South Plains Financial 第二季淨利潤1900萬美元，每股盈利0.96美元，收購Bank of Houston完成

EX-99.1
2
ef20078138_ex99-1.htm
EXHIBIT 99.1

 
 
 
 

 
 
 Exhibit 99.1

 
 

 

 
 

 South Plains Financial, Inc. Reports Second Quarter 2026 Financial Results

 
 

 LUBBOCK, Texas, July 17, 2026 (GLOBE NEWSWIRE) – South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the “Company”), the parent company of City
 Bank (“City Bank” or the “Bank”), today reported its financial results for the quarter ended June 30, 2026.

 
 

 Second Quarter 2026 Highlights

 
 

 

 
 
 
 ●
 
 Net income for the second quarter of 2026 was $19.0 million, compared to $14.5 million for the first quarter of 2026 and $14.6 million for the second quarter of 2025.

 
 

 
 

 
 
 
 ●
 
 Diluted earnings per share for the second quarter of 2026 was $0.96, compared to $0.85 for the first quarter of 2026 and $0.86 for the second quarter of 2025.

 
 

 
 

 
 
 
 ●
 
 Average cost of deposits for the second quarter of 2026 was 208 basis points, compared to 197 basis points for the first quarter of 2026 and 214 basis points for the
 second quarter of 2025.

 
 

 
 

 
 
 
 ●
 
 Net interest margin, on a tax-equivalent basis, was 4.00% for the second quarter of 2026, compared to 4.04% for the first quarter of 2026 and 4.07% for the second
 quarter of 2025.

 
 

 
 

 
 
 
 ●
 
 Return on average assets for the second quarter of 2026 was 1.44%, compared to 1.31% for the first quarter of 2026 and 1.34% for the second quarter of 2025.

 
 

 
 

 
 
 
 ●
 
 Tangible book value (non-GAAP) per share was $29.57 as of June 30, 2026, compared to $29.65 as of March 31, 2026 and $26.70 as of June 30, 2025.

 
 

 
 

 
 
 
 ●
 
 The consolidated total risk-based capital ratio, common equity tier 1 risk-based capital ratio, and tier 1 leverage ratio at June 30, 2026 were 16.53%, 14.10%, and
 12.20%, respectively.

 
 

 
 

 
 
 
 ●
 
 As previously reported, the Company completed the merger of BOH Holdings, Inc. (“BOH”) with and into South Plains, with South Plains continuing as the surviving
 corporation, and the merger of BOH’s wholly-owned subsidiary, Bank of Houston, with and into City Bank, with City Bank continuing as the surviving bank, all effective on April 1, 2026. As of March 31, 2026, BOH had total assets of $685.0
 million, total loans of $631.9 million, and total deposits of $595.6 million.

 
 

 
 
 

 Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “We delivered a strong second quarter highlighted by solid profitability, stable credit
 quality and the successful integration of Bank of Houston, which has strengthened our position in Houston, one of Texas’ most attractive banking markets. As I prepare to retire as Chief Executive Officer at year-end, I am incredibly proud of what our
 employees have accomplished and the Company we have built together over the past four decades. The Bank is in a position of strength, and our leadership transition reflects years of thoughtful planning designed to ensure continuity for our customers,
 employees and shareholders. I remain highly confident in South Plains’ future and believe Cory is the right leader to guide the organization as we continue to grow earnings, deepen customer relationships and build on the culture that has been central
 to our success. I look forward to continuing to serve as Chairman of South Plains and City Bank as Cory and our talented leadership team build on our momentum and execute the next phase of our growth strategy.”

 
 

 Cory Newsom, South Plains’ President, added, “I am honored by the Board’s confidence and am excited to lead South Plains into its next chapter. Our second quarter
 results demonstrate the strength of our relationship-based banking model, disciplined credit culture and proven growth strategy. Looking ahead, we remain focused on expanding our lending platform in high-growth Texas markets, attracting experienced
 bankers who fit our culture, optimizing the Bank of Houston acquisition and pursuing disciplined growth opportunities that enhance long-term shareholder value. With a strong balance sheet, healthy loan pipeline and exceptional team, we believe South
 Plains is well positioned for continued success.”

 
 

 Results of Operations, Quarter Ended June 30, 2026

 
 

 Net Interest Income

 
 

 Net interest income was $50.3 million for the second quarter of 2026, compared to $42.9 million for the first quarter of 2026 and $42.5 million for the
 second quarter of 2025. Net interest margin, calculated on a tax-equivalent basis, was 4.00% for the second quarter of 2026, compared to 4.04% for the first quarter of 2026 and 4.07% for the second quarter of 2025. The average yield on loans was
 6.81% for the second quarter of 2026, compared to 6.83% for the first quarter of 2026 and 6.99% for the second quarter of 2025. The average cost of deposits was 208 basis points for the second quarter of 2026, which is 11 basis points higher than the
 first quarter of 2026 and 6 basis points lower than the second quarter of 2025. The increase from the first quarter of 2026 was due to the higher cost of deposits on the Bank of Houston acquired deposits.

 
 

 
 
 

 

 Interest income was $75.0 million for the second quarter of 2026, compared to $62.6 million for the first quarter of 2026 and $64.1 million for the
 second quarter of 2025. Interest income in the second quarter of 2026 increased $12.4 million compared to the first quarter of 2026 and increased $10.9 million compared to the second quarter of 2025. These increases were primarily due to the
 acquisition of BOH’s approximately $667 million of interest-earning assets.

 
 

 Interest expense was $24.7 million for the second quarter of 2026, compared to $19.8 million for the first quarter of 2026 and $21.6 million for the
 second quarter of 2025. Interest expense in the second quarter of 2026 increased $4.9 million compared to the first quarter of 2026 and increased $3.1 million compared to the second quarter of 2025. These increases were mainly attributable to the
 acquisition of BOH’s approximately $611 million of interest-bearing liabilities, with the year-over-year comparison being partially offset by interest-bearing deposit growth in the first quarter of 2026.

 
 

 Noninterest Income and Noninterest Expense

 
 

 Noninterest income was $14.1 million for the second quarter of 2026, compared to $11.3 million for the first quarter of 2026 and $12.2 million for the
 second quarter of 2025. The increase from the first quarter of 2026 was primarily due to an increase of $929 thousand in mortgage banking revenues, mainly as a result of improved mortgage originations during the quarter, and an increase of $894
 thousand in bank card services and interchange revenue, mainly as a result of continued growth in customer card usage and incentives received during the period. Additionally, there was an $801 thousand loss in a Small Business Investment Company
 (“SBIC”) investment that lowered other noninterest income in the first quarter of 2026. The increase in noninterest income for the second quarter of 2026 as compared to the second quarter of 2025 was primarily due to an increase of $1.2 million in
 mortgage banking revenues, mainly as a result of the change in the fair value adjustment of the mortgage servicing rights assets – a write-up of $515 thousand in the second quarter of 2026 compared to a write-down of $156 thousand in the second
 quarter of 2025 – based on interest rate changes during the respective quarters.

