South Plains Financial: 3 Key Takeaways for Long-Term Investors
Key Points
Net income rose to $20.8 million in the third quarter.
Organic loans grew 6.3% annualized to $3.83 billion.
Total deposits reached $4.66 billion as deposit costs declined.
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On its third-quarter 2026 earnings call, held on Oct. 22, 2026, South Plains Financial (NASDAQ:SPFI) announced net income of $20.8 million, up from $19 million in the prior quarter. Steady loan expansion and disciplined deposit pricing protect long-term earning power across competitive Texas markets. Three takeaways from the call stand out.
1. Organic Loan Growth Accelerates Across Major Metropolitan Markets
Annualized organic loan growth reached 6.3% during the quarter, expanding the balance sheet to $3.83 billion in total loans. Expanding market share in Dallas, Houston, and El Paso offset the early payoff of a $25 million deposit-secured loan.
The fact that we were able to deliver this level of growth despite these payoffs reflects the strength of our underlying loan pipeline and customer demand.
-- Cory T. Newsom, President
2. Bank of Houston Integration Frees Lenders for Business Development
Management completed system conversions and employee training following the acquisition of Bank of Houston. Commercial lenders now direct their energy toward capturing market share across key Texas metro hubs.
With those efforts now largely behind us, our Houston bankers are now able to focus more fully on business development and growth opportunities available in 1 of the most attractive banking markets in Texas.
-- Cory T. Newsom, President
3. Disciplined Funding Management Maintains Net Interest Margin Stability
Net interest margin on a tax-equivalent basis, which measures net yield on earning assets, held steady at 4%. The cost of deposits improved by 1 basis point to 2.07% as management allowed higher-cost, non-core funds to exit.
Looking Ahead
Loan pipelines are accelerating in the second half of the year, driving volume across metropolitan markets. Management relies on recruiting commercial lenders from consolidated competitors while maintaining strict underwriting standards.
We have a strong balance sheet and experienced leadership team and meaningful opportunities to continue growing across our markets.
-- Curtis C. Griffith, Chairman and Chief Executive Officer
Capital allocation remains focused on supporting organic loan originations, sustaining consecutive quarterly dividends, and evaluating selective bank acquisitions that meet strict financial hurdles.
Importantly, we will remain disciplined in our approach if any potential transaction must align with our culture, community banking model, credit standards, and financial objectives.
-- Cory T. Newsom, President
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