South Plains Financial (SPFI) investor relations material

Executive summary

• Net income for Q2 2026 was $19.0 million, up from $14.5 million in Q1 2026, with diluted EPS rising to $0.96 from $0.85 sequentially.

• Leadership transition announced: CEO to retire at year-end, with the President set to assume the CEO role in January 2027; outgoing CEO remains as non-executive Chairman and consultant.

• Completed and integrated the Bank of Houston (BOH) acquisition, significantly expanding presence in Houston and major Texas markets.

• Bank has grown to $5.4 billion in assets, driven by organic growth and acquisitions.

• Focus remains on disciplined organic loan growth, strategic M&A, and maximizing operational efficiency.

Financial highlights

• Loans held for investment increased by $677.3 million to $3.77 billion, with $632 million from BOH and $35 million organic growth.

• Net interest income rose to $50.3 million, up from $42.9 million in Q1 2026, driven by BOH's $667 million in interest-earning assets.

• Diluted EPS was $0.96, up from $0.85 in the previous quarter, reflecting acquisition and non-interest income gains.

• Noninterest income reached $14.1 million, up from $11.3 million, mainly due to higher mortgage banking and card services revenue.

• Noninterest expense increased to $39.9 million, primarily due to acquisition-related costs and higher compensation.

Outlook and guidance

• Full-year loan growth guidance remains in the mid-single digits, despite ongoing paydowns.

• Margin management focus continues, with opportunities to reduce higher-cost funding and optimize BOH cost of funds.

• Expense savings from BOH integration expected to materialize in Q3 as acquisition costs subside.

• Cross-sell initiatives for treasury management and other services to BOH customers underway, with revenue impact expected by Q4.

• The BOH acquisition is expected to be 11% accretive to EPS with tangible book value earnback under three years.