 
 

 Noninterest expense was $39.9 million for the second quarter of 2026, compared to $35.5 million for the first quarter of 2026 and $33.5 million for the
 second quarter of 2025. The $4.3 million increase from the first quarter of 2026 primarily resulted from an increase of $2.7 million in core operating expenses related to the recent acquisition and higher incentive-based compensation expense. There
 was approximately $1.1 million of acquisition-related expenses in the second quarter of 2026, of which $710 thousand was for personnel expenses, compared to $1.5 million in the first quarter of 2026, of which $1.2 million was for professional
 services. The $6.3 million increase in noninterest expense for the second quarter of 2026 as compared to the second quarter of 2025 was largely the result of the $2.7 million increase in core operating expenses related to the recent acquisition,
 annual salary adjustments and new lenders hired, and $1.1 million in acquisition-related expenses.

 
 

 Loan Portfolio and Composition

 
 

 Loans held for investment were $3.77 billion as of June 30, 2026, compared to $3.10 billion as of March 31, 2026 and $3.10 billion as of June 30, 2025.
 The increase of $667.3 million during the second quarter of 2026 as compared to the first quarter of 2026 occurred as a result of $631.9 million in loans from the recent acquisition and $35.4 million of organic loan growth during the quarter. The
 organic growth was net of two loan payoffs totaling $37.5 million during the quarter. As of June 30, 2026, loans held for investment increased $671.9 million as compared to June 30, 2025, primarily as a result of acquisition growth noted above.

 
 

 Deposits and Borrowings

 
 

 Deposits totaled $4.64 billion as of June 30, 2026, compared to $4.03 billion as of March 31, 2026 and $3.74 billion as of June 30, 2025. Deposits
 increased by $613.0 million in the second quarter of 2026 from March 31, 2026. Deposits increased by $901.7 million at June 30, 2026 as compared to June 30, 2025. Noninterest-bearing deposits were $1.15 billion as of June 30, 2026, compared to $1.03
 billion as of March 31, 2026 and $998.8 million as of June 30, 2025. Noninterest-bearing deposits represented 24.8% of total deposits as of June 30, 2026. The quarterly and year-over-year change in total deposits was primarily due to $595.6 million
 in deposits from the recent acquisition. Additionally, the year-over-year change had $288.6 million in organic growth broadly across the deposit portfolio.

 
 

 Asset Quality

 
 

 The Company recorded a provision for credit losses in the second quarter of 2026 of $350 thousand, compared to $260 thousand in the first quarter of 2026
 and $2.5 million in the second quarter of 2025. The decrease in provision for the year-over-year comparison was largely attributable to activity in the second quarter of 2025 which included an increase in specific reserves, increased loan balances,
 and several credit quality downgrades.

 
 

 The ratio of allowance for credit losses to loans held for investment was 1.41% as of June 30, 2026, compared to 1.44% as of March 31, 2026 and 1.45% as
 of June 30, 2025.

 
 

 
 
 

 

 The ratio of nonperforming assets to total assets was 0.19% as of June 30, 2026, compared to 0.13% as of March 31, 2026 and 0.25% as of June 30, 2025.
 Annualized net charge-offs were 0.06% for the second quarter of 2026, compared to 0.04% for the first quarter of 2026 and 0.06% for the second quarter of 2025.

 
 

 Capital

 
 

 Book value per share increased to $33.43 at June 30, 2026, compared to $30.90 at March 31, 2026. The change was primarily driven by the issuance of 2.8
 million shares for the BOH acquisition at $41.90 per share. The increase was also the result of $15.7 million of net income after dividends paid during the second quarter of 2026. The ratio of tangible common equity to tangible assets (non-GAAP)
 stayed essentially flat at 10.47% at June 30, 2026.

 
 

 Conference Call

 
 

 South Plains will host a conference call to discuss its second quarter 2026 financial results today, July 17, 2026, at 8:30 a.m., Eastern Time. Investors
 and analysts interested in participating in the call are invited to dial 1-877-407-9716 (international callers please dial 1-201-493-6779) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call and
 conference materials will be available on the Company’s website at https://www.spfi.bank/news-events/events.

 
 

 A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed on the investor section of the
 Company’s website as well as by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671). The pin to access the telephone replay is 13759880. The replay will be available until July 31, 2026.

 
 

 About South Plains Financial, Inc.

 
 

 South Plains is the bank holding company for City Bank, a Texas state-chartered bank headquartered in Lubbock, Texas. City Bank is one of the largest
 independent banks in West Texas and has additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. South Plains provides a wide range of commercial
 and consumer financial services to small and medium-sized businesses and individuals in its market areas. Its principal business activities include commercial and retail banking, along with investment, trust and mortgage services. Please visit https://www.spfi.bank for more information.

 
 

 Non-GAAP Financial Measures

 
 

 Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted
 accounting principles in the United States (“GAAP”). These non-GAAP financial measures include Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Pre-Tax, Pre-Provision Income. The Company believes these non-GAAP financial
 measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial
 measures.

 
 

 We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to
 adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the
 United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by
 other companies.

 
 

 A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.

 
 

 Available Information

 
 

 The Company routinely posts important information for investors on its web site (under www.spfi.bank and, more specifically, under the News & Events tab at www.spfi.bank/news-events/press-releases).

 The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the
 “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.

 
 

 The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this
 document.

 
 

 
 
 

 

 Forward Looking Statements

 
 

 This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking
 statements reflect South Plains’ current views with respect to future events and South Plains’ financial performance. Any statements about South Plains’ expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or
 performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,”
 “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. South Plains cautions that the forward-looking statements in this press release are based largely on South Plains’ expectations and are
 subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond South Plains’ control. Factors that could cause such changes include, but are not limited to, the impact
 on us and our customers of a decline in general economic conditions and any regulatory responses thereto; slower economic growth rates or potential recession in the United States and our market areas; uncertainty or perceived instability in the
 banking industry as a whole; increased competition for deposits in our market areas among traditional and nontraditional financial services companies, and related changes in deposit customer behavior; the impact of changes in market interest rates,
 whether due to a continuation of the elevated interest rate environment or future reductions in interest rates and a resulting decline in net interest income; the persistent inflationary pressures in the United States; the uncertain impacts of 
 current and future monetary policies of the Board of Governors of the Federal Reserve System; changes in unemployment rates in the United States and our market areas; adverse changes in customer spending, borrowing and savings habits; elevated asset
 prices; declines in housing and commercial real estate values and prices; a deterioration of the credit rating for U.S. long-term sovereign debt or the impact of uncertain or changing political conditions, including federal government shutdowns and
 uncertainty regarding United States fiscal debt, deficit and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service
 providers, including as a result of cyber-attacks; severe weather, natural disasters, military conflicts (including the conflicts in the Middle East, the possible expansion of such conflicts and potential geopolitical and economic consequences), acts
 of terrorism, geopolitical instability, domestic civil unrest or other external events, including as a result of the impact of the policies of the current U.S. presidential administration or Congress; the impacts of tariffs, sanctions, and other
 trade policies of the United States and its global trading counterparts and the resulting impact on the Company and its customers; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of
 such expenditures; the risks related to the development, implementation, use and management of emerging technologies, including digital assets, artificial intelligence and machine learning; potential costs related to the impacts of climate change;
 current or future litigation, regulatory examinations or other legal and/or regulatory actions; our ability to recognize the expected benefits and synergies of our completed acquisitions; changes in accounting principles and standards, including
 those related to loan loss recognition under the current expected credit loss, or CECL, methodology; and changes in applicable laws, regulations, or policies in the United States. Additional information regarding these risks and uncertainties to
 which South Plains’ business and future financial performance are subject is contained in South Plains’ most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and
 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and other documents South Plains files or furnishes with the SEC from time to time, which are available on the SEC’s website, www.sec.gov.
 Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which South Plains is not currently aware or which it
 does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, the Company can give no assurance that the results contemplated in the forward-looking
 statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Any forward-looking statements presented herein are made only as of the date of this press release,
 and South Plains does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. All
 forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

