South Plains Financial : First Quarter 2026 Earnings Presentation v.8

Published: 2026-04-28 17:14:31 ET SPFI

Published on 04/28/2026 at 05:14 pm EDT

South Plains Financial

First Quarter 2026 Earnings Presentation

April 28, 2026

Curtis C. Griffith Chairman & Chief Executive Officer

Elected to the board of directors of First State Bank of Morton, Texas, in 1972 and employed by it in 1979

Elected Chairman of the First State Bank of Morton board in 1984

Chairman of the Board of City Bank and the Company since 1993

Cory T. Newsom

President

Entire banking career with the Company focused on lending and operations

Appointed President and Chief Executive Officer of the Bank in 2008

Joined the Board in 2008

Steven B. Crockett Chief Financial Officer & Treasurer

Appointed Chief Financial Officer in 2015

Previously Controller of City Bank and the Company for 14 and 5 years respectively

Began career in public accounting in 1994 by serving for seven years with a local firm in Lubbock, Texas

First Quarter 2026

Net Income

$14.5 M

EPS - Diluted

$0.85

Net Interest Margin (1)

("NIM") 4.04%

Total Deposits

$4.03 B

Loans Held for Investment

("HFI") $3.10 B

Average Yield on Loans 6.83%

Return on Average Assets ("ROAA") 1.31%

Efficiency Ratio

65.33%

Net income for 1Q'26 was $14.5 million, compared to $15.3 million for 4Q'25

Diluted earnings per share for 1Q'26 was $0.85, compared to $0.90 for 4Q'25

Net interest margin was 4.04% for 1Q'26, compared to 4.00% for 4Q'25

Loans HFI were $3.10 billion as of March 31, 2026, compared to $3.14 billion as of December 31, 2025

Deposits totaled $4.03 billion as of March 31, 2026, compared to $3.87 billion as of December 31, 2025

Nonperforming assets to total assets improved to 0.13% as of March 31, 2026, compared to 0.26% as of December 31, 2025

Tangible book value (non-GAAP) per share(2) was $29.65 as of March 31, 2026, compared to $29.05 as of December 31, 2025

Completed the merger of BOH Holdings, Inc. ("BOH") with and into South Plains and the merger of BOH's wholly-owned subsidiary, Bank of Houston, with and into City Bank, all effective on April 1, 2026

Net interest margin is calculated on a tax-equivalent basis

Tangible book value per share is a non-GAAP measure. See appendix for the reconciliation of non-GAAP measures to GAAP

Source: Company documents

Total Loans HFI

$ in Millions

6.99%

$3,076 $3,099 $3,054

6.67%

6.92%

$3,145

6.79%

$3,104

1Q'26 Highlights

6.83%

Loans HFI decreased by $41.0 million, or 1.3%, from 4Q'25, primarily due to the expected early payoff of a $29.7 million multifamily loan and seasonal net paydowns in agricultural loans of

$24.4 million, partially offset by organic growth

The average yield on loans was 6.83% for 1Q'26, compared to 6.79% for 4Q'25. There was problem loan interest and fee recoveries as noted:

1Q'26 - $545 thousand; positively impacted the loan yield by 7 bps

3Q'25 - $640 thousand; positively impacted the loan yield by 8 bps

2Q'25 - $1.7 million; positively impacted the loan yield by 23 bps

1Q25 2Q25 3Q25 4Q25 1Q26

Total Loans HFI Yield

Source: Company documents

Dallas / Ft.

Worth

Largest MSA in Texas and fourth largest in the nation

Steadily expanding population that accounts for over 26% of the state's population

Created the third most new jobs of any metro area in the U.S. in 2024

Generated more than $790 billion in GDP in 2024 accounting for ~30% of Texas' total GDP

The Permian Basin is the largest oil producing region in the U.S., spanning West Texas and southeastern New Mexico

Permian Basin

Current oil production of ~6.6 million barrels per day, representing ~48% of total U.S. production

Top operators in the region include ExxonMobil, Chevron, Occidental Petroleum, ConocoPhillips and EOG Resources

Houston

Second largest MSA in Texas and fifth largest in the nation

The 6th largest metro economy in the U.S.

