South Plains Financial reported strong 2025 results, including a 17.8% rise in diluted EPS and a tangible book value per share growth of over 14%. They anticipate loan growth acceleration in 2026 and the pending acquisition of BOH Holdings to add scale in Houston. The company expects the acquisition to be 11% accretive to earnings in 2027.

Executives highlighted full-year earnings growth and net interest margin expansion during the fourth-quarter 2025 earnings call. Loan growth, NIM expansion, and progress on strategic initiatives were discussed, with a focus on accelerating loan growth in 2026 and the pending acquisition of Bank of Houston.

Fourth-quarter diluted EPS was down from the linked quarter, attributed to a larger provision for credit losses. Net interest income remained essentially unchanged. NIM expansion slowed in the fourth quarter, excluding one-time items from the previous quarters.

Loans held for investment increased in the fourth quarter, driven by growth in various sectors. Loan yields decreased in the fourth quarter compared to the linked quarter, excluding one-time items. Management expects loan yields to moderate in the coming quarters.

Management reiterated expectations for mid- to high-single-digit loan growth in 2026. They have completed about 50% of expected lender hiring and reported loan growth momentum in major metropolitan markets. Potential headwinds from multifamily payoffs are expected in Q1 2026.

Executives discussed the balance between loan growth and NIM stability in 2026, aiming to maintain NIM at current levels. Deposit cost management is crucial for protecting margin. Deposit growth and cost of deposits were stable in the fourth quarter.

South Plains Financial emphasized strategic alignment in the acquisition of Bank of Houston, projecting significant scale in Houston. The combined company is expected to have over $1 billion in loans in the Houston region. Revenue synergies may include expanding product offerings.

South Plains Financial believes it has the capacity for additional acquisitions. The allowance for credit losses remained stable in Q4, with a provision increase tied to loan growth. Non-interest income and expenses remained relatively stable.

Tangible common equity to tangible assets increased in the fourth quarter, and the board authorized a quarterly dividend. The company plans to maintain its share repurchase program. South Plains Financial operates as a full-service commercial bank, providing a range of banking solutions.

Read more at Yahoo Finance: South Plains Financial Q4 Earnings Call Highlights