 
 

 

 
 
 Contact:

 
 
 Mikella Newsom, Chief Risk Officer and Secretary

 
 

 
  
 
 (866) 771-3347

 
 

 
  
 
 [email protected]

 
 

 
 
 

 Source: South Plains Financial, Inc.

 
 

 
 
 

 

 South Plains Financial, Inc.

 Consolidated Financial Highlights - (Unaudited)

 (Dollars in thousands, except share data)

 
 

 

 
  
  
 
 As of and for the quarter ended

 
  
 

 
  
  
 
 June 30,

 2026

 
  
  
 
 March 31,

 2026

 
  
  
 
 December 31,

 2025

 
  
  
 
 September 30,

 2025

 
  
  
 
 June 30,

 2025

 
  
 

 
 
 Selected Income Statement Data:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Interest income

 
  
 
 $

 
 
 75,003

 
  
  
 
 $

 
 
 62,632

 
  
  
 
 $

 
 
 63,421

 
  
  
 
 $

 
 
 64,520

 
  
  
 
 $

 
 
 64,135

 
  
 

 
 
 Interest expense

 
  
  
 
 24,654

 
  
  
  
 
 19,780

 
  
  
  
 
 20,471

 
  
  
  
 
 21,501

 
  
  
  
 
 21,632

 
  
 

 
 
 Net interest income

 
  
  
 
 50,349

 
  
  
  
 
 42,852

 
  
  
  
 
 42,950

 
  
  
  
 
 43,019

 
  
  
  
 
 42,503

 
  
 

 
 
 Provision for credit losses

 
  
  
 
 350

 
  
  
  
 
 260

 
  
  
  
 
 1,775

 
  
  
  
 
 500

 
  
  
  
 
 2,500

 
  
 

 
 
 Noninterest income

 
  
  
 
 14,143

 
  
  
  
 
 11,295

 
  
  
  
 
 10,934

 
  
  
  
 
 11,165

 
  
  
  
 
 12,165

 
  
 

 
 
 Noninterest expense

 
  
  
 
 39,864

 
  
  
  
 
 35,526

 
  
  
  
 
 33,023

 
  
  
  
 
 33,024

 
  
  
  
 
 33,543

 
  
 

 
 
 Income tax expense

 
  
  
 
 5,286

 
  
  
  
 
 3,816

 
  
  
  
 
 3,832

 
  
  
  
 
 4,342

 
  
  
  
 
 4,020

 
  
 

 
 
 Net income

 
  
  
 
 18,992

 
  
  
  
 
 14,545

 
  
  
  
 
 15,254

 
  
  
  
 
 16,318

 
  
  
  
 
 14,605

 
  
 

 
 
 Per Share Data (Common Stock):

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net earnings, basic

 
  
 
 $

 
 
 0.99

 
  
  
 
 $

 
 
 0.89

 
  
  
 
 $

 
 
 0.94

 
  
  
 
 $

 
 
 1.00

 
  
  
 
 $

 
 
 0.90

 
  
 

 
 
 Net earnings, diluted

 
  
  
 
 0.96

 
  
  
  
 
 0.85

 
  
  
  
 
 0.90

 
  
  
  
 
 0.96

 
  
  
  
 
 0.86

 
  
 

 
 
 Cash dividends declared and paid

 
  
  
 
 0.17

 
  
  
  
 
 0.17

 
  
  
  
 
 0.16

 
  
  
  
 
 0.16

 
  
  
  
 
 0.15

 
  
 

 
 
 Book value

 
  
  
 
 33.43

 
  
  
  
 
 30.90

 
  
  
  
 
 30.31

 
  
  
  
 
 29.41

 
  
  
  
 
 27.98

 
  
 

 
 
 Tangible book value (non-GAAP)

 
  
  
 
 29.57

 
  
  
  
 
 29.65

 
  
  
  
 
 29.05

 
  
  
  
 
 28.14

 
  
  
  
 
 26.70

 
  
 

 
 
 Weighted average shares outstanding, basic

 
  
  
 
 19,100,893

 
  
  
  
 
 16,318,570

 
  
  
  
 
 16,248,336

 
  
  
  
 
 16,241,695

 
  
  
  
 
 16,231,627

 
  
 

 
 
 Weighted average shares outstanding, dilutive

 
  
  
 
 19,809,801

 
  
  
  
 
 17,036,334

 
  
  
  
 
 16,996,517

 
  
  
  
 
 16,990,546

 
  
  
  
 
 16,886,993

 
  
 

 
 
 Shares outstanding at end of period

 
  
  
 
 18,839,105

 
  
  
  
 
 16,342,219

 
  
  
  
 
 16,293,577

 
  
  
  
 
 16,247,839

 
  
  
  
 
 16,230,475

 
  
 

 
 
 Selected Period End Balance Sheet Data:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Cash and cash equivalents

 
  
 
 $

 
 
 787,757

 
  
  
 
 $

 
 
 722,000

 
  
  
 
 $

 
 
 552,439

 
  
  
 
 $

 
 
 635,046

 
  
  
 
 $

 
 
 470,496

 
  
 

 
 
 Investment securities

 
  
  
 
 555,427

 
  
  
  
 
 602,852

 
  
  
  
 
 567,540

 
  
  
  
 
 571,138

 
  
  
  
 
 570,000

 
  
 

 
 
 Total loans held for investment

 
  
  
 
 3,770,829

 
  
  
  
 
 3,103,529

 
  
  
  
 
 3,144,502

 
  
  
  
 
 3,053,503

 
  
  
  
 
 3,098,978

 
  
 

 
 
 Allowance for credit losses

 
  
  
 
 53,076

 
  
  
  
 
 44,822

 
  
  
  
 
 45,131

 
  
  
  
 
 44,125

 
  
  
  
 
 45,010

 
  
 

 
 
 Total assets

 
  
  
 
 5,391,206

 
  
  
  
 
 4,646,374

 
  
  
  
 
 4,480,500

 
  
  
  
 
 4,479,437

 
  
  
  
 
 4,363,674

 
  
 

 
 
