South Plains Financial beats Q3 2026 estimates as Bank of Houston integration pays off
As seen on the 24/7 Wall St. homepage on October 22, 2026.
The finished Bank of Houston integration is already paying off: net interest income climbed to $51.5 million from $43.0 million a year ago. Management also raised the quarterly dividend to $0.19 and handed the CEO role to Cory Newsom at year-end.
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South Plains Financial posted third-quarter 2026 earnings per share of $1.06, beating expectations, with revenue also ahead of estimates. The beat was driven largely by a surge in net interest income following the Bank of Houston deal.
That jump in net interest income reflects the full contribution of the Bank of Houston acquisition, whose integration and system conversion were both completed during Q3. The one-time costs that weighed on prior quarters are now behind the company, with noninterest expense falling to $38.07 million as acquisition-related charges subsided.
Organic loan growth accelerated to 6.3% annualized during the quarter, and management described the loan pipeline as healthy. Texas market consolidation gives the bank room to recruit experienced bankers and win market share.
On the capital return front, management raised the quarterly dividend by 6% to $0.19 per share, declared on October 22 with a payment date of November 16. The company also announced that Cory Newsom will take over as CEO at year-end, with outgoing CEO Curtis Griffith remaining as Chairman to help guide long-term strategy. Griffith described the results as near-record earnings and characterized the leadership transition as the product of years of planning.
Nonperforming assets ticked up to 0.31% of total assets, and book value per share was pressured by a decline in accumulated other comprehensive income tied to rising long-term interest rates. Those are the main items to weigh against an otherwise strong operational quarter.
Mentioned: SPFI