--- title: "South Plains Financial | 8-K: FY2026 Q2 Revenue: USD 64.49 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/293030286.md" datetime: "2026-07-17T11:33:48.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293030286.md) - [en](https://longbridge.com/en/news/293030286.md) - [zh-HK](https://longbridge.com/zh-HK/news/293030286.md) --- # South Plains Financial | 8-K: FY2026 Q2 Revenue: USD 64.49 M Revenue: As of FY2026 Q2, the actual value is USD 64.49 M. EPS: As of FY2026 Q2, the actual value is USD 0.96, beating the estimate of USD 0.8225. EBIT: As of FY2026 Q2, the actual value is USD 25.22 M. #### Quarterly Cash Dividend South Plains Financial, Inc. declared a quarterly cash dividend of $0.18 per share on its outstanding common stock, representing a 6% increase from the most recent quarterly cash dividend declared in April 2026. This dividend is scheduled to be paid on August 10, 2026, to shareholders of record as of the close of business on July 27, 2026. #### Net Income Net income for the second quarter of 2026 was $19.0 million, an increase from $14.5 million in the first quarter of 2026 and $14.6 million in the second quarter of 2025. #### Net Interest Income Net interest income reached $50.3 million in the second quarter of 2026, up from $42.9 million in the first quarter of 2026 and $42.5 million in the second quarter of 2025. The $12.4 million increase from the first quarter was largely due to BOH Holdings, Inc.’s $667 million of interest-earning assets. #### Noninterest Income Noninterest income for the second quarter of 2026 was $14.1 million, compared to $11.3 million in the first quarter of 2026 and $12.2 million in the second quarter of 2025. The increase from the first quarter was driven by a $929 thousand increase in mortgage banking revenues and an $894 thousand increase in bank card services and interchange revenue, partially offset by an -$801 thousand loss in a Small Business Investment Company (“SBIC”) investment in the first quarter of 2026. The year-over-year increase was primarily due to a $1.2 million increase in mortgage banking revenues, mainly from a $515 thousand write-up in mortgage servicing rights assets in Q2 2026 compared to a -$156 thousand write-down in Q2 2025. Total revenues for the six months ended June 30, 2026, were $118.6 million, with noninterest income contributing $25.4 million. #### Noninterest Expense Noninterest expense totaled $39.9 million in the second quarter of 2026, up from $35.5 million in the first quarter of 2026 and $33.5 million in the second quarter of 2025. The $4.3 million increase from the first quarter was mainly due to a $2.7 million increase in core operating expenses from a recent acquisition and higher incentive-based compensation. Acquisition-related expenses were approximately $1.1 million in Q2 2026, down from $1.5 million in Q1 2026. The $6.3 million year-over-year increase was largely due to the $2.7 million increase in core operating expenses from the acquisition, annual salary adjustments, and new lender hires, along with $1.1 million in acquisition-related expenses. #### Provision for Credit Losses The Company recorded a provision for credit losses of $350 thousand in the second quarter of 2026, compared to $260 thousand in the first quarter of 2026 and $2.5 million in the second quarter of 2025. The year-over-year decrease was mainly due to activity in Q2 2025, which included increased specific reserves, higher loan balances, and credit quality downgrades. #### Key Financial Ratios - **Return on Average Assets:** 1.44% for Q2 2026, compared to 1.31% for Q1 2026 and 1.34% for Q2 2025. - **Net Interest Margin (tax-equivalent):** 4.00% for Q2 2026, compared to 4.04% for Q1 2026 and 4.07% for Q2 2025. Problem loan interest and fee recoveries impacted NIM by +5 basis points in Q1 2026 ($545 thousand), +6 basis points in Q3 2025 ($640 thousand), and +17 basis points in Q2 2025 ($1.7 million). - **Average Cost of Deposits:** 208 basis points for Q2 2026, 11 basis points higher than Q1 2026 (197 basis points) due to the higher cost of acquired Bank of Houston deposits, and 6 basis points lower than Q2 2025 (214 basis points). - **Tangible Book Value (non-GAAP) per Share:** $29.57 as of June 30, 2026, compared to $29.65 as of March 31, 2026 and $26.70 as of June 30, 2025. - **Efficiency Ratio:** 61.59% for Q2 2026, an improvement from 65.33% for Q1 2026, and compared to 61.11% for Q2 2025. #### Balance Sheet Highlights - **Total Assets:** $5,391,206 thousand as of June 30, 2026, up from $4,646,374 thousand as of March 31, 2026 and $4,363,674 thousand as of June 30, 2025. - **Total Loans Held for Investment (HFI):** $3.77 billion as of June 30, 2026, an increase of $667.3 million from March 31, 2026, with $631.9 million attributable to the BOH acquisition and $35.4 million from organic loan growth. Year-over-year, loans increased by $671.9 million from June 30, 2025. The average yield on loans was 6.81% for Q2 2026, compared to 6.83% for Q1 2026. - **Total Deposits:** $4.64 billion as of June 30, 2026, an increase of $613.0 million from March 31, 2026 and $901.7 million from June 30, 2025. The year-over-year increase included $595.6 million from the BOH acquisition and $288.6 million in organic growth. The