Would rank as the 21st largest economy in the world with GDP of more than $750 billion in 2024

Called the "Energy Capital of the World," the area also boasts the world's largest medical center and busiest port in the U.S. in 2025

11th largest Texas city with a population exceeding 360,000 people

Lubbock

Major industries in agribusiness, education & research, and healthcare & life sciences, among others

More than 53,000 college students enrolled with ~14,000 graduates annually

A large share graduate with degrees in healthcare, engineering, agriculture and business providing a strong labor pool

DFW and Houston data from the BEA, BLS and US Census Bureau Permian Basin Data from the U.S. EIA

Lubbock data from US Census Bureau, Dallas Fed, and St. Louis Fed 6

Total Metropolitan Market(1) Loans

$ in Millions

1Q'26 Highlights

$1,040 $1,014 $1,014 $1,028

$1,005

5.00

Loans HFI in our major metropolitan markets(1) declined $23 million in 1Q'26 as compared to 4Q'25 largely due to the expected early payoff of a $29.7 million multifamily loan

Our major metropolitan market loan portfolio represents 32.4% of the Bank's total loans HFI on March 31, 2026

Bank of Houston had approximately $627 million in loans at March 31, 2026, providing important scale in Houston, Texas - one of the fastest growing MSAs in the country

1Q25 2Q25 3Q25 4Q25 1Q26

Source: Company documents 7

(1) The Bank defines its "major metropolitan markets" to include Dallas, Houston and El Paso, Texas

Loan Mix

Fixed vs. Variable Rate

Other Consumer, 2%

Auto, 8%

1-4 Family,

19%

Commercial C&D, 5%

Residential C&D, 7%

CRE

20%

22%

42%

Loan Portfolio ($ in millions)

Commercial C&D $ 161.0

Residential C&D 227.5

CRE Owner/Occ. 416.7

Other CRE Non Owner/Occ. 569.2

Multi-Family 198.6

C&I 483.2

Agriculture 139.6

1-4 Family 589.0

Auto 256.1

Other Consumer 62.6

Owner/Occ., 14%

Agriculture, 5%

Source: Company documents Data as of March 31, 2026

C&I, 16%

Other CRE Non Owner/Occ., 18%

Multi-Family, 6%

Total $ 3,103.5

NOO CRE(1) Sector Breakdown

Other C&D, 25%

Residential Construction, 9%

Details

NOO CRE was 37.3% of total loans HFI, consistent with 37.0% at December 31, 2025

NOO CRE portfolio is made up of $769.2 million

Hospitality & Other, 8%

Industrial, 13%

Multi-family, 17%

Retail, 16%

Office, 12%

of income producing loans and $387.2 million of construction, acquisition, and development loans

Estimated weighted average LTV of income-producing NOO CRE was 58%

Property Type ($ in millions)

Income-producing:

Multi-family $ 198.6

Retail 181.8

Office 140.9

Industrial 149.7

Hospitality 41.8

Other 56.4

Construction, acquisition, and development:

Residential construction 103.4

Other 283.8

Office NOO CRE loans were 4.5% of total LHI and had a weighted average LTV of 57%

NOO CRE loans past due 90+ days or nonaccrual: 15 basis points of portfolio

Total $ 1,156.4

Source: Company documents

Data as of March 31, 2026 9

(1) Non-owner occupied commercial real estate ("NOO CRE")

Indirect Auto Credit Breakdown

Indirect Auto Highlights

2.6%

5.3%

19.2%

3.4%

69.5%

Indirect auto loans totaled $238.3 million on March 31, 2026, compared to $241.4 million on December 31, 2025

Strong credit quality in the sector, positioned for resiliency across economic cycles(1):

Super Prime Credit (>719): $165.5 million

Prime Credit (719-660): $45.6 million

Near Prime Credit (659-620): $12.7 million

Sub-Prime Credit (619-580): $6.2 million

Deep Sub-Prime Credit (<580): $8.2 million

Loans past due 30+ days: 17 bps of the portfolio

Non-car/truck (RV, boat, etc.) 1% of this portfolio

(1) Credit score level most recently obtained

Source: Company documents 10

Data as of March 31, 2026

Noninterest Income

$ in Millions

1Q'26 Highlights

$12.2

$N13o.0ninterest income was $11.3 million for 1Q'26, compared to $10.9 million for 4Q'25; primarily due to:

22%

$10.6

$11.2

22%

21%

$10.9

$11.3

21%

An increase of $1.5 million in mortgage banking revenues, mainly due to the quarter-over-quarter change of $915 thousand dollars in the MSR fair value adjustment, as can be seen on the following slide

