South Plains Reaffirms 2026 Loan Outlook, Prefers Loan-to-Deposit Ratio Around 85%

South Plains Financial reaffirmed its mid-single-digit loan growth outlook for 2026 on an Oct. 22 earnings call, while describing about 85% as its preferred loan-to-deposit ratio.

President Cory Newsom said management remained confident in meeting the full-year outlook. The call did not give a precise percentage range. “We remain confident in delivering our full-year loan growth guidance in the mid-single digits,” Newsom said.

Loans held for investment reached $3.83 billion at the Sept. 30 quarter-end, up $59.7 million from June 30, or 6.3% on an annualized basis. The quarter’s loan activity included an early $25 million payoff on a loan secured by the borrower’s deposit account. Deposits totaled $4.66 billion, an increase of $20.1 million from June 30.

Chief Financial Officer and Treasurer Steven Crockett described the desired loan-to-deposit level as “up to 85% or so.” The company did not state its quarter-end ratio. Its tax-equivalent net interest margin held at 4.00% from the previous quarter.

Net income rose to $20.8 million from $19 million in the second quarter. Diluted earnings per share increased to $1.06 from $0.96. South Plains’ third-quarter earnings results include the reported earnings figures.

The company completed its Bank of Houston integration and system conversion during the third quarter, with Houston bankers focused on business development. The CEO transition was announced in June: Curtis Griffith is scheduled to retire as CEO on Dec. 31 and remain chairman, while Newsom is scheduled to take over as CEO that day.