SPFI 10-K & 10-Q changes, risk factors and insider trading
South Plains Financial, Inc. · Nasdaq · State Commercial Banks · CIK 1163668 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
Largest changes
Moreover, as the effects of climate change continue to create a level of concern for the state of the global environment, companies are facing increasing scrutiny from customers, regulators, investors and other stakeholders related to their environmental, social and governance (“ESG”) practices and disclosure.see in full comparisonNew government regulations could result in more stringent forms of ESG oversight and reporting and diligence and disclosure requirements.Increased ESG related compliance costs, in turn, could result in increases to our overall operational costs. Conversely, there has been increasing anti-ESG sentiment in the U.S., which has led and is likely to continue to lead to new anti-ESG policies and legislative and regulatory requirements discouraging or preventing ESG-related initiatives. As a result, we may face heightened and potentially conflicting regulatory and legal requirements, as well as reputational scrutiny. Failure to adapt to or comply with regulatory requirements or investor or stakeholder expectations and standards, including with respect to the Company’s involvement in certain industries or projects associated with causing or exacerbating climate change, may negatively affect the Company’s reputation and commercial relationships, which could adversely affect our business.
Our bylaws have an exclusive forum provision providing that, unless we consent in writing to an alternative forum, the Business Court in the Ninth Business Court Division (the “Business Court”) of the State of Texas, or in the event that such court lacks jurisdiction to hear the action, the U.S. District Court for the Northern District of Texas, Lubbock Division, or in the event that such court lacks jurisdiction to hear the action, the District Courts of the County of Lubbock, Texas, are the sole and exclusive forum and venue for certain causes of action, which may limit a shareholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers or other employees, which may discourage such lawsuits. Alternatively, if a court were to find the exclusive forum provision to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could have a material adverse effect on our business, financial condition, results of operations and growth prospects.see in full comparison
Reputation risk, or the risk to our business, earnings and capital from negative public opinion is inherent in our business. Negative public opinion can result from our actual or alleged conduct in any number of activities, including lending practices, corporate governance and acquisitions, and from actions taken by government regulators and community organizations in response to those activities. Negative public opinion can adversely affect our ability to keep and attract customers and employees and can expose us to litigation and regulatory action and adversely affect our results of operations. Although we take steps to minimize reputational risk in dealing with our customers and communities, this risk will always be present given the nature of our business. In addition,see in full comparisoncompanies are facing increased scrutiny from customers, regulators, investors, and other stakeholders related to their environmental, social and governance (“ESG”) practices and disclosure. Investorinvestor advocacy groups, investment funds and influential investors are also increasingly focused ontheseESG practices, especially as they relate to the environment, health and safety, diversity, labor conditions and human rights. For example, certain investors are beginning to incorporate the business risks of climate change and the adequacy of companies’ responses to climate change and other ESG matters as part of their investment theses. These shifts in investing priorities may result in adverse effects on the trading price of the Company’s common stock if investors determine that the Company has not made sufficient progress on ESG matters. In addition,newfuture government regulations could also result in new or more stringent forms of ESG oversight and expanding mandatory and voluntary reporting, diligence, and disclosure. Increased ESG-related compliance costs could result in increases to our overall operational costs.
Full comparison: every changed paragraph (4)
Our business and operations, which primarily consist of lending money to customers in the form of loans, borrowing money from customers in the form of deposits and investing in
securities, are sensitive to general business and economic conditions in the U.S. Uncertainty about the federal fiscal policymaking process, and the medium and long-term fiscal outlook of the federal government and U.S. economy, is a concern for
businesses, consumers and investors in the U.S. Our business is also significantly affected by monetary and related policies of the U.S. government and its agencies. In 2022 and 2023, the Federal Open Market Committee (“FOMC”) of the Federal
Reserve repeatedly raised their target benchmark interest rate in response to the ongoing inflationary environment in the United States, resulting in subsequent prime rate increases of 525 basis points between March of 2022 and July of 2023. While
the FOMC target benchmark rate and the prime rate were decreased by 100 basis points in 2024 and another 75 basis points in 2024,2025, sustained levels or future increases in market interest rates may have an adverse effect on our business, financial
condition and results of operations as it
could reduce the demand for loans and affect the ability of our borrowers to repay their indebtedness subjecting us to potential credit losses. Changes in any of these policies are beyond our control.
Adverse economic conditions and government
policy responses to such conditions could have a material adverse effect on our business, financial condition, results of operations and prospects. All of these factors are detrimental to our business, and
the interplay between these factors can be
complex and unpredictable.
Moreover, as the effects of climate change continue to create a level of concern for the state of the global environment, companies
are facing increasing scrutiny from customers, regulators, investors
and other stakeholders related to their environmental, social and governance (“ESG”) practices and disclosure. New government regulations could result in more stringent forms of
ESG oversight and reporting and diligence and disclosure requirements. Increased ESG related compliance costs, in turn, could result in increases to our overall operational costs. Conversely, there has been
increasing anti-ESG sentiment in the
U.S., which has led and is likely to continue to lead to new anti-ESG policies and legislative and regulatory requirements discouraging or preventing ESG-related initiatives. As a result, we may face
heightened and potentially conflicting
regulatory and legal requirements, as well as reputational scrutiny. Failure to adapt to or comply with regulatory requirements or investor or stakeholder expectations and standards, including with respect
to the Company’s involvement in certain
industries or projects associated with causing or exacerbating climate change, may negatively affect the Company’s reputation and commercial relationships, which could adversely affect our business.
Reputation risk, or the risk to our business, earnings and capital from negative public opinion is inherent in our business. Negative public opinion can result from our actual or
alleged conduct in any
number of activities, including lending practices, corporate governance and acquisitions, and from actions taken by government regulators and community organizations in response to those activities. Negative public opinion
can adversely affect our
ability to keep and attract customers and employees and can expose us to litigation and regulatory action and adversely affect our results of operations. Although we take steps to minimize reputational risk in dealing with
our customers and
communities, this risk will always be present given the nature of our business. In addition, companies are facing increased scrutiny from customers, regulators, investors, and other stakeholders related to their environmental,
social and governance (“ESG”) practices and disclosure. Investorinvestor advocacy groups, investment funds and influential investors are also increasingly focused on theseESG practices, especially as they relate to the
environment, health and safety,
diversity, labor conditions and human rights. For example, certain investors are beginning to incorporate the business risks of climate change and the adequacy of companies’ responses to climate change and other ESG
matters as part of their
investment theses. These shifts in investing priorities may result in adverse effects on the trading price of the Company’s common stock if investors determine that the Company has not made sufficient progress on ESG
matters. In addition, new
future government regulations could also result in new or more stringent forms of ESG oversight and expanding mandatory and voluntary reporting, diligence, and disclosure. Increased ESG-related compliance costs could result in
increases to our overall
operational costs.
Our bylaws have an exclusive forum provision providing that, unless we consent in writing to an alternative forum, the Business Court in the Ninth Business Court Division (the “Business Court”) of the State of Texas, or in the event that such court lacks jurisdiction to hear the action, the U.S. District Court for the Northern District of Texas, Lubbock Division, or in the event that such court lacks jurisdiction to hear the action, the District Courts of the County of Lubbock, Texas, are the sole and exclusive forum and venue for certain causes of action, which may limit a shareholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers or other employees, which may discourage such lawsuits. Alternatively, if a court were to find the exclusive forum provision to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could have a material adverse effect on our business, financial condition, results of operations and growth prospects.
Management's Discussion & Analysis (MD&A)
Largest changes
“Mortgage Servicing Rights. When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the consolidated statement of comprehensive income (loss) effect recorded in net gain on sale of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model administered by a third-party that calculates present value of estimated future servicing income. …”see in full comparison
“The $21.5 million increase in interest expense for the year ended December 31, 2024 was primarily related to an increase of $211.1 million in average interest-bearing liabilities and a 56 basis points increase in the rate paid on interest-bearing liabilities over the same period in 2023. Average interest-bearing deposits grew $222.8 million and the rate paid on those deposits increased 60 basis points during the compared period. The larger growth in deposits began during the second and third quarters of 2023 in response to loan demand and increased emphasis on liquidity. …”see in full comparison
“The $8.8 million decrease in interest expense for the year ended December 31, 2025 was primarily related to a 42 basis points decrease in the rate paid on interest-bearing liabilities over the same period in 2024, partially offset by an increase of $96.4 million in average interest-bearing liabilities. The decline in rates was largely attributed to the Federal Open Market Committee (“FOMC”) of the Board of Governors of the Federal Reserve dropping their target benchmark interest rate, resulting in federal funds rate decreases of 75 basis points in the last four months of 2025.”see in full comparison
“Construction loans decreased $25.3 million, or 19.6%, to $103.9 million as of December 31, 2024 from $129.2 million as of December 31, 2023. The decrease resulted from the continued reduced demand for residential construction as interest rate levels remained elevated and projects were completed and sold.”see in full comparison
“On December 1, 2025, SPFI, and BOH Holdings, Inc., a Texas corporation (“BOH”), entered into an Agreement and Plan of Reorganization (the “Reorganization Agreement”), providing for the acquisition by SPFI of BOH through the merger of BOH with and into SPFI, with SPFI surviving the merger (the “Merger”). At December 31, 2025, BOH had $745.1 million in assets, $624.5 million in total gross loans, and $603.0 million in deposits. …”see in full comparison
“As discussed in Note 1 - Summary of Significant Accounting Policies in the accompanying notes to consolidated financial statements, our policies and procedures related to accounting for credit losses changed effective January 1, 2023, as we adopted the accounting standard update as codified in Accounting Standards Codification (“ASC”) Topic 326 (“ASC 326”) Financial Instruments - Credit Losses. The amount of allowance represents management’s best estimate of current expected credit losses (“CECL”) on these financial instruments over the contractual term of the instrument. …”see in full comparison
Full comparison: every changed paragraph (54)
On December 1, 2025, SPFI, and BOH Holdings, Inc., a Texas corporation (“BOH”), entered into an Agreement and Plan of Reorganization (the “Reorganization Agreement”), providing for the acquisition by SPFI of BOH through the merger of BOH with and into SPFI, with SPFI surviving the merger (the “Merger”). At December 31, 2025, BOH had $745.1 million in assets, $624.5 million in total gross loans, and $603.0 million in deposits. Pursuant to the terms and subject to the conditions of the Reorganization Agreement, which has been unanimously approved by the boards of directors of each of SPFI and BOH, each share of BOH common stock issued and outstanding immediately prior to the effective time of the Merger (the “effective time”) will be converted into the right to receive, without interest, 0.1925 shares of SPFI common stock, subject to adjustment pursuant to the terms of the Reorganization Agreement (the “Exchange Ratio”), plus cash in lieu of any fractional shares.
