South Plains Financial's Q4 net income declines

Overview

• Texas bank holding company's Q4 net income fell from Q3 and year-ago

• Diluted EPS for Q4 was $0.90, down from Q3 and last year

Outlook

• South Plains expects loan growth to accelerate to mid-to-high single digits in 2026

• Company plans to acquire more banks similar in size to BOH Holdings

Result Drivers

• INTEREST INCOME DECLINE - Interest income decreased by $1.1 mln from Q3 2025, mainly due to lower loan interest income and reduced short-term interest rates

• MORTGAGE BANKING REVENUE - Noninterest income fell due to a $2.6 mln decrease in mortgage banking revenues, impacted by lower mortgage loan originations and fair value adjustments

• INTEREST EXPENSE REDUCTION - Interest expense decreased by $1.0 mln from Q3 2025, driven by lower costs of interest-bearing deposits and subordinated debt redemption

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for South Plains Financial Inc is $44.00, about 7.3% above its January 23 closing price of $40.99

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX10pHTM

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