 Interest-bearing deposits

 
  
  
 
 3,488,985

 
  
  
  
 
 2,993,469

 
  
  
  
 
 2,850,560

 
  
  
  
 
 2,831,642

 
  
  
  
 
 2,740,179

 
  
 

 
 
 Noninterest-bearing deposits

 
  
  
 
 1,151,641

 
  
  
  
 
 1,034,117

 
  
  
  
 
 1,023,517

 
  
  
  
 
 1,049,501

 
  
  
  
 
 998,759

 
  
 

 
 
 Total deposits

 
  
  
 
 4,640,626

 
  
  
  
 
 4,027,586

 
  
  
  
 
 3,874,077

 
  
  
  
 
 3,881,143

 
  
  
  
 
 3,738,938

 
  
 

 
 
 Borrowings

 
  
  
 
 60,493

 
  
  
  
 
 60,493

 
  
  
  
 
 60,493

 
  
  
  
 
 60,493

 
  
  
  
 
 111,799

 
  
 

 
 
 Total stockholders’ equity

 
  
  
 
 629,765

 
  
  
  
 
 504,939

 
  
  
  
 
 493,837

 
  
  
  
 
 477,802

 
  
  
  
 
 454,074

 
  
 

 
 
 Summary Performance Ratios:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Return on average assets (annualized)

 
  
  
 
 1.44

 
 
 %

 
  
  
 
 1.31

 
 
 %

 
  
  
 
 1.36

 
 
 %

 
  
  
 
 1.47

 
 
 %

 
  
  
 
 1.34

 
 
 %

 
 

 
 
 Return on average equity (annualized)

 
  
  
 
 12.17

 
 
 %

 
  
  
 
 11.81

 
 
 %

 
  
  
 
 12.46

 
 
 %

 
  
  
 
 13.89

 
 
 %

 
  
  
 
 13.05

 
 
 %

 
 

 
 
 Net interest margin (1)

 
  
  
 
 4.00

 
 
 %

 
  
  
 
 4.04

 
 
 %

 
  
  
 
 4.00

 
 
 %

 
  
  
 
 4.05

 
 
 %

 
  
  
 
 4.07

 
 
 %

 
 

 
 
 Yield on loans

 
  
  
 
 6.81

 
 
 %

 
  
  
 
 6.83

 
 
 %

 
  
  
 
 6.79

 
 
 %

 
  
  
 
 6.92

 
 
 %

 
  
  
 
 6.99

 
 
 %

 
 

 
 
 Cost of interest-bearing deposits

 
  
  
 
 2.74

 
 
 %

 
  
  
 
 2.64

 
 
 %

 
  
  
 
 2.75

 
 
 %

 
  
  
 
 2.87

 
 
 %

 
  
  
 
 2.91

 
 
 %

 
 

 
 
 Efficiency ratio

 
  
  
 
 61.59

 
 
 %

 
  
  
 
 65.33

 
 
 %

 
  
  
 
 61.02

 
 
 %

 
  
  
 
 60.69

 
 
 %

 
  
  
 
 61.11

 
 
 %

 
 

 
 
 Summary Credit Quality Data:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Nonperforming loans

 
  
 
 $

 
 
 9,506

 
  
  
 
 $

 
 
 5,093

 
  
  
 
 $

 
 
 9,805

 
  
  
 
 $

 
 
 9,709

 
  
  
 
 $

 
 
 10,463

 
  
 

 
 
 Nonperforming loans to total loans held for investment

 
  
  
 
 0.25

 
 
 %

 
  
  
 
 0.16

 
 
 %

 
  
  
 
 0.31

 
 
 %

 
  
  
 
 0.32

 
 
 %

 
  
  
 
 0.34

 
 
 %

 
 

 
 
 Other real estate owned

 
  
 
 $

 
 
 790

 
  
  
 
 $

 
 
 994

 
  
  
 
 $

 
 
 1,749

 
  
  
 
 $

 
 
 1,827

 
  
  
 
 $

 
 
 535

 
  
 

 
 
 Nonperforming assets to total assets

 
  
  
 
 0.19

 
 
 %

 
  
  
 
 0.13

 
 
 %

 
  
  
 
 0.26

 
 
 %

 
  
  
 
 0.26

 
 
 %

 
  
  
 
 0.25

 
 
 %

 
 

 
 
 Allowance for credit losses to total loans held for investment

 
  
  
 
 1.41

 
 
 %

 
  
  
 
 1.44

 
 
 %

 
  
  
 
 1.44

 
 
 %

 
  
  
 
 1.45

 
 
 %

 
  
  
 
 1.45

 
 
 %

 
 

 
 
 Net charge-offs to average loans outstanding (annualized)

 
  
  
 
 0.06

 
 
 %

 
  
  
 
 0.04

 
 
 %

 
  
  
 
 0.10

 
 
 %

 
  
  
 
 0.16

 
 
 %

 
  
  
 
 0.06

 
 
 %

 
 

 
 
 

 
 
 

 

 

 
  
  
 
 As of and for the quarter ended

 
  
 

 
  
  
 
 June 30

 2026

 
  
  
 
 March 31,

 2026

 
  
  
 
 December 31,

 2025

 
  
  
 
 September 30,

 2025

 
  
  
 
 June 30,

 2025

 
  
 

 
 
 Capital Ratios:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Total stockholders’ equity to total assets

 
  
  
 
 11.68

 
 
 %

 
  
  
 
 10.87

 
 
 %

 
  
  
 
 11.02

 
 
 %

 
  
  
 
 10.67

 
 
 %

 
  
  
 
 10.41

 
 
 %

 
 

 
 
 Tangible common equity to tangible assets (non-GAAP)

 
  
  
 
 10.47

 
 
 %

 
  
  
 
 10.48

 
 
 %

 
  
  
 
 10.61

 
 
 %

 
  
  
 
 10.25

 
 
 %

 
  
  
 
 9.98

 
 
 %

 
 

 
 
 Common equity tier 1 to risk-weighted assets

 
  
  
 
 14.10

 
 
 %

 
  
  
 
 14.80

 
 
 %

 
  
  
 
 14.45

 
 
 %

 
  
  
 
 14.41

 
 
 %

 
  
  
 
 13.86

 
 
 %

 
 

 
 
 Tier 1 capital to average assets

 
  
  
 
 12.20

 
 
 %

 
  
  
 
 12.68

 
 
 %

 
  
  
 
 12.53

 
 
 %

 
  
  
 
 12.37

 
 
 %

 
  
  
 
 12.12

 
 
 %

 
 

 
 
 Total capital to risk-weighted assets

 
  
  
 
 16.53

 
 
 %

 
  
  
 
 17.61

 
 
 %

 
  
  
 
 17.26

 
 
 %

 
  
  
 
 17.34

 
 
 %

 
  
  
 
 18.17

 
 
 %

 
 

 
 
 

 

 
 (1)
 
 Net interest margin is calculated as the annual net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.

 
 

 
 
 

 
 
 

 

 South Plains Financial, Inc.

