South Plains Financial, Inc. (NASDAQ:SPFI) has approved a new stock repurchase program that will allow the company to buy back up to $10 million of its common shares through open‑market purchases and privately negotiated transactions, with the program scheduled to run through February 23, 2027.
The decision follows a strong capital position, with the bank’s Common Equity Tier 1 ratio reported at 14.41%. The high ratio indicates ample regulatory capital and liquidity, giving SPFI the flexibility to fund the buyback without compromising its capital adequacy or future growth initiatives.
SPFI’s recent financial performance supports the buyback. In Q4 2025 the bank reported earnings per share of $0.90, slightly below the $0.96 reported in Q3 2025, while revenue hovered around $54 million in both quarters. The company has also maintained a consistent dividend increase for seven consecutive years, underscoring its commitment to returning value to shareholders. These factors together provide a solid foundation for the modest buyback program.
The program is part of SPFI’s broader strategy to balance shareholder returns with strategic flexibility. By limiting the program to $10 million, the bank signals confidence in its capital position while preserving resources for potential acquisitions, technology investments, and other growth opportunities. The buyback also aligns with the bank’s conservative risk profile and long‑term stability focus.
Overall, the announcement reflects SPFI’s confidence in its financial health and its intent to reward shareholders without compromising its ability to pursue future growth. The program’s modest size and clear regulatory compliance framework suggest a cautious yet proactive approach to capital allocation.
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