The increase was partially offset by an

20%

$801 thousand loss in a Small Business Investment Company ("SBIC") investment due to negative performance of one of the companies in the fund

$7.0

1Q25 2Q25 3Q25 4Q25 1Q26

$6.0

Noninterest Income % of Revenue

Source: Company documents 11

Note: Mortgage servicing rights fair value ("MSR FV")

1Q'26 Highlights

The increase of $1.5 million in mortgage banking revenues was mainly due to a $915 thousand increase in the quarterly MSR FV adjustment as interest rates that effect the value rose in 1Q'26 as compared to the linked quarter

In 1Q'26, MSRs were written up by $250 thousand as compared to a write down of $665 thousand in 4Q'25

Mortgage Servicing Rights Adjustments

$ in Thousands

1Q'26

4Q'25

3Q'25

2Q'25

1Q'25

Mortgage Banking Revenue

$ 3,918

2,390

2,575

3,606

2,113

MSR FV Adj.

$ 250

(665)

(925)

(156)

(1,585)

MBR Excluding MSR FV Adj

$ 3,668

3,055

3,500

3,762

3,698

MSR FV Adj. QoQ Delta

$ 915

260

(769)

1,429

(3,035)

Source: Company documents 12

Note: Mortgage servicing rights ("MSR"); Mortgage Banking Revenue ("MBR"); MSR Fair Value ("MSR FV")

Three Months Ended March 31, 2026

Total Revenues

$54.1 million

Noninterest Income

$11.3 million

Trust, 7%

Investment

Services, 5%

Service Charges on Deposits, 20%

Other, 5%

Net Interest Income, 79%

Noninterest Income, 21%

Interchange Fees, 28%

Mortgage, 35%

Source: Company documents

Net Interest Income & Margin(1)

$ in Millions

1Q'26 Highlights

$38.5

$42.5 $43.0 $43.0 $42.9

3.54

3.81%

4.04%

4.00%

4.05%

4.07%

Net interest income ("NII") of $42.9 million,

compared to $43.0 million in 4Q'25

Net interest margin, calculated on a tax-equivalent basis, was 4.04% in 1Q26, compared to 4.00% in 4Q25. There was problem loan interest and fee recoveries as noted:

1Q'26 - $545 thousand; positively impacted NIM by 5 bps

3Q'25 - $640 thousand; positively impacted the loan yield by 6 bps

2Q'25 NIM - $1.7 million; positively impacted the loan yield by 17 bps

1Q25 2Q25 3Q25 4Q25 1Q26

Net Interest Income NIM

Source: Company documents 14

(1) Net interest margin is calculated on a tax-equivalent basis

Total Deposits

$ in Millions

$4,027

1Q'26 Highlights

Total deposits of $4.03 billion at 1Q'26, an increase of $153.5 million from 4Q'25, mainly

$3,793

$999

$966

$3,739

$3,881 $3,874

due to organic growth in retail, commercial,

$1,034

and public fund deposits

Cost of interest-bearing deposits decreased to 2.64% from 2.75% in 4Q'25

Cost of deposits was 197 basis points for 1Q'26, 4 basis points lower than 4Q'25

Noninterest-bearing deposits to total deposits were 25.7% at March 31, 2026

$1,024

$1,050

1Q25 2Q25 3Q25 4Q25 1Q26

Total Deposits Noninterest-bearing Deposits

Source: Company documents

Total Deposit Base Breakdown

Total Borrowing Capacity

$2.0 Billion

Retail: 45%

Commercial: 45%

Public Funds: 10%

Rural Markets: 80%

Metro Markets: 20%

Dollars in millions

FHLB:

$1,295

FRB: $702

Average deposit account size is approximately $38 thousand

City Bank's percentage of estimated uninsured or uncollateralized deposits is 23% of total deposits

City Bank had $2.00 billion of available borrowing capacity through the Federal Home Loan Bank of Dallas ("FHLB") and the Federal Reserve Bank of Dallas ("FRB")

No borrowings utilized from these sources during 1Q'26

Source: Company documents 16

Data as of March 31, 2026

Nonperforming Ratios

0.34%

0.32% 0.31%

0.25% 0.26% 0.26%

0.21%

0.16%

0.13%

0.16%

1Q'26 Highlights

Provision for credit losses of $260 thousand in 1Q'26, compared to $1.8 million in 4Q'25