 Average Balances and Yields - (Unaudited)

 (Dollars in thousands)

 
 

 

 
  
  
 
 For the Three Months Ended

 
  
 

 
  
  
 
 June 30, 2026

 
  
  
 
 June 30, 2025

 
  
 

 
  
  
  
  
  
  
  
 

 
  
  
 
 Average

 Balance

 
  
  
 
 Interest

 
  
  
 
 Yield/Rate

 
  
  
 
 Average

 Balance

 
  
  
 
 Interest

 
  
  
 
 Yield/Rate

 
  
 

 
 
 Assets

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Loans (1)

 
  
 
 $

 
 
 3,777,590

 
  
  
 
 $

 
 
 64,113

 
  
  
  
 
 6.81

 
 
 %

 
  
 
 $

 
 
 3,094,558

 
  
  
 
 $

 
 
 53,894

 
  
  
  
 
 6.99

 
 
 %

 
 

 
 
 Debt securities - taxable

 
  
  
 
 482,264

 
  
  
  
 
 4,238

 
  
  
  
 
 3.52

 
 
 %

 
  
  
 
 508,508

 
  
  
  
 
 4,700

 
  
  
  
 
 3.71

 
 
 %

 
 

 
 
 Debt securities - nontaxable

 
  
  
 
 152,399

 
  
  
  
 
 1,077

 
  
  
  
 
 2.83

 
 
 %

 
  
  
 
 152,202

 
  
  
  
 
 1,015

 
  
  
  
 
 2.67

 
 
 %

 
 

 
 
 Other interest-bearing assets

 
  
  
 
 660,395

 
  
  
  
 
 5,808

 
  
  
  
 
 3.53

 
 
 %

 
  
  
 
 456,818

 
  
  
  
 
 4,747

 
  
  
  
 
 4.17

 
 
 %

 
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Total interest-earning assets

 
  
  
 
 5,072,648

 
  
  
  
 
 75,236

 
  
  
  
 
 5.95

 
 
 %

 
  
  
 
 4,212,086

 
  
  
  
 
 64,356

 
  
  
  
 
 6.13

 
 
 %

 
 

 
 
 Noninterest-earning assets

 
  
  
 
 231,192

 
  
  
  
  
  
  
  
  
  
  
  
 
 166,763

 
  
  
  
  
  
  
  
  
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Total assets

 
  
 
 $

 
 
 5,303,840

 
  
  
  
  
  
  
  
  
  
  
 
 $

 
 
 4,378,849

 
  
  
  
  
  
  
  
  
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Liabilities & stockholders’ equity

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 NOW, Savings, MMDA’s

 
  
 
 $

 
 
 2,871,819

 
  
  
  
 
 18,353

 
  
  
  
 
 2.56

 
 
 %

 
  
 
 $

 
 
 2,326,779

 
  
  
  
 
 15,890

 
  
  
  
 
 2.74

 
 
 %

 
 

 
 
 Time deposits

 
  
  
 
 602,818

 
  
  
  
 
 5,363

 
  
  
  
 
 3.57

 
 
 %

 
  
  
 
 438,697

 
  
  
  
 
 4,172

 
  
  
  
 
 3.81

 
 
 %

 
 

 
 
 Short-term borrowings

 
  
  
 
 3,739

 
  
  
  
 
 38

 
  
  
  
 
 4.08

 
 
 %

 
  
  
 
 18

 
  
  
  
 
 —

 
  
  
  
 
 0.00

 
 
 %

 
 

 
 
 Notes payable & other long-term borrowings

 
  
  
 
 —

 
  
  
  
 
 —

 
  
  
  
 
 0.00

 
 
 %

 
  
  
 
 —

 
  
  
  
 
 —

 
  
  
  
 
 0.00

 
 
 %

 
 

 
 
 Subordinated debt

 
  
  
 
 14,100

 
  
  
  
 
 238

 
  
  
  
 
 6.77

 
 
 %

 
  
  
 
 64,031

 
  
  
  
 
 835

 
  
  
  
 
 5.23

 
 
 %

 
 

 
 
 Junior subordinated deferrable interest debentures

 
  
  
 
 46,393

 
  
  
  
 
 662

 
  
  
  
 
 5.72

 
 
 %

 
  
  
 
 46,393

 
  
  
  
 
 735

 
  
  
  
 
 6.35

 
 
 %

 
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Total interest-bearing liabilities

 
  
  
 
 3,538,869

 
  
  
  
 
 24,654

 
  
  
  
 
 2.79

 
 
 %

 
  
  
 
 2,875,918

 
  
  
  
 
 21,632

 
  
  
  
 
 3.02

 
 
 %

 
 

 
 
 Demand deposits

 
  
  
 
 1,102,345

 
  
  
  
  
  
  
  
  
  
  
  
 
 990,343

 
  
  
  
  
  
  
  
  
  
 

 
 
 Other liabilities

 
  
  
 
 36,540

 
  
  
  
  
  
  
  
  
  
  
  
 
 63,679

 
  
  
  
  
  
  
  
  
  
 

 
 
 Stockholders’ equity

 
  
  
 
 626,086

 
  
  
  
  
  
  
  
  
  
  
  
 
 448,909

 
  
  
  
  
  
  
  
  
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Total liabilities & stockholders’ equity

 
  
 
 $

 
 
 5,303,840

 
  
  
  
  
  
  
  
  
  
  
 
 $

 
 
 4,378,849

 
  
  
  
  
  
  
  
  
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net interest income

 
  
  
  
  
  
 
 $

 
 
 50,582

 
  
  
  
  
  
  
  
  
  
  
 
 $

 
 
 42,724

 
  
  
  
  
  
 

 
 
 Net interest margin (2)

 
  
  
  
  
  
  
  
  
  
  
 
 4.00

 
 
 %

 
  
  
  
  
  
  
  
  
  
  
 
 4.07

 
 
 %

 
 

 
 
 

 

 
 (1)
 
 Average loan balances include nonaccrual loans and loans held for sale.

 
 

 
 

 
 (2)
 
 Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.

 
 

 
 
 

 
 
 

 

 South Plains Financial, Inc.

