South Plains Financial Stock Earnings Reports

South Plains Financial reported solid first-quarter 2026 results with continued profitability, improving credit quality and disciplined balance-sheet management. Key financials: diluted EPS was $0.85 (vs. $0.90 prior quarter); net interest income was $43.0 million and tax-equivalent NIM was 4.04%; loans held for investment fell $41 million to $3.1 billion (driven by expected multifamily payoffs and seasonal ag paydowns) while unfunded loan commitments increased (largely construction). Deposits rose $154 million (4%) to $4.03 billion; cost of deposits declined to 1.97%. Allowance for credit losses to loans was 1.44%; provision for credit losses was modest at $0.26 million. Noninterest income was $11.3 million (mortgage banking strength offset by an SBIC loss); noninterest expense increased to $35.5 million driven by personnel and $1.5 million of acquisition-related costs. The Bank of Houston (BOH) merger closed April 1; BOH pro forma metrics at 3/31: ~$632M loans, ~$596M deposits, BOH NIM ~3.9% and deposit cost ~3.42%. Pro forma combined cost of deposits was ~210 bps and NIM ~4.02%. Management expects the BOH deal to be accretive (11% EPS accretion in 2027) with tangible book value earn-back in under 3 years. Board authorized a $0.17 quarterly dividend (28th consecutive). Guidance/strategy highlights: management remains cautious near term given macro/inflation risks and potential Fed rate impacts, but optimistic on Texas long-term fundamentals; continues to pursue disciplined organic growth through targeted lender hires and selective, disciplined M&A; expects loan growth for 2026 in the mid- to high-single-digit range but now leaning toward the lower end of that range, and anticipates deposit seasonality with some second-quarter outflows. Risks and near-term headwinds: multifamily payoffs pressuring loan balances, inflation/energy-driven rate dynamics that could limit Fed cuts and constrain margin and loan growth, and integration/optimization of BOH funding mix (opportunity to reduce higher-cost, noncore deposits over time).