Based on the closing price of $37.79 for SPFI common stock on November 28, 2025, the Merger would have an aggregate value of approximately $105.9 million, though the transaction value is likely to change until closing due to fluctuations in the price of SPFI common stock. Immediately following the consummation of the Merger, Bank of Houston, a Texas state banking association and wholly-owned subsidiary of BOH, will merge with and into City Bank, with City Bank surviving the merger. The Merger is expected to close during the second quarter of 2026, subject to the satisfaction of customary closing conditions, including the receipt of all required regulatory approvals and the approval of BOH’s shareholders.
On April 1, 2023, SPFI entered into a Securities Purchase Agreement (“Agreement”) with Alliant Insurance Services, Inc. (“Alliant”), providing for the sale of Windmark Insurance Agency, Inc.
(“Windmark”) through a sale of all of the outstanding shares of capital stock of Windmark to Alliant. The transaction was consummated on April 1, 2023. Pursuant to the terms and subject to the conditions of the Agreement, SPFI received an aggregate
purchase price of $36.1 million in exchange for Windmark’s common shares, representing a pre-tax gain of $33.8 million. This transaction did not meet the criteria for discontinued operations reporting.
Net income for the year ended December 31, 20242025 was $49.7$58.5 million, or $2.92$3.44 per diluted share, compared to $62.7$49.7 million, or $3.62$2.92 per diluted share, for the year ended December 31, 2023.2024. The
increase decrease
in net income was primarily the result of a decrease of $31.2 million in noninterest income, partially offset by an increase of $7.4$19.9 million in net interest income, andpartially offset by a decrease of $7.4$3.2 million in noninterest income and an increase of $5.0 million in noninterest expenses. Details of the
changes in the
various components are further discussed below.
Return on average assets was 1.17%1.33% and return on average equity was 11.75%12.70% for the year ended December 31, 2024,2025, compared to 1.54%1.17% and 16.58%,11.75%, respectively, for the year ended December 31, 2023.
2024. The
decrease increase in return on average assets was primarily due to the decreaseincrease in net income of 20.8%,17.6%, relative to an increase of 3.8%3.6% in total average assets.
Net interest income for the year ended December 31, 20242025 was $147.1$167.0 million compared to $139.7$147.1 million for the year ended December 31, 2023,2024, an increase of $7.4$19.9 million, or 5.3%.13.5%. The increase
in net
interest income in 20242025 was comprised of a $28.9$11.1 million, or 13.6%,4.6%, increase in interest income,income partially offset byand a $21.5$8.8 million, or 29.8%,9.4%, increasedecrease in interest expense. The growth in interest income was primarily attributable to increases of
$25.7 $8.9 million
in loan interest income and $4.3 million in interest income from other interest-earning assets.income. The increase in loan interest income was primarily due to growth of $129.7$33.4 million in average loans outstanding and an increase of 5822 basis
points in the yield on loans. TheAdditionally, increasethere was a recovery of $1.7 million
in interest incomeduring the second quarter of 2025, related to a full repayment of a loan that had previously been on othernonaccrual. interest-earningThis assetsrecovery waspositively primarilyimpacted duethe toloan growthyield ofby $89.8approximately million6 inbasis averagepoints otherduring interest-earning assets.2025.
The $8.8 million decrease in interest expense for the year ended December 31, 2025 was primarily related to a 42 basis points decrease in the rate paid on interest-bearing liabilities over the same period in 2024, partially offset by an increase of $96.4 million in average interest-bearing liabilities. The decline in rates was largely attributed to the Federal Open Market Committee (“FOMC”) of the Board of Governors of the Federal Reserve dropping their target benchmark interest rate, resulting in federal funds rate decreases of 75 basis points in the last four months of 2025.
The $21.5 million increase in interest expense for the year ended December 31, 2024 was primarily related to an increase of $211.1 million in average
interest-bearing liabilities and a 56 basis points increase in the rate paid on interest-bearing liabilities over the same period in 2023. Average interest-bearing deposits grew $222.8 million and the rate paid on those deposits increased 60
basis points during the compared period. The larger growth in deposits began during the second and third quarters of 2023 in response to loan demand and increased emphasis on
liquidity. Interest rates paid on deposits continued to rise until the fourth quarter of 2024, given the easing of shorter-term interest rates.
Credit risk is inherent in the business of making loans. We establish an allowance for credit losses (“ACL”) through charges to earnings, which are shown in the consolidated
statements of
comprehensive income (loss) as the provision for credit losses. Credit losses on loans are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. The provision for credit losses is
determined by
conducting a quarterly evaluation of the adequacy of our ACL and charging the shortfall or excess, if any, to the current quarter’s expense. This has the effect of creating variability in the amount and frequency of charges to our
earnings. The
provision for credit losses and the amount of allowance for each period are dependent upon many factors, including loan growth, net charge offs,charge-offs, changes in the composition of the loan portfolio, delinquencies, management’s
assessment of the quality
of the loan portfolio, the valuation of problem loans and the general economic conditions in our market areas. See “Financial Statements and Supplementary Data – Note 1.
Summary of Significant Accounting
Policies” in the notes to our consolidated financial statements included elsewhere in this Report for more detailed discussion.
The provision for credit losses for the year ended December 31, 20242025 was $4.3$5.2 million compared to $4.6$4.3 million for the year ended December 31, 2023.2024. The provision during the year ended December
31, 2024
2025 was largely attributable to net charge-offs of $3.5$3.0 million and loan growth during 2024.2025. Net charge-offs increaseddecreased $1.5$428 millionthousand during 20242025 as compared to 2023.2024. The allowance for credit losses as a percentage of loans held for
investment was 1.42% at
December 31, 2024 and 1.41%1.44% at December 31, 2023.2025 and 1.42% at December 31, 2024. Further discussion of the allowance for credit losses is noted below.
While interest income remains the largest single component of total revenues, noninterest income is an important contributing component. The largest portion of our noninterest income is
associated with
our mortgage banking activities. Other sources of noninterest income include service charges on deposit accounts, and bank card services and interchange fees. Prior to the sale of Windmark in 2023, income from insurance activities also comprised a large
portion of noninterest income.
Service charges on deposit accounts - Income from service
charges on deposit accounts increased $896$797 thousand, or 12.6%9.9% for the year ended December 31, 2024
2025 compared to the same period in 2023.2024. This was largely a result of anincreased increasedcommercial deposits, a continued focus on commercialgrowing treasury revenuemanagement services, which began building during 2024, and expandingan thatincrease in customer base.overdraft fees.
Mortgage banking activities - Income from mortgage banking activities increaseddecreased $369$3.5 thousand,million, or 2.7%,24.7%, to $10.7 million for the year ended December 31,
2025 from $14.2 million for the year ended December 31, 2024 from
$13.8 million for the year ended December 31, 2023.2024. The increasedecrease was primarily the result of a $1.2$3.3 million decrease in the valuation adjustment for thenegative fair value adjustment of the Company’s mortgage servicing rights portfolio for the year ended December 31,
2024 2025 as
compared to a $2.4negative $1.2 million decreaseadjustment for the same period in 2023.2024. ThisThe increase$2.1 million larger negative adjustment in 2025 was partiallymainly offsetdue withto aoverall decreaselower inrates gainduring onthe loan salesyear as acompared resultto of2024. In addition, there was also a decrease of $29.5
$23.3 million, or 9.2%,8.0%, in mortgage loan originations in the current year
as compared to the prior year.
Income from insurance activities - Due to the sale of Windmark in the second quarter of 2023, there was a decline of $1.4 million in income from insurance
activities for year ended December 31, 2024 as compared to the same period in 2023.
Other income and fees - Other noninterest income and fees
increased $2.1decreased million$959 thousand for the year ended December 31, 20242025 compared to the same period in 2023.
2024. The increasedecrease was largelyprimarily as athe result of an increasedecreases of $715$576 thousand in income
from sweepSBIC accounts, year over year,investments and from $700$611 thousand receivedrecognized infor 2024 inproperty insurance proceeds for
propertyduring damage.the current year as compared to the prior year.
Gain on sale of subsidiary - A $33.8 million gain from the sale of Windmark was recorded in 2023.