The decrease in provision for 1Q'26 as compared to 4Q25 was largely attributable to the decrease in loan balances, a decrease of $4.8 million in nonperforming

1Q25 2Q25 3Q25 4Q25 1Q26

Nonperforming Assets / Total Assets Nonperforming Loans / Total Loans

loans, and a decrease of $460 thousand in loan net charge-offs

Net Charge-Offs to Average Loans

0.16%

ACL(1) to Total Loans HFI

0.07% 0.06%

0.10%

0.04%

1.40%

1.45%

1.44%

1Q25 2Q25 3Q25 4Q25 1Q26

NCO / Average Loans (Annualized)

1Q25 2Q25 3Q25 4Q25 1Q26

ACL / Total Loans HFI

Source: Company documents 17

Allowance for Credit Losses ("ACL")

Securities & Cash

$567

$571

$570

$471

$552

$635

$603

$722

$536

$ in Millions

$572

1Q25 2Q25 3Q25 4Q25 1Q26

Securities Cash

1Q'26 Securities Composition

Asset Backed Securities 2%

1Q'26 Highlights

Investment securities totaled $602.9 million, a $35.3 million increase from 4Q'25.

All securities are classified as available for sale

All municipal bonds are in Texas; fair value hedges of $117 million

All MBS, CMO, and Asset Backed securities are U.S. Government or GSE

Duration of the securities portfolio was 5.86

CMO's 11%

U.S. Agencies 8%

years at March 31, 2026

Municipal Bonds 29%

$602.9

million

MBS 50%

Source: Company documents

Noninterest Expense

$38.0 $ in Millions

150.0%

1Q'26 Highlights

Noninterest expense increased $2.5 million

$36.0

$34.0

$32.0

66.9%

$33.0

61.1%

$33.5

61.0%

60.7%

$33.0 $33.0

$35.5

65.3%

130.0%

110.0%

90.

from 4Q'25, largely attributable to:

o An increase of $1.8 million in personnel expenses, mainly the result of annual salary adjustments and higher incentive-based compensation expense

$30.0

$28.0

$26.0

$24.0

$22.0

$20.0

1Q25 2Q25 3Q25 4Q25 1Q26

30.0%

10.0%

-10.0%

o Increase of $1.0 million in acquisition related expenses; total for 1Q'26 was

$1.5 million compared to $500 thousand in 4Q'25; these expenses are in professional services and other noninterest expense

Efficiency ratio of 65.3% in 1Q'26 as compared to 61.0% in 4Q'25

Noninterest Expense Efficiency Ratio

Source: Company documents

Balance Sheet Highlights

$ in Millions

$4,646

Tangible Book Value Per Share(1)

$29.65

$4,405

$3,076 $3,103

$3,793

$4,028

$28.14

$29.05

$26.70

$26.05

$444

$505

Total Assets Total Loans

HFI

Total Deposits

Total Stockholders' Equity

1Q25 2Q25 3Q25 4Q25 1Q26

31-Mar-25 31-Mar-26

Source: Company documents 20

(1) Tangible book value per share is a non-GAAP measure. See appendix for the reconciliation of non-GAAP measures to GAAP

Common Equity Tier 1 Ratio

Tangible Common Equity to Tangible Assets Ratio(1)

9.98%

9.64%

10.25% 10.61% 10.48%

13.86%

13.59%

14.41% 14.45%

14.80%

1Q25 2Q25 3Q25 4Q25 1Q26

Tier 1 Capital to Average Assets Ratio

Total Capital to Risk-Weighted Assets Ratio

12.04% 12.12%

12.37% 12.53% 12.68%

18.17%

17.93%

17.34% 17.26% 17.61%

1Q25 2Q25 3Q25 4Q25 1Q26 1Q25 2Q25 3Q25 4Q25 1Q26

Source: Company documents

Note: There was a decline in Total Capital at September 30, 2025 as a result of the redemption of $50 million in subordinated debt that was previously included in Tier 2 capital. 21

(1) Tangible common equity to tangible assets ratio is a non-GAAP measure. See appendix for the reconciliation of non-GAAP measures to GAAP

Merger with BOH Holdings, Inc. Completed

Strengthens Position in Houston Market

Enhances a top-tier community banking presence in one of the fastest-growing major U.S. MSAs