 Average Balances and Yields - (Unaudited)

 (Dollars in thousands)

 
 

 

 
  
  
 
 For the Six Months Ended

 
  
 

 
  
  
 
 June 30, 2026

 
  
  
 
 June 30, 2025

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
  
  
 
 Average

 Balance

 
  
  
 
 Interest

 
  
  
 
 Yield/Rate

 
  
  
 
 Average

 Balance

 
  
  
 
 Interest

 
  
  
 
 Yield/Rate

 
  
 

 
 
 Assets

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Loans (1)

 
  
 
 $

 
 
 3,453,878

 
  
  
 
 $

 
 
 116,797

 
  
  
  
 
 6.82

 
 
 %

 
  
 
 $

 
 
 3,084,563

 
  
  
 
 $

 
 
 104,471

 
  
  
  
 
 6.83

 
 
 %

 
 

 
 
 Debt securities - taxable

 
  
  
 
 486,188

 
  
  
  
 
 8,523

 
  
  
  
 
 3.54

 
 
 %

 
  
  
 
 509,431

 
  
  
  
 
 9,392

 
  
  
  
 
 3.72

 
 
 %

 
 

 
 
 Debt securities - nontaxable

 
  
  
 
 152,832

 
  
  
  
 
 2,157

 
  
  
  
 
 2.85

 
 
 %

 
  
  
 
 152,716

 
  
  
  
 
 2,029

 
  
  
  
 
 2.68

 
 
 %

 
 

 
 
 Other interest-bearing assets

 
  
  
 
 608,467

 
  
  
  
 
 10,625

 
  
  
  
 
 3.52

 
 
 %

 
  
  
 
 421,899

 
  
  
  
 
 8,606

 
  
  
  
 
 4.11

 
 
 %

 
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Total interest-earning assets

 
  
  
 
 4,701,365

 
  
  
  
 
 138,102

 
  
  
  
 
 5.92

 
 
 %

 
  
  
 
 4,168,609

 
  
  
  
 
 124,498

 
  
  
  
 
 6.02

 
 
 %

 
 

 
 
 Noninterest-earning assets

 
  
  
 
 206,067

 
  
  
  
  
  
  
  
  
  
  
  
 
 169,222

 
  
  
  
  
  
  
  
  
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Total assets

 
  
 
 $

 
 
 4,907,432

 
  
  
  
  
  
  
  
  
  
  
 
 $

 
 
 4,337,831

 
  
  
  
  
  
  
  
  
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Liabilities & stockholders’ equity

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 NOW, Savings, MMDA’s

 
  
 
 $

 
 
 2,669,649

 
  
  
  
 
 33,407

 
  
  
  
 
 2.52

 
 
 %

 
  
 
 $

 
 
 2,314,562

 
  
  
  
 
 31,401

 
  
  
  
 
 2.74

 
 
 %

 
 

 
 
 Time deposits

 
  
  
 
 519,734

 
  
  
  
 
 9,187

 
  
  
  
 
 3.56

 
 
 %

 
  
  
 
 440,297

 
  
  
  
 
 8,488

 
  
  
  
 
 3.89

 
 
 %

 
 

 
 
 Short-term borrowings

 
  
  
 
 1,871

 
  
  
  
 
 38

 
  
  
  
 
 4.10

 
 
 %

 
  
  
 
 11

 
  
  
  
 
 —

 
  
  
  
 
 0.00

 
 
 %

 
 

 
 
 Notes payable & other long-term borrowings

 
  
  
 
 —

 
  
  
  
 
 —

 
  
  
  
 
 0.00

 
 
 %

 
  
  
 
 —

 
  
  
  
 
 —

 
  
  
  
 
 0.00

 
 
 %

 
 

 
 
 Subordinated debt

 
  
  
 
 14,100

 
  
  
  
 
 481

 
  
  
  
 
 6.88

 
 
 %

 
  
  
 
 64,008

 
  
  
  
 
 1,670

 
  
  
  
 
 5.26

 
 
 %

 
 

 
 
 Junior subordinated deferrable interest debentures

 
  
  
 
 46,393

 
  
  
  
 
 1,321

 
  
  
  
 
 5.74

 
 
 %

 
  
  
 
 46,393

 
  
  
  
 
 1,468

 
  
  
  
 
 6.38

 
 
 %

 
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Total interest-bearing liabilities

 
  
  
 
 3,251,747

 
  
  
  
 
 44,434

 
  
  
  
 
 2.76

 
 
 %

 
  
  
 
 2,865,271

 
  
  
  
 
 43,027

 
  
  
  
 
 3.03

 
 
 %

 
 

 
 
 Demand deposits

 
  
  
 
 1,045,930

 
  
  
  
  
  
  
  
  
  
  
  
 
 962,557

 
  
  
  
  
  
  
  
  
  
 

 
 
 Other liabilities

 
  
  
 
 46,948

 
  
  
  
  
  
  
  
  
  
  
  
 
 64,875

 
  
  
  
  
  
  
  
  
  
 

 
 
 Stockholders’ equity

 
  
  
 
 562,807

 
  
  
  
  
  
  
  
  
  
  
  
 
 445,128

 
  
  
  
  
  
  
  
  
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Total liabilities & stockholders’ equity

 
  
 
 $

 
 
 4,907,432

 
  
  
  
  
  
  
  
  
  
  
 
 $

 
 
 4,337,831

 
  
  
  
  
  
  
  
  
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net interest income

 
  
  
  
  
  
 
 $

 
 
 93,668

 
  
  
  
  
  
  
  
  
  
  
 
 $

 
 
 81,471

 
  
  
  
  
  
 

 
 
 Net interest margin (2)

 
  
  
  
  
  
  
  
  
  
  
 
 4.02

 
 
 %

 
  
  
  
  
  
  
  
  
  
  
 
 3.94

 
 
 %

 
 

 
 
 

 

 
 (1)
 
 Average loan balances include nonaccrual loans and loans held for sale.

 
 

 
 

 
 (2)
 
 Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.

 
 

 
 
 

 
 
 

 

 South Plains Financial, Inc.

 Consolidated Balance Sheets

 (Unaudited)

 (Dollars in thousands)

 
 

 

 
  
  
 
 As of

 
  
 

 
  
  
 
 June 30,

 2026

 
  
  
 
 December 31,

 2025

 
  
 

 
  
  
  
  
  
  
  
 

 
 
 Assets

 
  
  
  
  
  
  
 

 
 
 Cash and due from banks

 
  
 
 $

 
 
 61,177

 
  
  
 
 $

 
 
 58,318

 
  
 

 
 
 Interest-bearing deposits in banks

 
  
  
 
 726,580

 
  
  
  
 
 494,121

 
  
 

 
 
 Securities available for sale

 
  
  
 
 555,427

 
  
  
  
 
 567,540

 
  
 

 
 
 Loans held for sale

 
  
  
 
 11,622

 
  
  
  
 
 9,993

 
  
 

 
 
 Loans held for investment

 
  
  
 
 3,770,829

 
  
  
  
 
 3,144,502

 
  
 

 
 
 Less:  Allowance for credit losses

 
  
  
 
 (53,076

 
 
 )

 
  
  
 
 (45,131

 
 
 )

 
 

 
 
 Net loans held for investment

 
  
  
 
 3,717,753

 
  
  
  
 
 3,099,371

 
  
 

 
 
 Premises and equipment, net

 
  
  
 
 52,132

 
  
  
  
 
 51,563

 
  
 

 
 
 Goodwill

 
  
  
 
 67,089

 
  
  
  
 
 19,315

 
  
 

 
 
 Intangible assets

 
  
  
 
 5,626

 
  
  
  
 
 1,133

 
  
 

 
 
 Mortgage servicing rights

 
  
  
 
 25,749

 
  
  
  
 
 24,041

 
  
 

 
 
 Other assets

 
  
  
 
 168,051

 
  
  
  
 
 155,105

 
  
 

 
 
 Total assets

 
  
 
 $

 
 
 5,391,206

 
  
  
 
 $

 
 
