South Plains Financial Reports $20.8M Third-Quarter Profit
The Texas-based bank posted higher net income and expanded its loan book following its integration of Bank of Houston.
Updated on Nov. 2, 2026 in Corporate Finance
South Plains Financial reported third-quarter 2026 net income of $20.8 million, up from $19 million in the prior quarter. The company said total loans reached $3.83 billion as annualized organic loan growth hit 6.3%.
Why it matters
The results show the bank continuing to grow after completing its Bank of Houston acquisition, with market share gains in Dallas, Houston and El Paso. Stable margins and a lower cost of deposits suggest the company is managing funding costs while expanding.
Net income rose to $20.8 million from $19 million, while total loans expanded to $3.83 billion with 6.3% annualized organic growth. The tax-equivalent net interest margin held at 4%, and the cost of deposits improved by 1 basis point to 2.07%.
The players
South Plains Financial
A Texas-based bank holding company with operations in Dallas, Houston and El Paso that reported the quarterly results.
The details
Management said it completed system conversions and employee training following the Bank of Houston acquisition. The company also paid off a $25 million deposit-secured loan early and allowed higher-cost, non-core funds to exit, while recruiting commercial lenders from consolidated competitors.
Timeline
October 22, 2026: South Plains Financial held its third-quarter 2026 earnings call.
Second half of 2026: Management expects loan pipelines to accelerate.
Market Dynamics
The quarter follows South Plains' acquisition of Bank of Houston and reflects a regional consolidation trend in Texas banking. Recruiting lenders from competitors that merged suggests the company is capturing talent and customers displaced by that consolidation.
Shareholders can track whether loan growth and margin stability continue in coming quarters, since the company's results depend on the second-half pipeline acceleration management described. Depositors may see the cost of deposits remain near 2.07% if funding conditions hold.
The takeaway
Investors watching regional banks should weigh whether post-acquisition integration translates into sustained organic growth. South Plains' margin stability and falling deposit costs are the signals to monitor in upcoming reports.
Further reading
Explore more corporate finance coverage for Texas-based banks and their quarterly performance.