Noninterest expense for the year ended December 31, 20242025 was $127.6$132.6 million compared to $134.9$127.6 million for the year ended December 31, 2023,2024, aan decreaseincrease of $7.4$5.0 million, or 5.5%.4.0%. Significant
changes in
the components of noninterest expense are detailed below.
Salaries and employee benefits - Salaries and employee benefits increased $2.6 million, or 3.5%, from $74.3 million for the year ended December 31, 2024 to $76.9 million for the year ended December 31, 2025. This was primarily driven by annual salary adjustments, which became effective in January of 2025.
SalariesProfessional and employee benefitsservices - SalariesProfessional andservices employeeincreased benefits
decreased$727 $5.0 million,thousand, or 6.3%,11.0%, from $79.4$6.6 million for the year ended December 31, 20232024 to $74.3$7.3 million
for the year ended December 31, 2024.2025. This was primarily driven by approximately $2.7$500 millionthousand ofin compensationmerger related to operation of Windmark
in the first quarter of 2023expenses and theby relatedincreased saleconsulting infees thefor secondtechnology quarter of 2023. There was also a decrease of $1.5 million in mortgage personnel costs, due to the reduction in mortgage loan originationsprojects and operationsother initiatives during 20242025 as compared to 2023.2024.
Loss on sale of securities - The Company sold approximately
$56.2 million of available for sale securities in the second quarter of 2023 which resulted in a loss on sale of $3.4 million. There were no sales of securities during 2024.
IT and data services – IT and data services expenses increased
$876 $415 thousand or 25.7%9.7% in the current year from $3.4$4.3 million for the year ended December
31, 2024 to $4.7 million for the year ended December 31, 2023 to $4.3 million for the year ended December 31, 2024.2025. The increase relates primarily to the Company’scontinued cloudrising migrationcost project.of technology services and customers using more digital services.
Other expenses - Other expenses increased $878 thousand, or 5.3%, from $16.6 million for the year ended December 31, 2024 to $17.5 million for the year ended December 31, 2025. This increase was primarily driven by an increase of $845 thousand in the ineffectiveness related to fair value hedges on municipal securities in 2025 as compared to 2024.
Loans held for investments increased $40.9$89.4 million, or 1.4%,2.9%, to $3.14 billion at December 31, 2025 as compared to $3.06 billion at December 31, 2024 as compared to $3.01 billion at December 31, 2023.2024. The organic loan growth remained
relationship-focused and occurred primarilybroadly inacross commercialthe realloan estate loans, residential mortgage loans, and energy loans,portfolio, partially offset by decreasesa decrease of $86.2 million in consumermulti-family auto loans and residential constructionproperty loans.
Commercial Real Estate. Our commercial real estate portfolio includes loans for commercial property that is owned by real estate investors, construction loans to build owner-occupied properties, and loans to developers of commercial real estate investment properties and residential developments. Residential construction loans are broken out separately below. Commercial real estate loans are subject to underwriting standards and processes similar to our commercial loans. These loans are underwritten primarily based on projected cash flows for income-producing properties and collateral values for non-income-producing properties. The repayment of these loans is generally dependent on the successful operation of the property securing the loans or the sale or refinancing of the property. Real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing our real estate portfolio are diversified by type and geographic location. This diversity helps reduce the exposure to adverse economic events that affect any single market or industry.
Commercial real estate loans increaseddecreased $38.0$54.4 million, or 3.5%,4.9%, to $1.06 billion as of December 31, 2025 from $1.12 billion as of December 31, 2024 from $1.08 billion as of December 31, 2023.2024. The increasedecrease was primarily driven by ana
decrease increase
of $27.5$86.2 million related to the completion of fourin multi-family propertiesloans and $18.9 million in hospitality loans, partially offset by increases in residential and commercial land development loans duringand 2024.other commercial real estate loans.
Commercial general loans increased $40.0$102.0 million, or 7.7%,18.3%, to $659.3 million as of December 31, 2025 from $557.4 million as of December 31, 20242024. from $517.4 million as of December 31, 2023.
The increase in commercial general loans was
primarily due to increases inbroadly across this segment with the largest increases coming from restaurant and retail loans toand companiesgoods in theand services industry of $25.9 million and increases in loans in the
restaurant/retail industry of $6.7 million.loans.
Commercial specialized loans increased $16.6$20.4 million, or 4.5%,5.2%, to $409.4 million as of December 31, 2025 from $389.0 million as of December 31, 2024 from $372.4 million as of December 31, 2023.2024. This increase was primarily due to growth
of of
$20.9$28.1 million in energy sector loans, and a $5.4 million increase in ag production loans, partially offset by a decrease of $13.8$7.1 million in agagricultural real estate loans .loans.
Consumer loans decreasedincreased $28.4$25.3 million, or 3.1%,2.9%, to $911.1 million as of December 31, 2025, from $885.8 million as of December 31, 2024, from $914.2 million as of December 31, 2023.2024. The decreaseincrease in these loans was primarily a result of a
$23.5 $50.8
million decrease in consumer auto loans, partially offset with an increase of $31.7 million in residential mortgage loans. The reduction in consumer auto loans was planned given competitiveness for the best credit indirect auto loans. As of
December 31, 2024,2025, our consumer loan portfolio was comprised of $566.4$589.9 million in 1-4 family residential loans, $254.5$259.2 million in auto loans, and $64.9$62.1 million in other consumer loans.
Construction loans decreased $3.8 million, or 3.6%, to $100.1 million as of December 31, 2025 from $103.9 million as of December 31, 2024.
Construction loans decreased $25.3 million, or 19.6%, to $103.9 million as of December 31, 2024 from $129.2 million as of December 31, 2023. The decrease resulted from the continued reduced demand
for residential construction as interest rate levels remained elevated and projects were completed and sold.
The commercial real estate and construction categories comprise the Company’s nonowner-occupied real estate loans. Total nonowner-occupied real estate loans were $1.16 billion at December 31,
2025 and $1.22 billion at December 31, 2024
and $1.21 billion at December 31, 2023.2024. Nonowner-occupied commercial real estate loans are made up of income-producing commercial real estate property loans and construction, acquisition, and development property loans. As of December 31,
2025, 2024,
total income-producing commercial real estate property loans totaled $881.2$796.3 million and was comprised of $315.9$229.7 million of multi-family property loans, $181.0$183.3 million of retail property loans, $141.9$141.3 million of office property loans, $61.0$42.2
million in hospitality loans, and $181.4$199.8 million in industrial and other property loans. OtherIndustrial and other property loans include types such as industrial, warehouse, mini-storage, and convenience stores. As of December 31, 2024,2025, total construction,
acquisition, and
development property loans totaled $341.7$368.4 million and was comprised of $103.8$100.1 million in residential construction property loans and $237.9$268.3 million of commercial construction and other land development loans. The weighted average
loan-to-value of
income-producing nonowner-occupied commercial real estate loans was approximately 53%55% at December 31, 2024.2025. The weighted average loan-to-value of nonowner-occupied office commercial real estate loans was approximately 56%58% at
December 31, 2024.2025.
As discussed in Note 1 - Summary of Significant Accounting Policies in the accompanying notes to consolidated financial statements, our policies and procedures related to accounting for credit
losses changed effective January 1, 2023, as we adopted the accounting standard update as codified in Accounting Standards Codification (“ASC”) Topic 326 (“ASC 326”) Financial Instruments - Credit Losses. The amount of allowance represents
management’s best estimate of current expected credit losses (“CECL”) on these financial instruments over the contractual term of the instrument. Upon adoption, we recognized a cumulative effect adjustment to the ACL for loans and off-balance
sheet credit exposures of $1.3 million. The CECL model requires recording life-of-loan projected losses in the loan portfolio based on future economic events and related loan portfolio credit performance. The prior accounting standard recorded
reserves based on incurred losses at the balance sheet date.
The ACL for loans was $45.1 million at December 31, 2025 compared to $43.2 million at December 31, 2024, an increase of $1.9 million, or 4.4%. The ACL for loans as a percentage of loans held for investment was 1.44% at December 31, 2025 and 1.42% at December 31, 2024.
The allowance for credit losses was $43.2 million at December 31, 2024 compared to $42.4 million at December 31, 2023, an increase of $0.9 million, or 2.1%. The increase was primarily a result of a
provision for credit losses on loans of $4.3 million being recorded during 2024 based on growth in the loan portfolio and net charge-offs of $3.5 million during 2024.
Net charge-offs totaled $3.5$3.0 million and were 0.11%0.10% of average loans outstanding for the year ended December 31, 2024,2025, compared to $2.0$3.5 million and 0.07%0.11% for the year ended December 31, 2023.2024. Gross charge-offs
increased $1.3$44 millionthousand and recoveries decreasedincreased $191$472 thousand for the year ended December 31, 20242025 compared to the same period in 2023. The increase in charge-offs was primarily attributable to an increase of $613 thousand in general commercial
loan charge-offs and an increase of $298 thousand in charge-offs on consumer auto loans in 2024. The allowance for credit losses as a percentage of loans held for investment was 1.42% at December 31, 2024 and 1.41% at December 31, 2023.
At December 31, 2024,2025, our total nonaccrual loans were $7.1 million, or 0.22% of total loans held for investment, as compared to $22.1 million, or 0.72% of total loans held for investment, as compared to $3.2 million, or 0.11% of total loans held for investment, at
December 31, 2023.2024. These loans within this amount that exceeded $250 thousand were specifically analyzed and specific valuation allowances were established as necessary and included in the ACL for loans as of December 31, 20242025 to cover any
probable loss. The increasedecrease in the year ended December 31, 20242025 was primarily due to onethe full repayment of a $19.5 million loan in the second quarter of 2025 that had been on nonaccrual at December 31, 2024. This decrease was partially offset by
other loans being placed on nonaccrual status during the second quarter of 2024 after the maturity date was accelerated.2025.
