs. Nonperforming loans increased to 40 basis points of total loans, primarily because of Bank of Houston acquired loans. Bates said the credits that migrated to nonperforming status were already classified at the time of the acquisition and were being addressed through remediation plans. He added that the largest such credit had returned to performing status after quarter-end. Management said it remains comfortable with the quality of its portfolio and is no longer in a position of seeking to exit relationships that do not fit its strategy. The company also said it intends to retain its indirect auto lending business, citing its focus on prime and super-prime borrowers, short portfolio duration and credit performance. Bates said roughly 90% of the portfolio is prime and super-prime, while Newsom said more than 99% of the portfolio consists of automobile loans rather than recreational lending. Looking ahead, management said it would prefer to maintain a loan-to-deposit ratio near 85%. The company has allowed its securities portfolio to decline but has recently purchased some securities to offset paydowns and preserve collateral available for public-fund deposits. Crockett said South Plains does not intend to materially increase securities holdings and continues to prioritize prudent loan growth. South Plains Financial, Inc is a bank holding company headquartered in Lubbock, Texas. Through its principal subsidiary, City Bank, the company provides banking and financial services to individuals, businesses, agricultural customers and other organizations. City Bank offers a range of products and services, including checking and savings accounts, certificates of deposit, consumer loans, commercial and industrial lending, agricultural loans, real estate financing, mortgage lending, wealth management and treasury management services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What South Plains Financial (SPFI) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

For the quarter ended September 2026, South Plains Financial (SPFI) reported revenue of $65.27 million, up 20.5% over the same period last year. EPS came in at $1.06, compared to $0.96 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $64.4 million, representing a surprise of +1.35%. The company delivered an EPS surprise of +9.28%, with the consensus EPS estimate being $0.97. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how South Plains Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Total Nonperforming Assets: $16.77 million compared to the $10.33 million average estimate based on two analysts. - Efficiency ratio: 58.1% versus the two-analyst average estimate of 59.9%. - Nonperforming Loans: $15.31 million compared to the $9.6 million average estimate based on two analysts. - Net charge-offs (recoveries) to average loans outstanding (annualized): 0.1% compared to the 0.1% average estimate based on two analysts. - Net Interest Margin (FTE): 4% versus 4% estimated by two analysts on average. - Average Balance - Total interest-earning assets: $5.13 billion versus $5.11 billion estimated by two analysts on average. - Net Interest Income: $51.46 million versus the two-analyst average estimate of $51.46 million. - Net Interest Income (FTE): $51.69 million versus the two-analyst average estimate of $51.58 million. - Total Noninterest Income: $13.81 million versus $12.84 million estimated by two analysts on average. View all Key Company Metrics for South Plains Financial here>>> Shares of South Plains Financial have returned +0.7% over the past month versus the Zacks S&P 500 composite's no change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report South Plains Financial, Inc. (SPFI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

First Bancorp (FBNC) came out with quarterly earnings of $1.24 per share, beating the Zacks Consensus Estimate of $1.18 per share. This compares to earnings of $1.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.09%. A quarter ago, it was expected that this bank holding company for First Bank would post earnings of $1.15 per share when it actually produced earnings of $1.22, delivering a surprise of +6.09%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. First Bancorp, which belongs to the Zacks Banks - Southeast industry, posted revenues of $129.91 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.51%. This compares to year-ago revenues of $117.51 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. First Bancorp shares have added about 21.2% since the beginning of the year versus the S&P 500's gain of 12.7%. While First Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for First Bancorp was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.19 on $131.64 million in revenues for the coming quarter and $4.72 on $510.68 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. South Plains Financial (SPFI), another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 22. This company is expected to post quarterly earnings of $0.97 per share in its upcoming report, which represents a year-over-year change of +1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. South Plains Financial's revenues are expected to be $64.4 million, up 18.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Bancorp (FBNC) : Free Stock Analysis Report South Plains Financial, Inc. (SPFI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the quarter's performance to the successful integration of the Bank of Houston (BOH), which significantly expanded the asset base to approximately $5.4 billion. The leadership transition plan is progressing with Cory Newsom set to succeed Curtis Griffith as CEO on January 1, 2027, ensuring continuity of the bank's relationship-centered culture. Performance was bolstered by resilient profitability and a stable net interest margin, supported by higher-than-expected deposit performance despite seasonal headwinds. Strategic positioning remains focused on high-growth Texas markets, leveraging a talented lending team to drive organic growth while maintaining a conservative credit culture. The bank is actively evaluating the acquired BOH balance sheet to exit higher-cost funding sources and non-core relationships that do not align with long-term profitability goals. Market dynamics in Texas remain healthy, though management maintains a cautious stance due to elevated interest rates and persistent inflationary pressures. Management remains confident in delivering full-year organic loan growth in the mid-single digits, supported by a strong commercial pipeline and increased banker headcount. Guidance assumes that elevated loan paydowns will continue to act as a headwind to overall growth in future periods. The bank expects moderate deposit growth in the second half of the year, starting from a relatively higher base than in previous years. Profitability targets rely on the ability to reduce higher-cost brokered deposits and non-core funding as they mature to maintain the net interest margin. Future M&A remains a strategic pillar, though management emphasizes a highly disciplined approach that prioritizes cultural fit and strict financial criteria over growth for growth's sake. The quarter included approximately $1.1 million in acquisition-related expenses, which management expects to be largely behind the company starting in the third quarter. An uptick in classified and non-performing loans was noted, primarily stemming from the acquired BOH portfolio, which was anticipated during the due diligence process. The CEO's recent stock sale was clarified as part of a long-term estate planning strategy and to fund personal agricultural business investments, rather than a reflection of outlook. The Board authorized a 6% increase to the quarterly dividend, marking the 29th consecutive dividend payment and reflecting a strong capital position. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management has already paid off BOH's Federal Home Loan Bank borrowings and plans to let high-cost brokered CDs roll off as they mature. The goal is to bring BOH's cost of funds in line with South Plains' historical costs, which should help maintain the net interest margin around the 4% range. Recent paydowns were described as normal course of business, often driven by clients selling assets to realize gains. Management believes the increased production capacity from new hires and a building pipeline will be sufficient to overcome these paydown headwinds. Non-interest expenses are expected to decline in the third quarter as conversion and acquisition-related costs subside. The early conversion in May allowed the bank to begin realizing cost synergies faster than originally anticipated. Management has already begun deploying treasury management and other service offerings to the legacy BOH customer base. A more meaningful uptick in non-interest income from these cross-sell efforts is expected to manifest in the fourth quarter results.