 4,480,500

 
  
 

 
  
  
  
  
  
  
  
  
  
 

 
 
 Liabilities and Stockholders’ Equity

 
  
  
  
  
  
  
  
  
 

 
 
 Noninterest-bearing deposits

 
  
 
 $

 
 
 1,151,641

 
  
  
 
 $

 
 
 1,023,517

 
  
 

 
 
 Interest-bearing deposits

 
  
  
 
 3,488,985

 
  
  
  
 
 2,850,560

 
  
 

 
 
 Total deposits

 
  
  
 
 4,640,626

 
  
  
  
 
 3,874,077

 
  
 

 
 
 Short-term borrowings

 
  
  
 
 —

 
  
  
  
 
 —

 
  
 

 
 
 Subordinated debt

 
  
  
 
 14,100

 
  
  
  
 
 14,100

 
  
 

 
 
 Junior subordinated deferrable interest debentures

 
  
  
 
 46,393

 
  
  
  
 
 46,393

 
  
 

 
 
 Other liabilities

 
  
  
 
 60,322

 
  
  
  
 
 52,093

 
  
 

 
 
 Total liabilities

 
  
  
 
 4,761,441

 
  
  
  
 
 3,986,663

 
  
 

 
 
 Stockholders’ Equity

 
  
  
  
  
  
  
  
  
 

 
 
 Common stock

 
  
  
 
 18,839

 
  
  
  
 
 16,294

 
  
 

 
 
 Additional paid-in capital

 
  
  
 
 194,245

 
  
  
  
 
 91,065

 
  
 

 
 
 Retained earnings

 
  
  
 
 461,708

 
  
  
  
 
 434,197

 
  
 

 
 
 Accumulated other comprehensive income (loss)

 
  
  
 
 (45,027

 
 
 )

 
  
  
 
 (47,719

 
 
 )

 
 

 
 
 Total stockholders’ equity

 
  
  
 
 629,765

 
  
  
  
 
 493,837

 
  
 

 
 
 Total liabilities and stockholders’ equity

 
  
 
 $

 
 
 5,391,206

 
  
  
 
 $

 
 
 4,480,500

 
  
 

 
 
 

 
 
 

 

 South Plains Financial, Inc.

 Consolidated Statements of Income

 (Unaudited)

 (Dollars in thousands)

 
 

 

 
  
  
 
 Three Months Ended

 
  
  
 
 Six Months Ended

 
  
 

 
  
  
 
 June 30,

 2026

 
  
  
 
 June 30,

 2025

 
  
  
 
 June 30,

 2026

 
  
  
 
 June 30,

 2025

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Interest income:

 
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Loans, including fees

 
  
 
 $

 
 
 64,106

 
  
  
 
 $

 
 
 53,886

 
  
  
 
 $

 
 
 116,783

 
  
  
 
 $

 
 
 104,456

 
  
 

 
 
 Other

 
  
  
 
 10,897

 
  
  
  
 
 10,249

 
  
  
  
 
 20,852

 
  
  
  
 
 19,601

 
  
 

 
 
 Total interest income

 
  
  
 
 75,003

 
  
  
  
 
 64,135

 
  
  
  
 
 137,635

 
  
  
  
 
 124,057

 
  
 

 
 
 Interest expense:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Deposits

 
  
  
 
 23,716

 
  
  
  
 
 20,062

 
  
  
  
 
 42,594

 
  
  
  
 
 39,889

 
  
 

 
 
 Subordinated debt

 
  
  
 
 238

 
  
  
  
 
 835

 
  
  
  
 
 481

 
  
  
  
 
 1,670

 
  
 

 
 
 Junior subordinated deferrable interest debentures

 
  
  
 
 662

 
  
  
  
 
 735

 
  
  
  
 
 1,321

 
  
  
  
 
 1,468

 
  
 

 
 
 Other

 
  
  
 
 38

 
  
  
  
 
 —

 
  
  
  
 
 38

 
  
  
  
 
 —

 
  
 

 
 
 Total interest expense

 
  
  
 
 24,654

 
  
  
  
 
 21,632

 
  
  
  
 
 44,434

 
  
  
  
 
 43,027

 
  
 

 
 
 Net interest income

 
  
  
 
 50,349

 
  
  
  
 
 42,503

 
  
  
  
 
 93,201

 
  
  
  
 
 81,030

 
  
 

 
 
 Provision for credit losses

 
  
  
 
 350

 
  
  
  
 
 2,500

 
  
  
  
 
 610

 
  
  
  
 
 2,920

 
  
 

 
 
 Net interest income after provision for credit losses

 
  
  
 
 49,999

 
  
  
  
 
 40,003

 
  
  
  
 
 92,591

 
  
  
  
 
 78,110

 
  
 

 
 
 Noninterest income:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Service charges on deposits

 
  
  
 
 2,366

 
  
  
  
 
 2,098

 
  
  
  
 
 4,621

 
  
  
  
 
 4,239

 
  
 

 
 
 Mortgage banking activities

 
  
  
 
 4,847

 
  
  
  
 
 3,606

 
  
  
  
 
 8,765

 
  
  
  
 
 5,719

 
  
 

 
 
 Bank card services and interchange fees

 
  
  
 
 4,110

 
  
  
  
 
 3,771

 
  
  
  
 
 7,326

 
  
  
  
 
 7,150

 
  
 

 
 
 Other

 
  
  
 
 2,820

 
  
  
  
 
 2,690

 
  
  
  
 
 4,726

 
  
  
  
 
 5,682

 
  
 

 
 
 Total noninterest income

 
  
  
 
 14,143

 
  
  
  
 
 12,165

 
  
  
  
 
 25,438

 
  
  
  
 
 22,790

 
  
 

 
 
 Noninterest expense:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Salaries and employee benefits

 
  
  
 
 23,517

 
  
  
  
 
 19,708

 
  
  
  
 
 43,671

 
  
  
  
 
 39,149

 
  
 

 
 
 Net occupancy expense

 
  
  
 
 4,551

 
  
  
  
 
 3,972

 
  
  
  
 
 8,504

 
  
  
  
 
 7,999

 
  
 

 
 
 Professional services

 
  
  
 
 1,850

 
  
  
  
 
 1,874

 
  
  
  
 
 4,805

 
  
  
  
 
 3,604

 
  
 

 
 
 Marketing and development

 
  
  
 
 1,032

 
  
  
  
 
 919

 
  
  
  
 
 2,033

 
  
  
  
 
 1,824

 
  
 

 
 
 Other

 
  
  
 
 8,914

 
  
  
  
 
 7,070

 
  
  
  
 
 16,377

 
  
  
  
 
 13,997

 
  
 

 
 
 Total noninterest expense

 
  
  
 
 39,864

 
  
  
  
 
 33,543

 
  
  
  
 
 75,390

 
  
  
  
 
 66,573

 
  
 

 
 
 Income before income taxes

 
  
  
 
 24,278

 
  
  
  
 
 18,625

 
  
  
  
 
 42,639

 
  
  
  
 
 34,327

 
  
 

 
 
 Income tax expense

 
  
  
 
 5,286

 
  
  
  
 
 4,020

 
  
  
  
 
 9,102

 
  
  
  
 
 7,428

 
  
 

 
 
 Net income

 
  
 
 $

 
 
 18,992

 
  
  
 
 $

 
 
 14,605

 
  
  
 
 $

 
 
 33,537

 
  
  
 
 $

 
 
 26,899

 
  
 

 
 
 

 
 
 

 

 South Plains Financial, Inc.

