South Plains Financial Reports $20.8M Q3 Net Income, CEO Transition

South Plains Financial, Inc. (NASDAQ:SPFI) reported net income of $20.8 million for the third quarter of 2026, an increase from $19.0 million in the second quarter of 2026 and $16.3 million in the third quarter of 2025. The Lubbock, Texas-based bank, parent company of City Bank, disclosed these results on October 22, 2026, alongside the announcement that Chairman and Chief Executive Officer Curtis Griffith is retiring at the end of the year.

Diluted earnings per share rose to $1.06 for the quarter, up from $0.96 in both the preceding quarter and the same period last year. The company’s net interest income reached $51.5 million, compared to $50.3 million in the second quarter of 2026 and $43.0 million in the third quarter of 2025. This growth was driven by an increase in average interest-bearing assets of $53.4 million quarter-over-quarter and the acquisition of BOH Holdings, Inc., which added approximately $667 million in interest-earning assets in the second quarter of 2026.

Loans held for investment totaled $3.83 billion as of September 30, 2026, representing an annualized organic growth rate of 6.3% during the quarter. President Cory Newsom stated that this growth was net of a $25 million early loan payoff fully secured by a borrower’s deposit account. The year-over-year increase in loans was attributed to $631.9 million from the BOH acquisition and organic growth. Deposits stood at $4.66 billion at the end of the quarter.

Griffith said the leadership transition reflects years of planning and expressed confidence in Newsom and the management team to build on the company’s success. He will continue to serve as Chairman. Newsom, who has been appointed as the next Chief Executive Officer, noted that the bank is expanding its lending platform in high-growth Texas markets and sees opportunities to recruit experienced bankers as industry consolidation creates disruption.

Key financial metrics for the third quarter included a net interest margin of 4.00% on a tax-equivalent basis and an average cost of deposits of 207 basis points, down one basis point from the second quarter. Return on average assets was 1.53%. The consolidated total risk-based capital ratio was 16.61%, with a common equity tier 1 risk-based capital ratio of 14.20% and a tier 1 leverage ratio of 12.42%. Tangible book value per share was $29.23 as of September 30, 2026.