Oct 22, 2026 earnings call — Organic loan growth and CEO transition
Net income rose to $20.8 million and diluted EPS was $1.06 in the third quarter.
Revenue $0.1B (est $0.1B) · EPS $1.06 (est $0.99)
Key quotes
"Based on current production trends and pipeline activity, we remain confident in delivering our full year loan growth guidance in the mid single digits."
"Our net interest margin on a tax equivalent basis remained stable at 4% during the third quarter."
"As I prepare to retire as chief executive officer at the end of this year, I have been reflecting on what we have built together and I could not be prouder of what Citibank and South Plains have become."
Analyst Q&A 3
Margins and new loan rates
Q (Brett Rabatin · StoneX Group): He asked where net interest margin (NIM) is likely to go and whether the bank is letting go of excess cash. He also asked about new loan yields and the pace of expenses and hires after the Bank of Houston deal.
A: Management said they were glad to see margin stability and that recent loan growth helped use excess liquidity. New loan origination is typically in the upper sixes, and internal conversion work is clearing so the pipeline can push more loans. On expenses, they picked up a couple hires, are being thoughtful about hiring, expect a slight fourth-quarter dip, but dollars of noninterest expense may start rising next year even if the percentage does not.
"I just really want to try to keep the NIM in a you know, fairly close range of where we are at." — Steven Crockett (CFO)
Loan pipeline, payoffs and auto portfolio
Q (Joseph Yanchunis · Raymond James): He asked how the loan pipeline has developed and if mid single-digit loan growth can be sustained into 2027. He also asked about expected loan payoffs, the rise in nonperforming loans, and whether they would consider selling the auto loan portfolio.
A: They said the pipeline strengthened in the second half and metro markets now make up nearly half or more of the pipeline, so they feel good about hitting year-end growth projections. Payoffs are expected and they have baked likely fourth-quarter payoffs into plans; the nonperforming loans that rose were acquired, had remediation plans, and the largest of the two has returned to performing. On auto loans, they are not looking to sell; they like the business, say over 99% is super prime/prime, and note the portfolio duration is relatively short.
"I feel very good about hitting our year-end projection for growth for sure." — Brent A. Bates
Bank of Houston savings, balance sheet targets, NIM
Q (Stephen Scouten · Piper Sandler): He asked how much expense savings remain from the Bank of Houston deal and when they expect to take them. He also asked target loan-to-deposit ratio, balance sheet composition, and how NIM and spreads would hold up if rates rise another 25 basis points.
A: They said most of the cost saves were already realized (bulk in Q2, some ran through Q3) and that pretty much everything is in place now. The bank targets about an 85% loan-to-deposit ratio, is buying some securities to offset paydowns but does not want to increase the securities portfolio overall and plans to keep it relatively short. On rate moves, management said a 25 or even 50 basis-point hike would not have a large overall effect; new loan yields in the mid-to-upper sixes vs deposit costs in the mid-fours may be tight short term, but they feel good about the overall position.
"I think we have generally say, you know, loan to deposit ratio up to 85% or so is where we would like for it to be." — Steven Crockett (CFO)