 Loan Composition

 (Unaudited)

 (Dollars in thousands)

 
 

 

 
  
  
 
 As of

 
  
 

 
  
  
 
 June 30,

 2026

 
  
  
 
 December 31,

 2025

 
  
 

 
  
  
  
  
  
  
  
 

 
 
 Loans:

 
  
  
  
  
  
  
 

 
 
 Commercial Real Estate

 
  
 
 $

 
 
 1,331,915

 
  
  
 
 $

 
 
 1,064,625

 
  
 

 
 
 Commercial - Specialized

 
  
  
 
 429,380

 
  
  
  
 
 409,351

 
  
 

 
 
 Commercial - General

 
  
  
 
 827,452

 
  
  
  
 
 659,323

 
  
 

 
 
 Consumer:

 
  
  
  
  
  
  
  
  
 

 
 
 1-4 Family Residential

 
  
  
 
 714,014

 
  
  
  
 
 589,851

 
  
 

 
 
 Auto Loans

 
  
  
 
 263,810

 
  
  
  
 
 259,157

 
  
 

 
 
 Other Consumer

 
  
  
 
 61,060

 
  
  
  
 
 62,092

 
  
 

 
 
 Construction

 
  
  
 
 143,198

 
  
  
  
 
 100,103

 
  
 

 
 
 Total loans held for investment

 
  
 
 $

 
 
 3,770,829

 
  
  
 
 $

 
 
 3,144,502

 
  
 

 
 
 

 South Plains Financial, Inc.

 Deposit Composition

 (Unaudited)

 (Dollars in thousands)

 
 

 

 
  
  
 
 As of

 
  
 

 
  
  
 
 June 30,

 2026

 
  
  
 
 December 31,

 2025

 
  
 

 
  
  
  
  
  
  
  
 

 
 
 Deposits:

 
  
  
  
  
  
  
 

 
 
 Noninterest-bearing deposits

 
  
 
 $

 
 
 1,151,641

 
  
  
 
 $

 
 
 1,023,517

 
  
 

 
 
 NOW & other transaction accounts

 
  
  
 
 1,554,184

 
  
  
  
 
 1,307,596

 
  
 

 
 
 MMDA & other savings

 
  
  
 
 1,330,583

 
  
  
  
 
 1,111,529

 
  
 

 
 
 Time deposits

 
  
  
 
 604,218

 
  
  
  
 
 431,435

 
  
 

 
 
 Total deposits

 
  
 
 $

 
 
 4,640,626

 
  
  
 
 $

 
 
 3,874,077

 
  
 

 
 
 

 
 
 

 

 South Plains Financial, Inc.

 Reconciliation of Non-GAAP Financial Measures (Unaudited)

 (Dollars in thousands)

 
 

 

 
  
  
 
 For the quarter ended

 
  
 

 
  
  
 
 June 30,

 2026

 
  
  
 
 March 31,

 2026

 
  
  
 
 December 31,

 2025

 
  
  
 
 September 30,

 2025

 
  
  
 
 June 30,

 2025

 
  
 

 
 
 Pre-tax, pre-provision income

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net income

 
  
 
 $

 
 
 18,992

 
  
  
 
 $

 
 
 14,545

 
  
  
 
 $

 
 
 15,254

 
  
  
 
 $

 
 
 16,318

 
  
  
 
 $

 
 
 14,605

 
  
 

 
 
 Income tax expense

 
  
  
 
 5,286

 
  
  
  
 
 3,816

 
  
  
  
 
 3,832

 
  
  
  
 
 4,342

 
  
  
  
 
 4,020

 
  
 

 
 
 Provision for credit losses

 
  
  
 
 350

 
  
  
  
 
 260

 
  
  
  
 
 1,775

 
  
  
  
 
 500

 
  
  
  
 
 2,500

 
  
 

 
 
 Pre-tax, pre-provision income

 
  
 
 $

 
 
 24,628

 
  
  
 
 $

 
 
 18,621

 
  
  
 
 $

 
 
 20,861

 
  
  
 
 $

 
 
 21,160

 
  
  
 
 $

 
 
 21,125

 
  
 

 
 
 

 

 
  
  
 
 As of

 
  
 

 
  
  
 
 June 30,

 2026

 
  
  
 
 March 31,

 2026

 
  
  
 
 December 31,

 2025

 
  
  
 
 September 30,

 2025

 
  
  
 
 June 30,

 2025

 
  
 

 
 
 Tangible common equity

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Total common stockholders’ equity

 
  
 
 $

 
 
 629,765

 
  
  
 
 $

 
 
 504,939

 
  
  
 
 $

 
 
 $ 493,837

 
  
  
 
 $

 
 
 $ 477,802

 
  
  
 
 $

 
 
 $ 454,074

 
  
 

 
 
 Less:  goodwill and other intangibles

 
  
  
 
 (72,715

 
 
 )

 
  
  
 
 (20,327

 
 
 )

 
  
  
 
 (20,448

 
 
 )

 
  
  
 
 (20,580

 
 
 )

 
  
  
 
 (20,732

 
 
 )

 
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Tangible common equity

 
  
 
 $

 
 
 557,050

 
  
  
 
 $

 
 
 484,612

 
  
  
 
 $

 
 
 $ 473,389

 
  
  
 
 $

 
 
 $ 457,222

 
  
  
 
 $

 
 
 $ 433,342

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Tangible assets

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Total assets

 
  
 
 $

 
 
 5,391,206

 
  
  
 
 $

 
 
 4,646,374

 
  
  
 
 $

 
 
 $ 4,480,500

 
  
  
 
 $

 
 
 $ 4,479,437

 
  
  
 
 $

 
 
 $ 4,363,674

 
  
 

 
 
 Less:  goodwill and other intangibles

 
  
  
 
 (72,715

 
 
 )

 
  
  
 
 (20,327

 
 
 )

 
  
  
 
 (20,448

 
 
 )

 
  
  
 
 (20,580

 
 
 )

 
  
  
 
 (20,732

 
 
 )

 
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Tangible assets

 
  
 
 $

 
 
 5,318,491

 
  
  
 
 $

 
 
 4,626,047

 
  
  
 
 $

 
 
 $ 4,460,052

 
  
  
 
 $

 
 
 $ 4,458,857

 
  
  
 
 $

 
 
 $ 4,342,942

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Shares outstanding

 
  
  
 
 18,839,105

 
  
  
  
 
 16,342,219

 
  
  
  
 
 16,293,577

 
  
  
  
 
 16,247,839

 
  
  
  
 
 16,230,475

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Total stockholders’ equity to total assets