Creates a more balanced, diversified Texas franchise

Expands SPFI's commercial and private banking relationships across Houston and surrounding counties

Building a Bank for the Future

Situated in some of the highest growth markets in the country

Financially Compelling Transaction

11% accretive to EPS with tangible book value earnback under 3 years

Drives improved profitability metrics and enhances long-term shareholder value

Well-structured transaction providing attractive valuation and low execution risk

Adds Key Talent With Aligned Community Values

Preserves a shared focus on relationship-based client service

Provides leadership depth to support continued expansion across high-growth markets

Strong cultural compatibility ensuring smooth integration and sustained franchise momentum

Lubbock

Midland Odessa

Austin

Dallas

Houston

Source: Company documents

South Plains Branch (24)

BOH Branch

(2)

Projected 5-Year

Population CAGR

>1.4%

>1.0%

A Texas-wide Franchise

Deepens SPFI's footprint in the high-growth Houston market

Provides meaningful EPS accretion and attractive TBV earnback (<3.0 years)

Strengthens community banking presence with aligned culture and leadership

Enhances our opportunity to capitalize on recent market disruption

4.02%

Net Interest Margin

210 bps

Cost of Deposits

1Q'26 Combined Pro Forma(1) Highlights

Consolidated BOH Financials

At or as of the first quarter ended March 31, 2026

$632 million of in loans held for investment with a portfolio yield of 6.94%

$596 million of deposits:

Where noninterest bearing deposits represent 16% of total deposits;

and, interest bearing deposits had a cost of 342 basis points

$15 million in borrowings

NIM was 3.90%

BOH had $226 thousand dollars of noninterest income, and their noninterest expense was $4 million dollars for the first quarter, excluding transaction related expenses

Source: Company documents 23

(1) At or as of the first quarter ended March 31, 2026

THE POWER OF RELATIONSHIPS

At SPFI, we build lifelong, trusted relationships so you know you always have someone in your corner that understands you, cares about you, and stands ready to help.

Our Core Purpose is:

To use the power of relationships to help people succeed and live better

HELP ALL STAKEHOLDERS SUCCEED

Employees great benefits and opportunities to grow and make a difference.

Customers personalized advice and solutions to achieve their goals.

Partners responsive, trusted win-win partnerships enabling both parties to succeed together.

Shareholders share in the prosperity and performance of the Bank.

LIVE BETTER

We want to help everyone live better.

At the end of the day, we do what we do to help enhance lives. We create a great place to work, help people achieve their goals, and invest generously in our communities because there's nothing more rewarding than helping people succeed and live better.

South Plains Financial, Inc

Non-GAAP Financial Measures

For the quarter ended

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Pre-tax, pre-provision income

Net income

14,545

15,254 $

16,318

14,605

12,294

Income tax expense

3,816

3,832

4,342

4,020

3,408

Provision for credit losses

260

1,775

500

2,500

420

Pre-tax, pre-provision income

$ 18,621

$ 20,861 $ 21,160

$ 21,125

$ 16,122

As of

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Tangible common equity

Total common stockholders' equity

504,939

493,837

$ 477,802

$ 454,074

$ 443,743

Less: goodwill and other intangibles

(20,327)

(20,448)

(20,580)

(20,732)

(20,884)

Tangible common equity

$ 484,612

$ 473,389

$ $ 457,222

$ $ 433,342

$ $ 422,859

Tangible assets

Total assets

$ 4,646,374

$ 4,480,500

$ $ 4,479,437

$ $ 4,363,674

$ $ 4,405,209

Less: goodwill and other intangibles

(20,327)

(20,448)

(20,580)

(20,732)

(20,884)

Tangible assets

$ 4,626,047

$ 4,460,052

$ $ 4,458,857

$ $ 4,342,942

$ $ 4,384,325

Shares outstanding

16,342,219

16,293,577

16,247,839

16,230,475

16,235,647

Total stockholders' equity to total assets

10.87%

11.02%

10.67%

10.41%

10.07%

Tangible common equity to tangible assets

10.48%

10.61%

10.25%

9.98%

9.64%

Book value per share

30.90

30.31

29.41

27.98

27.33

Tangible book value per share

29.65

29.05

28.14

26.70

26.05

$ $

Source: Company documents 26

$ in thousands, except per share data

Disclaimer

South Plains Financial Inc. published this content on April 28, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 28, 2026 at 21:10 UTC.