Nonperforming loans were $9.8 million at December 31, 2025 and $24.0 million at December 31, 2024 and $5.2 million at December 31, 2023.2024. This increasedecrease is mainly due to the new nonaccrual loanchanges noted above.
If a borrower on a restructuredmodified accruing loan has demonstrated performance under the previous terms, is not experiencing financial difficulty and shows the capacity to continue to perform under the
restructured terms, the loan will remain on accrual status. Otherwise, the loan will be placed on nonaccrual status until the borrower demonstrates a sustained period of performance, which generally requires six consecutive months of payments.
Total securities at December 31, 20242025 were $577.2$567.5 million, representing a decrease of $45.5$9.7 million, or 7.3%,1.7%, compared to $622.8$577.2 million at December 31, 2023.2024. The decrease
was was
primarily due to $33.2$28.9 million in maturities, prepayments and calls, net of purchases and a $9.7$21.7 million decrease in the fair value of securities available for sale securities at December 31, 20242025 as compared to December 31, 2023.2024.
Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. During the year ended December 31, 2024,2025, the fair value adjustment to the Company’s
securities available
for sale securitiesincreased decreased$21.7 million after decreasing by $9.7 million after increasing by $20.7 million during 2023.2024. The change resulted from increaseddecreased longer-term interest rates during 2024.2025. At December 31, 2024,2025, the Company evaluated whether the decline in fair
value has
resulted from credit losses or other factors. Within this evaluation, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by rating agency, and adverse conditions
specifically specifically
related to the security, among other factors. Based on management’s evaluation no unrealized losses on securities were determined to be due to credit loss. Additionally, we anticipate full recovery of amortized cost with respect to
these these
securities by maturity, or sooner in the event of a more favorable market interest rate environment. We do not intend to sell these securities and it is not probable that we will be required to sell them before recovery of the amortized
cost cost
basis, which may be at maturity, thus no ACL or losses have been recognized or realized in the consolidated financial statements for securities in the portfolio.
Total deposits at December 31, 20242025 were $3.62$3.87 billion, representing a
decreasean increase of $5.3$253.2 million, or 0.1%,7.0%, compared to $3.63$3.62 billion at December 31, 2023.2024. DepositsThe wereincrease essentiallywas unchanged,due year-over-year,to organic
growth and occurred broadly across commercial and retail deposits, with an increasegrowth in interest-bearing deposits offset by a decline inboth noninterest-bearing and interest-bearing deposits. As of
December 31, 2024,2025, 25.8%26.4% of total deposits were comprised of noninterest-bearing demand accounts, 61.9%
62.5% of interest-bearing non-maturity accounts and 12.3%11.1% of time deposits. Interest-bearing non-maturity accounts included $207.8$210.8 million in
brokered deposits, which represented 5.7%5.4% of total deposits at December 31, 2024.2025.
In addition to deposits, we may utilize advances from the FHLB and other borrowings as a supplementary funding source to finance our operations.
The Company may use FHLB letters of credit to pledge to certain public deposits. The outstanding balance of FHLB letters of credit was $0 and $75.0 million and $0 at December 31, 20242025 and December 31,
2023,2024, respectively.
In December 2018, the Company issued $26.5 million in subordinated notes. Notes totaling $12.4 million (the “2028 Notes”) have a maturity date of December 2028 and a weighted average fixed rate of
5.74% for the first five years. The remaining $14.1 million of subordinated notes that have a maturity date of December 2030 and a weighted average fixed rate of 6.41% for the first seven years. After
the fixed rate periods,period, all notes will float at the Wall Street Journal prime rate, with a floor of 4.0% and a ceiling of 7.5%. These notes pay interest quarterly, are unsecured, and may be called by the
Company at any time after the remaining maturity is five
years or less. Additionally, these notes are intended to qualify for Tier 2 capital treatment, subject to regulatory limitations.
On NovemberSeptember 8,29, 2023,2020, the Company issued $50.0 million in subordinated notes. Proceeds were reduced by approximately $926 thousand in debt issuance costs. The notes had a maturity date of
September 2030 with a fixed rate of 4.50% for the first five years. On August 25, 2025, the Company notified holders (the “Redemption Notice”) of itsthese 2028 Notesnotes that it had elected to redeem all theof these outstanding 2028 Notesnotes effective on DecemberSeptember 15,30,
2025 2023
(the “Redemption Date”). Each of thethese 2028 Notesnotes were redeemed pursuant to the terms of the Indenture, dated as of DecemberSeptember 14,29, 2018,2020, between the Company and ArgentUMB TrustBank, Company,National N.A.,Association, as trustee for thethese 2028 Notesnotes (the “Trustee”), at the
redemptionRedemption pricePrice totaling approximately $12.4$50.0 million in aggregate principal amount, plus accrued and unpaid interest.interest (the “Redemption Price”). As provided in the redemptionRedemption notice,Notice, on the Redemption Date, the Trustee paid the relevant Redemption Price to the
holders holders
of 2028these Notesnotes appearing on the books and records of the Trustee on the Redemption Date. The 2028 Notesnotes ceased to represent the right to payment of principal and interest upon
the payment to the holders of 2028the Notesnotes by the Trustee representing
the Redemption Price. The Company received all necessary regulatory approvals for the redemption of the
2028these Notes.notes.
On September 29, 2020, the Company issued $50.0 million in subordinated notes. Proceeds were reduced by approximately $926 thousand in debt issuance costs. The notes have a maturity
date of September 2030 with a fixed rate of 4.50% for the first five years. After the expiration of the fixed rate period, the notes will reset quarterly at a variable rate equal to the then current three-month Secured Overnight
Financing Rate, as published by the Federal Reserve Bank of New York, plus 438 basis points. These notes pay interest semi-annually, are unsecured, and may be called by the Company at any time after the remaining
maturity is five years or less. Additionally, these notes are intended to qualify for Tier 2 capital treatment, subject to regulatory limitations.
As of December 31, 2024,2025, the total amount of subordinated debt outstanding was $64.1 million, less approximately $139 thousand of remaining debt issuance costs for a total balance of $64.0$14.1 million.
The chart below indicates certain information, as of December 31, 2024,2025, about each of the statutory trusts and the junior subordinated deferrable interest debentures, including the date the
junior junior
subordinated deferrable interest debentures were issued, outstanding amounts of trust preferred securities and junior subordinated deferrable interest debentures, the maturity date of the junior subordinated deferrable interest debentures,
and the
interest rates on the junior subordinated deferrable interest debentures and the investment banker.debentures.
Our liquidity position is supported by management of liquid assets and access to alternative sources of funds. Our liquid assets include cash,
interest-bearing deposits in correspondent banks,
federal funds sold, and fair value of unpledged investment securities. Other available sources of liquidity include wholesale deposits, and additional borrowings from correspondent banks, FHLB
advances, and the FRB discount window. WeAt December
31, 2025, the Bank had available borrowingthe capacity to borrow funds from the FHLB and the Federal Reserve discount window of up to approximately $1.77 billion through the FHLB, the FRB’s discount window at December 31, 2024, which includes the unused line with the FHLB of $1.11$1.27 billion and
the unused$659.7 linemillion, with the FRB of $654.0 million.respectively. Additionally, we have uncollateralized lines with multiple banks
totaling $140$140.0 million at December 31, 2024.2025. These lines are
not guaranteed and we are not placing reliance on them.
Total stockholders’ equity increased to $493.8 million as of December 31, 2025, compared to $438.9 million as of December 31, 2024, compared to $407.1 million as of December 31, 2023.2024. The increase from December 31, 20232024 was primarily the result
of of
$49.7$58.5 million in net income,income and an increase of $12.9 million in accumulated other comprehensive income (“AOCI”) related to fair value changes in securities available for sale and related fair value hedges, partially offset by an increase in other comprehensive loss of $8.9 million, $9.2$10.1 million in
dividends paid, and repurchases of common stock of $1.3$8.5 million for the year ended December 31, 2024.2025.
On September 17, 2019, the federal banking agencies jointly finalized a rule to be effective January 1, 2020 and intended to simplify the regulatory capital requirements described above for qualifying community banking organizations that opt into the Community Bank Leverage Ratio (“CBLR”) framework, as required by Section 201 of the EGRRCPA. The final rule became effective on January 1, 2020, and the CBLR framework became available for banks to use beginning with their March 31, 2020 Call Reports. Under the final rule, if a qualifying community banking organization opts into the CBLR framework and meets all requirements under the framework, it will be considered to have met the well-capitalized ratio requirements under the “prompt corrective action” regulations described above and will not be required to report or calculate risk-based capital. In order to qualify for the CBLR framework, a community banking organization must have a tier 1 leverage ratio of greater than 9%, less than $10 billion in total consolidated assets, and limited amounts of off-balance sheet exposures and trading assets and liabilities. In November 2025, the federal bank regulatory agencies proposed changes to the CBLR framework intended to encourage broader adoption, including reducing the required leverage ratio from 9% to 8%; however, the proposed rule has not yet been finalized. Although the Company and the Bank are qualifying community banking organizations, the Company and the Bank have elected not to opt in to the CBLR framework at this time and will continue to follow the Basel III capital requirements as described above.
