South Plains Financial Reports $14.5 Million Net Income in Q1 2026, Acquires BOH Holdings

South Plains Financial, Inc. (SPFI) reported a net income of $14.5 million, or $0.85 per diluted share, for the first quarter of 2026, marking a 18.2% increase from the $12.3 million, or $0.72 per diluted share, recorded in the same period last year. The company's return on average equity rose to 11.81% from 11.30%, while return on average assets improved to 1.31% from 1.16%. This growth in profitability was primarily driven by a $4.3 million increase in net interest income, which reached $42.9 million, alongside a $670,000 rise in noninterest income, totaling $11.3 million.

In terms of financial position, SPFI's total assets increased by $165.9 million, or 3.7%, to $4.65 billion as of March 31, 2026, compared to $4.48 billion at the end of 2025. Total deposits also saw a significant rise, increasing by $153.5 million, or 4.0%, to $4.03 billion. However, loans held for investment decreased by $41.0 million, or 1.3%, to $3.10 billion, attributed mainly to declines in multi-family and seasonal agricultural loans, offset by growth in commercial land development loans.

Strategically, SPFI completed the acquisition of BOH Holdings, Inc. on April 1, 2026, which added approximately $685 million in assets and $595.6 million in deposits to its balance sheet. This merger is expected to enhance SPFI's market presence and operational capabilities. The company also declared a cash dividend of $0.17 per share, payable on May 11, 2026, reflecting its commitment to returning value to shareholders.

Operationally, SPFI's allowance for credit losses on loans decreased slightly to $44.8 million from $45.1 million, with net charge-offs totaling $309,000 for the quarter. The company maintained a strong capital position, with total stockholders' equity rising to $504.9 million, up from $493.8 million at the end of 2025. SPFI's capital ratios remained well above regulatory requirements, indicating a solid foundation for future growth and stability.

Looking ahead, SPFI anticipates continued growth driven by the integration of BOH Holdings and ongoing efforts to enhance its loan and deposit offerings. The company remains vigilant in monitoring credit quality and market conditions, particularly in light of potential economic fluctuations and interest rate changes.