South Plains Financial Q3 net income rises on loan growth, BOH acquisition

Overview

• US regional bank's Q3 net income rose yr/yr, driven by organic growth and BOH acquisition

• Q3 diluted EPS increased yr/yr

• Company reported organic loan growth and expanded lending platform in Texas markets

Outlook

• Company did not provide specific financial guidance for the current quarter or full year in its press release

Result Drivers

• ORGANIC LOAN GROWTH - Co said Q3 loan growth was driven by organic expansion in Texas markets

• BOH ACQUISITION IMPACT - Co said increases in interest income and expenses were mainly due to BOH acquisition

• MORTGAGE BANKING REVENUES - Co said Q3 noninterest income rose yr/yr mainly due to higher mortgage banking revenues from fair value adjustment of mortgage servicing rights

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "hold."

• Wall Street's median 12-month price target for South Plains Financial Inc is $50.00, about 15.2% above its October 21 closing price of $43.40

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin

• Oct 21 - Pinnacle Financial Partners Q3 adjusted profit beats estimates on loan, fee income growth

• Oct 21 - First Bancorp Q3 net income rises 17.5%

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)