The CompanyWe repurchased stock in accordance with its stock repurchase programs during 20242025 and 2023.2024. In 2024,2025, we repurchased 53,799 shares of
common stock for a total of $1.3 million. In 2023, we repurchased 685,638259,046 shares of common stock for a total of $17.8$8.5 million. In 2024, we
repurchased 53,799 shares of common stock for a total of $1.3 million See Part II, Item 5, “Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of
Equity Securities,” of this Report for further information.
Allowance for Credit Losses. The allowance for credit
losses includes credit lossesLosses on loans as well as the off-balance-sheet credit exposure, which is reported as a component of other liabilities on our consolidated balance sheets.Loans. The ACL for loans is established for future expected credit losses
through a provision for credit losses charged
to earnings. Expected losses are calculated using comparable and quantifiable information both internal and external about past events, including historical experience, current conditions, and
reasonable and supportable forecasts that affect the
collectability of the reported amount. Expected credit losses are estimated over the contractual term of the loans and adjusted for expected prepayments when appropriate. The ACL for loans is
affected by charge-offs, recoveries and the provision
for credit losses on loans.
Mortgage Servicing Rights. When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the consolidated
statement of comprehensive income (loss) effect recorded in net gain on sale of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model administered
by a third-party that calculates present value of estimated future servicing income. The fair values of servicing rights are subject to significant fluctuations in valuation model assumptions as a result of changes in estimated and actual
prepayment speeds and default rates and losses. Estimating prepayment speed and/or discount rates within ranges that market participants would use in determining the fair value of the MSR requires significant management judgment.
What changed in the latest 10-Q
Risk Factors
In evaluating an investment in any of our securities, investors should consider carefully, among other things, information under the heading “Cautionary Notice Regarding Forward-Looking Statements” in Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of this Form 10-Q and the risk factors previously disclosed under the heading “Risk Factors” in Part I, Item 1A of our 2025 Annual Report on Form 10-K. Management believes there have been no material changes in the risk factors disclosed by the Company in Part I, Item 1A, “Risk Factors,” of the 2025 Annual Report on Form 10-K. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
Largest changes
“Various information shown elsewhere in this Report will assist in the understanding of how well the Company is positioned to react to changing interest rates and inflationary trends. In particular, additional information related to the Company’s interest rate-sensitive assets and liabilities is contained in this Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Report under the heading “Interest Rate Sensitivity and Market Risk.””see in full comparison
The Company’s asset and liability structure is substantially different from that of an industrial company in that virtually all assets and liabilities of the Company are monetary in nature. Management believes the impact of inflation on financial results depends upon the Company’s ability to react to changes in interest rates and by such reaction, reduce the inflationary impact on performance. Interest rates do not necessarily move in the same direction, or at the same magnitude, as the prices of other goods and services. However, other operating expenses do reflect general levels of inflation. Management seeks to manage the relationship between interest rate-sensitive assets and liabilities in order to protect against wide net interest income fluctuations, including those resulting from inflation. Various information shown elsewhere in this Report will assist in the understanding of how well the Company is positioned to react to changing interest rates and inflationary trends. In particular, additional information related to the Company’s interest rate-sensitive assets and liabilities is contained in this Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Report under the heading “Interest Rate Sensitivity and Market Risk.”see in full comparison
“The total aggregate consideration delivered to holders of BOH common stock was approximately 2.8 million shares of SPFI common stock. The issuance of shares of SPFI common stock in connection with the Merger was registered under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to a Registration Statement on Form S-4 (File No. 333-293068) initially filed by SPFI with the U.S. Securities and Exchange Commission (the “SEC”) on January 30, 2026 and declared effective by the SEC on February 18, 2026. …”see in full comparison
“Net interest income for the six months ended June 30, 2026 was $93.2 million, compared to $81.0 million for the six months ended June 30, 2025, an increase of $12.2 million, or 15.0%, and was comprised of an increase of $13.6 million in interest income, partially offset by an increase of $1.4 million in interest expense. The growth in interest income was attributable to increases of $12.3 million in loan interest income and $2.0 million in interest income on other interest-earning assets. …”see in full comparison
Net interest income for the three months endedsee in full comparisonMarchJune31,30, 2026 was$42.9$50.3 million, compared to$38.5$42.5 million for the three months endedMarchJune31,30, 2025, an increase of$4.3$7.8 million, or11.2%.18.5%,The increase in net interest incomeand was comprised of an increase of$2.7$10.9million, or 4.5%,million in interestincomeincome,andpartiallyaoffsetdecreaseby an increase of$1.6$3.0million, or 7.5%,million in interest expense. The growth in interest income waspredominatelyprimarily attributable toincreasesan increase of$2.1$10.2 million in loan interestincome and $1.0 million in interest on other interest-earning assets. The increase in loan interest incomeincome, which wasmainlyadueresulttoof growth of$55.6$683.0 million in average loansoutstandingoutstanding,andpartially offset by a16decrease of 18 basispoint increasepoints in the yield onloans.loans due to a decline in market interest rates. The $3.0 million increase in interestincome on other interest-earning assetsexpense was primarilyduerelated to an increase of$170.0$709.2 million intheaveragebalanceinterest-bearingof these assets,deposits, partially offset by adeclinedecrease of5317 basis points in therelatedinterestyieldrateduepaid on these deposits over the same period in 2025. Additionally, average noninterest-bearing demand deposits increased $112.0 million for the three months ended June 30, 2026 as compared to thedecreasesthree months ended June 30, 2025. The increase intheloansfederalandfundsdepositsratewasduringlargely attributable to thelastBOHfour months of 2025.acquisition.
“The provision for credit losses for the six months ended June 30, 2026 was $610 thousand, compared to $2.9 million for the six months ended June 30, 2025. The decrease in provision of $2.3 million, as noted above, was largely attributable to the increase in specific reserves, and increase in loan balances, and several credit quality downgrades that occurred during the first two quarters of 2025.”see in full comparison
Full comparison: every changed paragraph (78)
The following discussion and analysis of our financial condition and results of operations for the periods covered by this Quarterly Report on Form 10-Q (this “Form 10-Q”) and
should be read in conjunction with our consolidated financial statements and the accompanying notes thereto included in this Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report on Form
10-K”) filed with the U.S. Securities and Exchange Commission (the “SEC”) pursuant to Rule 424(b) of the Securities Act of 1933, as amended (the “Securities Act”), on March 5, 2026. Unless we state otherwise or the context otherwise requires,
references in this Form 10-Q to “we,” “our,” “us” and “the Company” refer to South Plains Financial, Inc., a Texas corporation, our wholly-owned banking subsidiary, City Bank, a Texas banking associationassociation, and our other consolidated subsidiaries.
References in this Form 10-Q to the “Bank” refer to City Bank.
On April 1, 2026, SPFI acquired BOH Holdings, Inc., a Texas corporation (“BOH”), the bank holding company for Bank of Houston, in an all-stock transaction through the merger of BOH with and into SPFI, with SPFI
surviving the merger (the “Merger”). Immediately
after the Merger, Bank of Houston, a Texas state banking association and wholly-owned subsidiary of BOH, merged with and into City Bank, with City Bank surviving the merger. PursuantAt March 31, 2026, BOH had approximately $685.0 million in assets,
$631.9 million in total gross loans, and $595.6 million in deposits. The total aggregate consideration delivered to the terms
of the Agreement and Plan of Reorganization, dated December 1, 2025 (the “Reorganization Agreement”), each shareholders of BOH common stock held immediately prior to the effective time of the Merger was convertedapproximately into2.8 the right to receive, without
interest, 0.1925million shares of SPFI common stock, as adjusted pursuant to the Reorganization Agreement, plus cash, without interest, in lieu of any fractional shares (collectively, the “Per Share Merger Consideration”).stock.
For further information regarding the acquisition of BOH, see Note 2 in the Notes to the Consolidated Financial Statements included in Item 1 of this Report.
The total aggregate consideration delivered to holders of BOH common stock was approximately 2.8 million shares of SPFI common stock. The issuance of shares of SPFI common stock in connection with the Merger was
registered under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to a Registration Statement on Form S-4 (File No. 333-293068) initially filed by SPFI with the U.S. Securities and Exchange Commission (the “SEC”) on January
30, 2026 and declared effective by the SEC on February 18, 2026. At March 31, 2026, BOH had $685.0 million in assets, $631.9 million in total gross loans, and $595.6 million in deposits.
We had net income of $14.5$19.0 million, or $0.85$0.96 per diluted common share, for the three months ended MarchJune 31,30, 2026, compared to net income of $12.3$14.6 million, or $0.72$0.86 per diluted common share,share for the
three months ended MarchJune 31,30, 2025. Return on average equity (annualized) was 11.81%12.17% and return on average assets (annualized) was 1.31%1.44% for the three months ended MarchJune 31,30, 2026, compared to 11.30%13.05% and 1.16%,1.34%, respectively, for the three months
ended MarchJune 31,30, 2025. TheDetails increaseof the changes in net income of $2.3 million was primarily the resultvarious ofcomponents anare increasefurther ofdiscussed $4.3 million in net interest income and $670 thousand in noninterest income, partially offset by an increase of $2.5 million in noninterest
expense.below.
We had net income of $33.5 million, or $1.82 per diluted common share for the six months ended June 30, 2026, compared to net income of $26.9 million, or $1.58 per diluted common share for the six months ended June 30, 2025. Return on average equity (annualized) was 12.02% and return on average assets (annualized) was 1.38% for the six months ended June 30, 2026, compared to 12.19% and 1.25%, respectively, for the six months ended June 30, 2025. Details of the changes in the various components are further discussed below.
