South Plains Financial (SPFI) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $14.5 million, up from $12.3 million in Q1 2025 but down from $15.3 million in Q4 2025, with diluted EPS of $0.85 compared to $0.72 last year and $0.90 in Q4 2025.

• Completed the BOH Holdings, Inc. and Bank of Houston acquisition on April 1, 2026, adding $685 million in assets and $596 million in deposits, strengthening Houston market presence.

• Return on average equity (annualized) was 11.81% and return on average assets was 1.31% for Q1 2026.

• Focused on organic growth, strategic lender hires, and disciplined M&A in Texas markets.

• Disciplined balance sheet management and improved credit quality amid an uncertain market backdrop.

Financial highlights

• Net interest income was $42.9 million, nearly flat sequentially but up 11.2% year-over-year; net interest margin rose to 4.04% from 3.81% year-over-year.

• Noninterest income increased to $11.3 million, mainly due to higher mortgage banking revenues.

• Noninterest expense rose to $35.5 million, including $1.5 million in acquisition-related costs.

• Provision for credit losses was $260 thousand, down from $1.8 million in Q4 2025 and $420 thousand in Q1 2025.

• Tangible book value per share was $29.65 at March 31, 2026, up from $26.05 year-over-year.

Outlook and guidance

• Loan growth guidance for 2026 reaffirmed at low to mid-single digits, with expectations to hit the lower end due to anticipated large loan payoffs.

• Management expects continued integration of the BOH acquisition, with anticipated cost savings and operational synergies.

• Deposit growth expected to be flat to down in Q2 due to seasonal outflows, with growth resuming in the second half of 2026.

• Focus remains on organic growth, credit quality, and maintaining strong capital and liquidity positions.

• Management remains confident in long-term value creation despite near-term economic uncertainty and headwinds to loan growth.