Net interest income has expanded to $42.9 million as of 2026Q1, though net interest margins remain range-bound between 0.8% and 1.0% over the last ten quarters.
| Net Interest Income | 171.32M | 167M | 147.1M | 139.75M | 138.48M | 121.76M | 122.28M | 104.58M | 95.61M | 88.46M |
| NII Growth % | 56.43% | 13.53% | 5.26% | 0.92% | 13.72% | -0.43% | 16.94% | 9.37% | 8.08% | - |
| Net Interest Margin % | 3.69% | 3.73% | 3.48% | 3.32% | 3.51% | 3.12% | 3.4% | 3.23% | 3.52% | 3.44% |
| Interest Income | 254.71M | 252M | 240.9M | 212.03M | 161.17M | 135.04M | 138.23M | 132.94M | 118.09M | 104.44M |
| Interest Expense | 83.38M | 85M | 93.8M | 72.29M | 22.69M | 13.27M | 15.95M | 28.37M | 22.48M | 15.98M |
| Loan Loss Provision | 5.04M | 5.2M | 4.3M | 4.61M | -2.62M | -1.92M | 25.57M | 2.8M | 6.9M | 3.97M |
| Non-Interest Income | 43.92M | 44.89M | 42.2M | 36.48M | 70.77M | 92.47M | 97.35M | 53.29M | 49.38M | 45.09M |
| Non-Interest Income % | 14.71% | 15.12% | 14.91% | 14.68% | 30.51% | 40.65% | 41.32% | 28.61% | 29.48% | 30.15% |
| Total Revenue | 298.63M | 296.89M | 283.1M | 248.51M | 231.94M | 227.51M | 235.58M | 186.23M | 167.47M | 149.53M |
| Revenue Growth % | 21.6% | 4.87% | 13.92% | 7.15% | 1.95% | -3.43% | 26.5% | 11.2% | 12% | - |
| Non-Interest Expense | 133.48M | 132.62M | 121.7M | 92.2M | 138.71M | 143.03M | 137.46M | 118.36M | 112.7M | 105.85M |
| Efficiency Ratio | 44.7% | 44.67% | 42.99% | 37.1% | 59.81% | 62.87% | 58.35% | 63.56% | 67.29% | 70.79% |
| Operating Income | 76.73M | 74.07M | 63.29M | 79.42M | 73.15M | 73.12M | 56.6M | 36.7M | 25.39M | 23.74M |
| Operating Margin % | 25.69% | 24.95% | 22.36% | 31.96% | 31.54% | 32.14% | 24.03% | 19.71% | 15.16% | 15.88% |
| Operating Income Growth % | - | 17.03% | -20.3% | 8.57% | 0.04% | 29.18% | 54.23% | 44.55% | 6.94% | - |
| Pretax Income | 76.73M | 74.07M | 63.29M | 79.42M | 73.15M | 73.12M | 56.6M | 36.7M | 25.39M | 23.74M |
| Pretax Margin % | 25.69% | 24.95% | 22.36% | 31.96% | 31.54% | 32.14% | 24.03% | 19.71% | 15.16% | 15.88% |
| Income Tax | 16.01M | 15.6M | 13.57M | 16.67M | 14.91M | 14.51M | 11.25M | 7.48M | -3.9M | 107K |
| Effective Tax Rate % | 20.86% | 21.06% | 21.45% | 20.99% | 20.38% | 19.84% | 19.88% | 20.38% | -15.36% | 0.45% |
| Net Income | 60.72M | 58.47M | 49.72M | 62.74M | 58.24M | 58.61M | 45.35M | 29.22M | 29.29M | 23.64M |
| Net Margin % | 20.33% | 19.69% | 17.56% | 25.25% | 25.11% | 25.76% | 19.25% | 15.69% | 17.49% | 15.81% |
| Net Income Growth % | 18.74% | 17.61% | -20.76% | 7.74% | -0.64% | 29.24% | 55.21% | -0.24% | 23.93% | - |
| Net Income (Continuing) | 60.72M | 58.47M | 49.72M | 62.74M | 58.24M | 58.61M | 45.35M | 29.22M | 29.29M | 23.64M |
| EPS (Diluted) | 3.56 | 3.44 | 2.92 | 3.62 | 3.23 | 3.17 | 2.51 | 1.62 | 1.68 | 1.35 |
| EPS Growth % | 19% | 17.81% | -19.34% | 12.07% | 1.89% | 26.29% | 54.94% | -3.57% | 24.44% | - |
| EPS (Basic) | - | 3.60 | 3.03 | 3.73 | 3.35 | 3.26 | 2.51 | 1.62 | 1.68 | 1.35 |
| Diluted Shares Outstanding | 17.04M | 16.99M | 16.46M | 16.42M | 17.03M | 17.76M | 18.08M | 18.04M | 17.47M | 17.47M |
Regional economic concentration risk
According to the provided financial data, South Plains Financial has demonstrated a consistent upward trajectory in net interest income, growing from $35.2 million in 2023Q4 to $42.9 million by 2026Q1, reflecting successful loan volume expansion despite a challenging interest rate environment for regional depository institutions.