The following tabletables presents,present, for the periods indicated, information about: (i) weighted average balances, the total dollar amount of interest income from interest-earning assets and the resultant
average yields; (ii) average balances, the total dollar amount of interest expense on interest-bearing liabilities and the resultant average rates; (iii) net interest income; (iv) the interest rate spread; and (v) the net interest margin. For
purposes of this table, interest income, net interest margin and net interest spread are shown on a fully tax-equivalent basis.
Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in
average interest rates. The following tabletables setsset forth the effects of changing rates and volumes on our net interest income during the period shown. Information is provided with respect to (i) effects on interest income attributable to changes in
volume (change in volume multiplied by prior rate) and (ii) effects on interest income attributable to changes in rate (changes in rate multiplied by prior volume). Change applicable to both volume and rate have been allocated to volume.
Net interest income for the three months ended MarchJune 31,30, 2026 was $42.9$50.3 million, compared to $38.5$42.5 million for the three months ended MarchJune 31,30, 2025, an increase of $4.3$7.8 million, or 11.2%.18.5%, The
increase in net interest incomeand was
comprised of an increase of $2.7$10.9 million, or 4.5%,million in interest incomeincome, andpartially aoffset decreaseby an increase of $1.6$3.0 million, or 7.5%,million in interest expense. The growth in interest income was predominatelyprimarily attributable to increasesan increase of
$2.1 $10.2 million in loan interest income and $1.0 million in interest on other interest-earning assets. The increase in loan interest incomeincome,
which was mainlya dueresult toof growth of $55.6$683.0 million in average loans outstandingoutstanding, andpartially offset by a 16decrease of 18 basis point increasepoints in the
yield on loans.loans due to a decline in market interest rates. The $3.0 million increase in interest income on other interest-earning assetsexpense was
primarily duerelated to an increase of $170.0$709.2 million in the average balanceinterest-bearing of these assets,deposits, partially offset by a declinedecrease of 5317 basis points in the relatedinterest yieldrate duepaid on these deposits over the same period in 2025. Additionally, average
noninterest-bearing demand deposits increased $112.0 million for the three months ended June 30, 2026 as compared to the
decreases three months ended June 30, 2025. The increase in theloans federaland fundsdeposits ratewas duringlargely attributable to the lastBOH four months of 2025.acquisition.
The $1.6 million decrease in interest expense for the three months ended March 31, 2026 was primarily related to a 33 basis point decrease in the rate paid on interest-bearing liabilities over the same period in 2025
and a reduction of $592 thousand in interest expense as a result of the redemption of $50 million in subordinated debt securities on September 30, 2025, partially offset by growth of $159.9 million in interest-bearing deposits in the compared
periods.
For the three months ended MarchJune 31,30, 2026, net interest margin and net interest spread were 4.04%4.00% and 3.18%,3.15%, respectively, compared to 3.81%4.07% and 2.87%,3.11%, respectively, for the same period in 2025,
which which
reflects the changes in interest income and interest expense discussed above.
Net interest income for the six months ended June 30, 2026 was $93.2 million, compared to $81.0 million for the six months ended June 30, 2025, an increase of $12.2 million, or 15.0%, and was comprised of an increase of $13.6 million in interest income, partially offset by an increase of $1.4 million in interest expense. The growth in interest income was attributable to increases of $12.3 million in loan interest income and $2.0 million in interest income on other interest-earning assets. The increase in loan interest income resulted from growth of $369.3 million in average loans outstanding as the yield on loans remained flat. The increase in interest income on other interest-earning assets was primarily due to an increase of $186.6 million in average other interest-bearing assets, partially offset by a decline of 59 basis points in the interest rate paid on those assets. The $1.4 million increase in interest expense was primarily related to an increase of $434.5 million in average interest-bearing deposits, partially offset by a 23 basis point decrease in the rate paid on these deposits over the same period in 2025. The increase in interest expense on deposits was partially offset by a reduction of $1.3 million in interest expense as a result of the redemption of $50 million in subordinated debt securities on September 30, 2025. The increase in loans and deposits was largely attributable to the BOH acquisition.
For the six months ended June 30, 2026, net interest margin and net interest spread were 4.02% and 3.17%, respectively, compared to 3.94% and 2.99%, respectively, for the same period in 2025, which reflects the changes in interest income and interest expense discussed above.
Credit risk is inherent in the business of making loans. We establish an allowance for credit losses (“ACL”) through charges to earnings, which are shown in the consolidated statements of
comprehensive income as the provision for credit losses. Credit losses on loans are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. The provision for credit losses is determined by
conducting a quarterly evaluation of the adequacy of our ACL and charging the shortfall or excess, if any, to the current quarter’s expense. This has the effect of creating variability in the amount and frequency of charges to our earnings. The
provision for credit losses and the amount of allowance for each period are dependent upon many factors, including loan growth, net charge-offs,charge offs, changes in the composition of the loan portfolio, delinquencies, management’s assessment of the
quality quality
of the loan portfolio, the valuation of problem loans and the general economic conditions in our market areas.
The provision for credit losses for the three months ended June 30, 2026 was $350 thousand, compared to $2.5 million for the three months ended June 30, 2025. The decrease in provision of $2.2 million was primarily attributable to the increase in specific reserves, and increase in loan balances, and several credit quality downgrades that occurred during the second quarter of 2025.
The provision for credit losses for the six months ended June 30, 2026 was $610 thousand, compared to $2.9 million for the six months ended June 30, 2025. The decrease in provision of $2.3 million, as noted above, was largely attributable to the increase in specific reserves, and increase in loan balances, and several credit quality downgrades that occurred during the first two quarters of 2025.
The provision for credit losses for the three months ended March 31, 2026 was $260 thousand, which was comparable to $420 thousand for the three months ended March 31, 2025.
Noninterest income for the three months ended MarchJune 31,30, 2026 was $11.3$14.1 million, compared to $10.6$12.2 million for the three months ended MarchJune 31,30, 2025, an increase of $670$2.0 thousand,million, or 6.3%.16.3%. Significant
changes in the components of noninterest income are detailed below.
Service charges on deposit accounts - Income from service charges on deposit accounts increased $268 thousand, or 12.8%, for the three months ended June 30, 2026 as compared to the same period in 2025. The increase was largely attributable to continued focus on deposit growth and the BOH acquisition.
Mortgage banking activities - Income from mortgage banking activities increased $1.8 million, or 85.4%, to $3.9 million for the three months ended March 31,
2026 from $2.1 million for the three months ended March 31, 2025. This increase was primarily due to a $250 thousand positive fair value adjustment to our mortgage servicing rights portfolio in the first quarter of 2026 compared to a negative fair
value adjustment of $1.6 million in the first quarter of 2025. The fair value of the mortgage servicing rights portfolio is affected by movements in market interest rates, which increased during the first quarter of 2026 as compared to decreasing
during the first quarter of 2025.
OtherBank incomecard services and interchange fees - OtherIncome incomefrom bank card services and interchange fees decreasedincreased $1.3$339 million,thousand, or 69.1%,9.0%, for the three months ended
June March 31, 2026 as compared to the same period in
2025. The decrease was primarily the result of a loss of $801 thousand in a SBIC investment, due to negative performance of one of the companies in the fund, and a decrease of $125 thousand in gain on sales of fixed assets, all in the first quarter
of30, 2026 as compared to the same period in 2025. The increase was primarily the result of an increased focus on business purchase card activity during the three months ended June 30, 2026 compared to the same period in 2025, in addition to
new activity as a result of the BOH acquisition.
Mortgage banking activities - Income from mortgage banking activities increased $1.2 million, or 34.4%, to $4.8 million for the three months ended June 30, 2026 from $3.6 million for the three months ended June 30, 2025. This increase was partially the result of a $515 thousand positive fair value adjustment to our mortgage servicing rights portfolio in the second quarter of 2026 compared to a negative fair value adjustment of $156 thousand in the second quarter of 2025. The fair value of the mortgage servicing rights portfolio is affected by movements in market interest rates, which increased during the second quarter of 2026 as compared to decreasing during the second quarter of 2025. Additionally, there was an increase in other mortgage income related to an increase in originations of loans held for sale in the second quarter of 2026 as compared to the same period of 2025.
Noninterest income for the six months ended June 30, 2026 was $25.4 million, compared to $22.8 million for the six months ended June 30, 2025, an increase of $2.6 million, or 11.6%. Significant changes in the components of noninterest income are detailed below.
Mortgage banking activities - Income from mortgage banking activities increased $3.0 million, or 53.3%, to $8.8 million for the six months ended June 30, 2026 from $5.7 million for the six months ended June 30, 2025. This increase was mainly the result of a $765 thousand positive fair value adjustment to our mortgage servicing rights portfolio for the six months ended June 30, 2026 compared to a negative fair value adjustment of $1.7 million for the same period in 2025. The fair value of the mortgage servicing rights portfolio is affected by movements in market interest rates, which increased during the first two quarters of 2026 as compared to decreases in the same period within 2025. Additionally, there was an increase in other mortgage income related to an increase in originations of loans held for sale in the first two quarters of 2026 as compared to the same period in the prior year.
Other income and fees - Other income and fees decreased $1.3 million, or 37.6%, for the six months ended June 30, 2026 as compared to the same period in 2025. The decrease was primarily the result of a decrease of $497 thousand in income from SBIC investments and a decrease of $224 thousand on gains on sales of fixed assets.
