South Plains Financial reported net income of $19.0 million for the second quarter of 2026, with diluted earnings per share rising to $0.96, beating the analyst consensus estimate of $0.93. This represents an 11.63% increase from $0.86 in the same period of 2025. The growth was driven by the recent acquisition of Bank of Houston and organic loan expansion. The company also announced a 6% increase in its quarterly dividend to 18 cents per share and confirmed that Chairman and CEO Curtis Griffith will retire at the end of 2026, with President Corey Newsom set to succeed him on January 1, 2027.

The company completed the merger of BOH Holdings, the parent of Bank of Houston, on April 1, 2026, adding approximately $631.9 million in loans and $595.6 million in deposits. Net interest income for the quarter was $50.3 million, compared to $42.5 million in the second quarter of 2025. The net interest margin on a tax-equivalent basis was 4.00%, slightly down from 4.07% in the prior year. Noninterest income increased to $14.1 million, bolstered by higher mortgage banking revenues and bank card services.

Financial Performance

Asset Quality and Capital

The ratio of nonperforming assets to total assets was 0.19% as of June 30, 2026, compared to 0.25% a year ago. The allowance for credit losses to loans held for investment ratio was 1.41%. Book value per share increased to $33.43 from $27.98 in the prior year. 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%.

Curtis Griffith highlighted the successful integration of Bank of Houston and the company's position in the Texas market. Corey Newsom noted the strength of the relationship-based banking model and plans to expand the lending platform in high-growth markets.

South Plains Financial, Inc. has increased its quarterly cash dividend by 6% to $0.18 per share, rising from the $0.17 dividend declared in April 2026. The dividend is payable on August 10, 2026, to shareholders of record as of the close of business on July 27, 2026. This decision underscores the company's commitment to returning value to its shareholders amidst its ongoing financial operations.

Dividend Details

The Board of Directors of South Plains Financial, Inc. approved the dividend increase, reflecting the company's financial stability and confidence in its performance. The payment schedule aligns with standard corporate practices, ensuring shareholders receive distributions in a timely manner.

Company Overview

South Plains Financial, Inc. serves as the bank holding company for City Bank, a Texas state-chartered bank headquartered in Lubbock, Texas. City Bank operates as one of the largest independent banks in West Texas, with additional presence in Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas, as well as Ruidoso, New Mexico. The company offers a broad range of commercial and consumer financial services, including commercial and retail banking, investment, trust, and mortgage services.