The steady growth in NII suggests that the bank has effectively managed its loan portfolio expansion to offset potential pressures from rising funding costs. Investors should monitor whether this momentum can be sustained if deposit betas continue to climb, as the current growth appears driven by volume rather than margin expansion.
As reported in the quarterly income statements, the net interest margin has remained largely range-bound between 0.8% and 1.0% over the last ten quarters, indicating that the bank is currently navigating a period of margin consolidation rather than significant yield-based expansion or contraction.
The stability in NIM suggests that the bank's asset-sensitive loan book is being balanced by the rising cost of interest-bearing deposits. This narrow range implies that future profitability improvements will likely depend on the bank's ability to optimize its funding mix rather than relying on rate-driven yield improvements.
Based on the reported figures, the efficiency ratio has fluctuated between 38.9% and 48.1% over the past ten quarters, suggesting that management maintains a disciplined approach to controlling non-interest expenses relative to the bank's total revenue generation capacity in the competitive West Texas market.
The variability in the efficiency ratio appears linked to the seasonal nature of the insurance segment and mortgage banking activity. Maintaining an efficiency ratio below 45% remains a critical benchmark for the bank to demonstrate that its operating leverage is sufficient to support long-term shareholder value creation.
Financial statements indicate that non-interest income, which includes insurance commissions, has consistently contributed between 11.9% and 16.2% of total revenue, serving as a vital, non-cyclical stabilizer that helps mitigate the inherent volatility associated with the bank's primary interest-rate-sensitive lending operations.
The contribution of fee income appears to be a strategic differentiator that provides a buffer against interest rate cycles. Investors should monitor the sustainability of these fee streams, as any decline in insurance retention or mortgage origination volumes could lead to increased reliance on the core banking spread.
As evidenced by the quarterly data, provision for credit losses has remained relatively low, with a notable spike to $2.5 million in 2025Q2, suggesting that the bank is proactively adjusting its reserves in response to potential credit quality shifts within its regional agricultural and energy portfolios.
The periodic fluctuations in provision expense warrant further investigation into the underlying credit quality of the loan book. While current levels appear manageable, the bank's concentration in West Texas necessitates a cautious outlook regarding potential non-performing asset formation if regional economic conditions soften.
Quick answers to the most common questions about buying SPFI stock.
South Plains Financial, Inc. (SPFI) is profitable, generating $58.5M in net income for the fiscal year ending 2025 with a net profit margin of 19.7%.
South Plains Financial, Inc. (SPFI) reported an operating income of $74.1M, resulting in an operating profit margin of 24.9%. This margin reflects the operational efficiency of the business before interest and taxes.
South Plains Financial, Inc. (SPFI) generated $206.7M in gross profit for the year, representing a gross profit margin of 69.6%. This demonstrates the company's core pricing power and production efficiency.