Noninterest expense for the three months ended MarchJune 31,30, 2026 was $35.5$39.9 million compared to $33.0$33.5 million for the three months ended MarchJune 31,30, 2025, an increase of $2.5$6.3 million, or 7.6%.18.8%. Significant
changes in the components of noninterest expense are detailed below. There was a total of $1.5$1.1 million inof acquisition related expenses recorded in the firstthree quartermonths ended June 30, 2026. This total was comprised of 2026.$708 thousand in personnel
expenses and $343 thousand in data conversion expenses.
Salaries and employee benefits - Salaries and employee benefits increased $713$3.8 thousand,million, or 3.7%,19.3%, from $19.4$19.8 million for the three months ended MarchJune 31,30, 2025
to $20.2$23.5 million
for the three months ended MarchJune 31,30, 2026. This increase was primarily driven by personnel expenses related to the BOH acquisition - both recurring core and one-time expenses, annual salary adjustments, which became effective in January of 2026, and based on new lender hires during the last twelve
months.
Occupancy and equipment, net - Occupancy expenses increased $358 thousand or 9.0%, from $4.0 million for the three months ended June 30, 2025 to $4.3 million for the three months ended June 30, 2026. This increase was primarily related to new costs related to the acquisition of BOH.
IT and data services - IT and data services increased $787 thousand or 66.6%, to $2.0 million for the three months ended June 30, 2026 from $1.2 million for the three months ended June 30, 2025. This increase was largely related to the acquisition of BOH, in addition to rising software costs and costs related to the implementation of a new loan origination system.
ProfessionalOther servicesexpenses - ProfessionalOther servicesexpenses increased $1.2$1.1 million, or 70.8%27.0%, from $1.7$4.0 million for the three months ended MarchJune 31,30, 2025 to $3.0$5.2 million for
the three
months ended MarchJune 31,30, 2026. This increase was primarily driventhe by $1.2 millionresult of acquisitionincreases for data conversion expenses related expenses into the firstBOH quarteracquisition and new core expenses after the acquisition of 2026.BOH.
Noninterest expense for the six months ended June 30, 2026 was $75.4 million, compared to $66.6 million for the six months ended June 30, 2025, an increase of $8.8 million, or 13.2%. Significant changes in the components of noninterest expense are detailed below. There was a total of $2.6 million of acquisition related expenses recorded in the six months ended June 30, 2026. This total was comprised of $708 thousand in personnel expenses, $1.2 million in professional services expense, and $693 thousand in data conversion expenses.
Salaries and employee benefits - Salaries and employee benefits increased $4.5 million, or 11.6%, from $39.1 million for the six months ended June 30, 2025 to $43.7 million for the six months ended June 30, 2026. This increase was primarily driven by personnel expenses related to the BOH acquisition - both recurring core and one-time expenses, annual salary adjustments and new lender hires during the last twelve months.
Professional services - Professional services increased $1.2 million, or 33.3% from $3.6 million for the three months ended June 30, 2025 to $4.8 million for the three months ended June 30, 2026. This increase was driven by the $1.2 million of acquisition related expenses in the first quarter of 2026.
IT and data services - IT and data services increased $1.0 million, or 42.8%, from $2.3 million for six months ended June 30, 2025 to $3.3 million for the six months ended June 30, 2026. The increase is primarily a result of the acquisition of BOH, additionally, there has been continued rising cost of technology services and new costs related to the implementation of a new loan origination system.
Other expenses - Other expenses increased $1.3 million, or 15.5%, from $8.2 million for the six months ended June 30, 2025 to $9.5 million for the six months ended June 30, 2026. This was primarily the result of increases for data conversion expenses related to the BOH acquisition and new core expenses after the acquisition of BOH.
Our total assets increased $165.9$910.7 million, or 3.7%,20.3%, to $4.65$5.39 billion at MarchJune 31,30, 2026, compared to $4.48 billion at December 31, 2025. Our loans held for investment decreasedincreased $41.0$626.9 million, or
19.9%, 1.3%,
to $3.10$3.77 billion at MarchJune 31,30, 2026, compared to $3.14 billion at December 31, 2025. Our securities portfolio increaseddecreased $35.3$12.1 million, or 6.2%,2.1%, to $602.9$555.4 million at MarchJune 31,30, 2026, compared to $567.5 million at December 31, 2025. Total
deposits deposits
increased $153.5$766.5 million, or 4.0%,19.8%, to $4.03$4.64 billion at MarchJune 31,30, 2026, compared to $3.87 billion at December 31, 2025.
Loans held for investment decreasedincreased $41.0$626.9 million, or 1.3%,19.9%, to $3.10$3.77 billion at MarchJune 31,30, 2026, compared to $3.14 billion at December 31, 2025. The declineincrease in loans occurredwas primarily ina multi-family,result of an
seasonalincrease agricultural-relatedof loans,$631.9 and restaurant/retail loans, offset by increasesmillion in commercialloans landfrom andthe developmentBOH loans.acquisition.
The following table shows the contractual maturities of our loans held for investment portfolio at MarchJune 31,30, 2026:
The following table shows the distribution between fixed and adjustable interest rate loans for maturities greater than one year as of MarchJune 31,30, 2026:
At MarchJune 31,30, 2026, there was $1.6$1.94 billion in adjustable rate loans, with $904.0$1.23 millionbillion of these loans that mature or reprice in the next twelve months. Of these loans that mature or reprice in the
next twelve months, $632.2$695.8 million will reprice immediately upon changes in the underlying index rate, with the remaining $271.8$532.9 million being subject to rate ceilings, floors above the current index,index or a future repricing date. The Wall Street Journal prime rate is the predominate index used by the Bank.
The Bank is primarily involved in real estate, commercial, agricultural and consumer lending activities with customers throughout Texas and Eastern New Mexico. We have a collateral concentration, as
72.4%74.6% of our loans were secured by real property as of MarchJune 31,30, 2026, compared to 71.6% as of December 31, 2025. We believe that these loans are not concentrated in any one single property type and that they are geographically dispersed
throughout throughout
the areas we serve. Although the Bank has diversified portfolios, its debtors’ ability to honor their contracts is substantially dependent upon the general economic conditions of the markets in which it operates, which consist
primarily of
agribusiness, wholesale/retail, oil and gas and related businesses, healthcare industries and institutions of higher education. Commercial real estate loans and residential construction loans represent 37.3%39.2% of loans held for
investment as of June 30, 2026 and represented 37.0% of loans held for investment as of March
31, 2026 and represented 37.0% as of December 31, 2025. Further, 96%95% of the total dollar amount of these loans are secured by collateral located in the state of Texas.
Commercial real estate loans decreasedincreased $11.7$267.9 million, or 1.1%,25.2%, to $1.05$1.33 billion as of MarchJune 31,30, 2026 from $1.06 billion as of December 31, 2025. The decreaseincrease was primarily drivendue byto aincreases decreasebroadly
across of
$31.0this millionsegment inrelated multi-familyto loans,the partiallyBOH offset by an increase of $22.2 million in commercial land development loans.acquisition.
Commercial general loans decreased $4.7 million, or 0.7%, to $654.6 million as of March 31, 2026 from $659.3 million as of December 31, 2025. The decrease was primarily due to a decrease of $14.3
million in restaurant/retail loans, partially offset by an increase of $9.7 million in loans for goods and services.
Commercial specialized loans decreasedincreased $24.5$20.0 million, or 6.0%,4.9%, to $384.9$429.4 million as of MarchJune 31,30, 2026 from $409.4 million as of December 31, 2025. ThisThe decreaseincrease was primarily due to increases in loans to finance and
investment companies as a result of the BOH acquisition, partially offset by net repayments of
$24.4 $14.0 million in seasonal agricultural-related loans.
Consumer. We utilize a computer-based credit scoring analysis to supplement our policies and procedures in underwriting consumer loans. Our loan policy
addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimize
our risk. Residential real estate loans are included in consumer loans. We generally require mortgage title insurance and hazard insurance on these residential real estate loans. All consumer loans are generally dependent on the risk
characteristics of the borrower’s ability to repay the loan, a consideration of the debt to income ratio, employment and income stability, the loan-to-value ratio, and the age, condition and marketability of the collateral.
ConsumerCommercial and othergeneral loans decreasedincreased $3.5$168.1 million, or 0.4%,25.5%, to $907.6$827.5 million as of MarchJune 31,30, 2026 from $911.1$659.3 million as of December 31, 2025. AsThe of March 31, 2026, our consumer loan portfolioincrease was primarily due to increases broadly across this
comprisedsegment ofrelated $589.0to millionthe inBOH 1-4 family residential loans, $256.1 million in auto loans, and $62.6 million in other consumer loans.acquisition.
Consumer. We utilize a computer-based credit scoring analysis to supplement our policies and procedures in underwriting consumer loans. Our loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimize our risk. Residential real estate loans are included in consumer loans. We generally require mortgage title insurance and hazard insurance on these residential real estate loans. All consumer loans are generally dependent on the risk characteristics of the borrower’s ability to repay the loan, a consideration of the debt-to-income ratio, employment and income stability, the loan-to-value ratio, and the age, condition and marketability of the collateral.
Consumer and other loans increased $127.8 million, or 14.0%, to $1.04 billion as of June 30, 2026, from $911.1 million as of December 31, 2025. The growth in these loans was primarily a result of an increase of $124.2 million in residential mortgage loans, mostly related to the BOH acquisition. As of June 30, 2026, our consumer loan portfolio was comprised of $714.0 million in 1-4 family residential loans, $263.8 million in auto loans, and $61.1 million in other consumer loans.
