South Plains Financial (SPFI) investor relations material

Executive summary

• Net income for Q1 2026 was $14.5 million, down from $15.3 million in Q4 2025 but up from $12.3 million in Q1 2025, with diluted EPS at $0.85 versus $0.90 sequentially.

• Delivered solid Q1 2026 results with strong profitability, improved credit quality, and disciplined balance sheet management amid an uncertain market backdrop.

• Completed the BOH Holdings and Bank of Houston acquisition on April 1, 2026, adding $685 million in assets and strengthening Houston market presence.

• Continued focus on organic growth through strategic lender hires and selective, accretive M&A in major Texas markets.

Financial highlights

• Net interest income was $43 million, flat sequentially; net interest margin (NIM) was 4.04%, up from 4.00% in Q4 2025 and 3.81% year-over-year.

• Noninterest income rose to $11.3 million, driven by a $1.5 million increase in mortgage banking revenues and favorable MSR fair value adjustments.

• Noninterest expense increased to $35.5 million, reflecting higher personnel, professional service, and acquisition-related costs.

• Tangible book value per share increased to $29.65 from $29.05 at year-end 2025 and $26.05 year-over-year.

• Provision for credit losses was $260,000, down from $1.8 million in Q4 2025.

Outlook and guidance

• Loan growth guidance for 2026 reaffirmed at low to mid-single digits, with expectations to hit the lower end of the range.

• Deposit growth expected to be flat to down in Q2 due to seasonal outflows, returning to growth in the second half of 2026.

• BOH merger expected to be 11% accretive to earnings in 2027, with tangible book value earn-back under 3 years.

• Management remains confident in long-term value creation despite near-term economic uncertainty and headwinds to loan growth.