increase of $613.0 million from March 31, 2026, was largely due to $595.6 million in deposits from the Bank of Houston acquisition and $17.4 million of organic deposit growth. - **Noninterest-bearing Deposits:** $1.15 billion as of June 30, 2026, representing 24.8% of total deposits. The average deposit account size was approximately $43 thousand. City Bank’s percentage of estimated uninsured or uncollateralized deposits was 29% of total deposits. - **Book Value per Share:** $33.43 at June 30, 2026, up from $30.90 at March 31, 2026, primarily due to the issuance of 2.8 million shares for the BOH acquisition at $41.90 per share and $15.7 million of net income after dividends. - **Tangible Common Equity to Tangible Assets (non-GAAP):** 10.47% at June 30, 2026, remaining essentially flat compared to 10.48% at March 31, 2026. #### Asset Quality - **Nonperforming Assets to Total Assets:** 0.19% as of June 30, 2026, compared to 0.13% as of March 31, 2026 and 0.25% as of June 30, 2025. - **Allowance for Credit Losses to Loans Held for Investment:** 1.41% as of June 30, 2026, compared to 1.44% as of March 31, 2026 and 1.45% as of June 30, 2025. - **Annualized Net Charge-offs:** 0.06% for Q2 2026, compared to 0.04% for Q1 2026 and 0.06% for Q2 2025. - **Classified loans:** Totaled $80.3 million, up from $43.3 million at March 31, 2026, primarily due to BOH acquired loans. - **Nonperforming loans:** Increased by $4.4 million from March 31, 2026, resulting in a ratio of nonperforming loans to total loans of 0.25%. #### Capital Ratios As of June 30, 2026, the consolidated total risk-based capital ratio was 16.53%, the common equity tier 1 risk-based capital ratio was 14.10%, and the tier 1 leverage ratio was 12.20%. The Common Equity Tier 1 Ratio was 11.69%, the Tier 1 Capital to Average Assets Ratio was 10.45%, and the Total Capital to Risk-Weighted Assets Ratio was 13.91%. #### Merger and Acquisition South Plains Financial, Inc. completed the merger of BOH Holdings, Inc. into South Plains, and Bank of Houston into City Bank, effective April 1, 2026. As of March 31, 2026, BOH had total assets of $685.0 million, total loans of $631.9 million, and total deposits of $595.6 million. #### Loan Portfolio Mix (as of June 30, 2026) Total Loans Held for Investment: $3,770.8 million. Commercial C&D: $201.3 million Residential C&D: $282.6 million CRE Owner/Occupied: $538.9 million Other CRE Non Owner/Occupied: $761.4 million Multi-Family: $229.8 million Commercial & Industrial (C&I): $563.3 million Agriculture: $154.6 million 1-4 Family: $714.0 million Auto: $263.8 million Other Consumer: $61.1 million #### Non-Owner Occupied Commercial Real Estate (NOO CRE) NOO CRE represented 39.1% of loans HFI, up from 37.3% at March 31, 2026. The portfolio included $993.5 million of income-producing loans and $481.6 million of construction, acquisition, and development loans. The estimated weighted average LTV of income-producing NOO CRE was 57%. Office NOO CRE loans were 4.9% of loans HFI with a weighted average LTV of 56%. NOO CRE loans past due 90+ days or nonaccrual were 17 basis points of the portfolio. #### Indirect Auto Loans Indirect auto loans increased to $246.7 million on June 30, 2026, from $238.3 million on March 31, 2026. Loans past due 30+ days were 24 basis points of the portfolio. #### Liquidity City Bank had $2.1 billion of available borrowing capacity through the Federal Home Loan Bank of Dallas (FHLB) and the Federal Reserve Bank of Dallas (FRB). No new borrowings were utilized from these sources during Q2 2026, but existing Bank of Houston FHLB borrowings of $15 million were repaid during the quarter. #### Investment Securities Investment securities totaled $555.4 million, a -$47.4 million decrease from Q2 2026. All securities are classified as available for sale, and all municipal bonds are in Texas. The duration of the securities portfolio was 6.27 years at June 30, 2026. #### Outlook / Guidance South Plains Financial, Inc. remains focused on expanding its lending platform in high-growth Texas markets, attracting experienced bankers, and optimizing the Bank of Houston acquisition. The company believes it is well-positioned for continued success with a strong balance sheet, healthy loan pipeline, and exceptional team, and anticipates the BOH merger to be 11% accretive to EPS with tangible book value earnback under 3 years. This transaction is expected to drive improved profitability metrics and enhance long-term shareholder value for South Plains Financial, Inc., with a leadership transition planned for year-end to ensure continuity and growth. ### Related Stocks - [SPFI.US](https://longbridge.com/en/quote/SPFI.US.md) ## Related News & Research - [South Plains Financial Q2 FY26 net income rises 30.14% to $19 million](https://longbridge.com/en/news/295150906.md) - [Algorhythm Holdings to Announce its Financial Results for the Second Quarter of 2026](https://longbridge.com/en/news/295634378.md) - [CitroTech Provides Q2 2026 Business Update in Letter to Shareholders](https://longbridge.com/en/news/295561956.md) - [Brisanet board okays Q2 2026 interim financial statements](https://longbridge.com/en/news/295590194.md) - [Can Gold Make a New High in 2026?](https://longbridge.com/en/news/295569739.md)