Construction loans increased $3.3$43.1 million, or 3.3%,43.1%, to $103.4$143.2 million as of MarchJune 31,30, 2026 from $100.1 million as of December 31, 2025. This increase was primarily due to the acquisition of BOH.
The commercial real estate and construction categories comprise the Company’s nonowner-occupied real estate loans. Total nonowner-occupied real estate loans were $1.16$1.48 billion at MarchJune 31,30, 2026 and
$1.16 billion at December 31, 2025. Nonowner-occupied commercial real estate loans are made up of income-producing commercial real estate property loans and construction, acquisition, and development property loans. As of MarchJune 31,30, 2026, total
income-producing commercial real estate property loans totaled $769.1$993.6 million and was comprised of $198.6$229.8 million of multi-family property loans, $181.8$277.2 million of retail property loans, $140.9$182.9 million of office property loans, $149.7 million$160.4 in
industrial and warehouse loans, $41.8$45.6 million in storage facilities loans, $41.5 million in hospitality loans, and $56.3$56.2 million in other property loans. Other property loans include types such as mini-storageRV parks and convenience stores. As of MarchJune 31, 30,
2026, total construction, acquisition,
and development property loans totaled $387.3$482.2 million and was comprised of $103.4$143.8 million in residential construction property loans and $283.9$338.4 million of commercial construction and other land development
loans. The weighted average loan-to-value
of income-producing nonowner-occupied commercial real estate loans was approximately 58%57% at MarchJune 31,30, 2026. The weighted average loan-to-value of nonowner-occupied office commercial real estate loans was
approximately 57%56% at MarchJune 31,30, 2026.
Owner occupiedOwner-occupied commercial real estate loans totaled $416.7$538.9 million at MarchJune 31,30, 2026 and $419.0 million at December 31, 2025.
The ACL for loans was $44.8$53.1 million at MarchJune 31,30, 2026, compared to $45.1 million at December 31, 2025, aan decreaseincrease of $309$7.9 thousand,million, or 0.7%.17.6%. The decreaseincrease iswas largely driven by $8.5 million of ACL recorded for loans acquired in the resultBOH
acquisition ofand a $350 thousand provision for ACL being recorded during the six months ended June 30, 2026, partially offset by net charge-offs andof no
provision$878 for credit losses on loansthousand during the first quarter of 2026.period. The Company continues to closely monitor credit quality in light
of the ongoing economic uncertainty caused by, among other factors, the uncertain impacts of tariffs, sanctions
and other trade policies of the United States and its global trading counterparts, the prolonged elevated interest rate environment
and the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the
United States and our market areas. Accordingly, additional provisions for credit losses may be necessary in future periods.
Net charge-offs totaled $309$569 thousand and were 0.04%0.06% (annualized) of average loans outstanding for the three months ended MarchJune 31,30, 2026, comparedwhich is comparable to $519$458 thousand and 0.07%0.06% (annualized)
for the three months ended June 30, 2025. Net charge-offs totaled $878 thousand and were 0.05% (annualized) of average loans outstanding for the six months ended June 30, 2026, which is comparable to $977 thousand and 0.06% (annualized) for the
six three
months ended MarchJune 31,30, 2025. The decreaseallowance infor netcredit charge-offs in the first quarter of 2026 was primarily the result of a $283 thousand recoverylosses on a 1-4 family residential loan in the first quarter of 2026. The ACL for loans as a percentage of loans
held for investment was 1.44%1.41% at MarchJune 31,30, 2026 and 1.44% at December 31, 2025.
At MarchJune 31,30, 2026, our total nonaccrual loans were $3.7$6.9 million, or 0.12%0.18% of total loans held for investment, aswhich comparedis comparable to $7.1 million, or 0.22% of total loans held for investment, at
December 31, 2025. TheseAny loans within this amount that exceeded $250 thousand were specifically analyzed and specific valuation allowances were established as necessary and included in the ACL for loans as of March 31, 2026 to cover any probable
loss. The decrease of $3.4 million is primarily the result of a $3.9 million loan on nonaccrual status at December 31, 2025 being repaid in full during the first quarter of 2026. This decrease was partially offset by other loans being
placed on nonaccrual status during the first quarter of 2026.
Nonperforming loans were $9.5 million at June 30, 2026, which is comparable to $9.8 million at December 31, 2025.
Nonperforming loans were $5.1 million at March 31, 2026 and $9.8 million at December 31, 2025. This decrease is mainly due to the nonaccrual changes noted above and a reduction
of $1.4 million in loans past due 90 days or more.
Total securities at MarchJune 31,30, 2026 were $602.9$555.4 million, representing ana increasedecrease of $35.3$12.1 million, or 6.2%,2.1%, compared to $567.5 million at December 31, 2025. The increasedecrease was primarily due to $37.0
$21.0 million in purchases,
maturities, net of maturities,purchases, prepayments and callscalls, partially offset by $6.8 million in securities acquired from BOH, and a $1.1$3.2 million increase in the fair value of securities available for sale at MarchJune 31,30, 2026 as compared to December 31,
2025.
Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. At MarchJune 31,30, 2026, the fair value of the Company’s securities available for sale securities was $71.1$66.9
million lower than the amortized cost. At MarchJune 31,30, 2026, the Company evaluated whether the decline in fair value has resulted from credit losses or other factors. Within this evaluation, management considers the extent to which fair value is less
than amortized cost, any changes to the rating of the security by rating agency, and adverse conditions specifically related to the security, among other factors. Based on management’s evaluation no unrealized losses on securities were determined
to be due to credit loss. Additionally, we anticipate full recovery of amortized cost with respect to these securities by maturity, or sooner in the event of a more favorable market interest rate environment. We do not intend to sell these
securities and it is not probable that we will be required to sell them before recovery of the amortized cost basis, which may be at maturity, thus no ACL or losses have been recognized or realized in the consolidated financial statements for
securities in the portfolio.
The following table sets forth certain information regarding contractual maturities and the weighted average yields of our investment securities as of the datedates presented. Expected maturities may
differ from contractual maturities if borrowers have the right to call or prepay an obligation with or without call or prepayment penalties.
Total deposits at MarchJune 31,30, 2026 were $4.03$4.64 billion, representing an increase of $153.5$766.5 million, or 4.0%,19.8%, compared to $3.87 billion at December 31, 2025. The increase insince depositsDecember 31, 2025 was mainlylargely due to
deposits acquired from BOH with additional organic growth and a
seasonal increase in public fund deposits in both noninterest-bearing and organicinterest-bearing growthdeposits occurring broadly across retail and commercial deposits, with growth in both noninterest-bearing and interest-bearing deposits. As of MarchJune 31,30, 2026, 25.6%
24.8% of total deposits were
comprised of noninterest-bearing demand accounts, 63.4%62.2% of interest-bearing non-maturity accounts and 11.0%13.0% of time deposits.
SPFI insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 1 Form 4 filing (1 insider, 1 trade date, 623 shares, about $0) and open-market sales in 4 filings (2 insiders, 7 trade dates, 290,000 shares, about $12.8M). Net open-market shares: -289,377 (purchases minus sales); net value about -$12.8M.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-08-04 | Campbell Richard D |
Open-market sale | 27,286 | $45.14 | $1.2M |
| 2026-08-03 | Campbell Richard D |
Open-market sale | 132,714 | $44.75 | $5.9M |
| 2026-07-28 | Stein James D. |
Open-market sale | 30,000 | $44.97 | $1.3M |
| 2026-07-28 | Stein James D. |
Open-market sale | 70,000 | $44.36 | $3.1M |
| 2026-06-18 | Griffith Curtis C |
Disposition to issuer | 300,000 | $41.39 | $12.4M |
| 2026-05-20 | Valles Noe G |
Grant/award | 623 | — | — |
| 2026-05-20 | Washburn Ladana R |
Grant/award | 623 | — | — |
| 2026-05-20 | Wargo Kyle R |
Grant/award | 623 | — | — |
| 2026-05-20 | Valles Noe G |
Open-market purchase | 623 | — | — |
| 2026-05-20 | Campbell Richard D |
Grant/award | 623 | — | — |
| 2026-05-19 | Stein James D. |
Open-market sale | 1,560 | $40.07 | $62.5K |
| 2026-05-18 | Stein James D. |
Open-market sale | 13,504 | $40.01 | $540.3K |
| 2026-05-11 | Stein James D. |
Open-market sale | 4,936 | $40.06 | $197.7K |
| 2026-05-08 | Stein James D. |
Open-market sale | 10,000 | $40.38 | $403.8K |
Well-known investors holding SPFI (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| Two Sigma Investments | 2026-06-30 | 99,122 | $4.3M | 0.0% | Reduced 43% |
| AQR Capital Management (Cliff Asness) | 2026-06-30 | 42,786 | $1.8M | 0.0% | Reduced 28% |
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 42,419 | $1.8M | 0.0% | Added 278% |
| Renaissance Technologies | 2026-06-30 | 21,357 | $920.2K | 0.0% | Reduced 72% |
| D. E. Shaw & Co. | 2026-06-30 | 15,736 | $678.0K | 0.0% | Reduced 8% |
| Point72 Asset Management (Steve Cohen) | 2026-06-30 | 6,499 | $272.3K | — | Sold out |
| Millennium Management (Israel Englander) | 2026-06-30 | 5,043 | $217.3K | 0.0% | Reduced 80% |