South Plains Financial, Inc. · NASDAQ:SPFI
South Plains Financial — Q2 2025 Earnings Presentation
23 slides from South Plains Financial's earnings presentation, Jul 16, 2025
Slide 1: South Plains Financial Second Quarter 2025 Earnings Presentation
South Plains Financial Second Quarter 2025 Earnings Presentation July 16, 2025
Slide 2: Safe Harbor Statement and Other Disclosures
Safe Harbor Statement and Other Disclosures FORWARD-LOOKING STATEMENTS This presentation contains, and future oral and written statements of South Plains Financial, Inc. (“South Plains”, “SPFI”, or the “Company”) and City Bank (“City Bank” or the “Bank”) may contain, statements about future events t
Slide 3: Today's Speakers
Today’s Speakers ▪ Elected to the board of directors of First State Bank of Morton, Texas, in 1972 and employed by it in 1979 Curtis C. Griffith ▪ Elected Chairman of the First State Bank of Morton board Chairman & Chief Executive in 1984 Officer ▪ Chairman of the Board of City Bank and the Company
Slide 4: Second Quarter 2025 Highlights
Second Quarter 2025 Highlights Net Income Net Interest Margin (1) Loans Held for Investment Return on Average Assets $14.6 M (“NIM”) 4.07% (“HFI”) $3.10 B (“ROAA”) 1.34% EPS - Diluted Total Deposits Average Yield on Loans Efficiency Ratio $0.86 $3.74 B 6.99% 61.11% ➢ Net income for the second quarte
Slide 5: Loan Portfolio
Loan Portfolio Total Loans HFI 2Q'25 Highlights $ in Millions ✓ Loans HFI increased $23.1 million from 1Q'25, primarily as a result of organic loan growth $3,094 $3,076 $3,099 experienced broadly across the portfolio, partially $3,037 $3,055 offset by a decrease of $52.6 million in multi- family pro
Slide 6: Attractive Markets Poised for Organic Growth
Attractive Markets Poised for Organic Growth ✓ Largest MSA in Texas and fourth largest in the ✓ Sixth largest city in Texas and 22nd largest in nation the U.S. ✓ Steadily expanding population that accounts ✓ Population growth has outpaced the country for over 26% of the state’s population over the l
Slide 7: Major Metropolitan Market Loan Growth
Major Metropolitan Market Loan Growth (1) Total Metropolitan Market Loans 2Q'25 Highlights $ in Millions ✓ Loans HFI in our major metropolitan markets(1) decreased by $26 million, to $1.01 billion during $1,069 $1,049 $1,058 2Q’25 $1,040 $1,014 ✓ Loan Balances in the quarter were impacted by $49.1 m
Slide 8: Loan HFI Portfolio
Loan HFI Portfolio Loan Mix Fixed vs. Variable Rate Fixed - Matures over 1 year Other Commercial 22% Fixed - Matures 12mo or less Consumer, 2% C&D, 4% Residential C&D, 7% 11% Variable - Immediately Repricable Auto, 8% 42% Variable - Mature or Reprice 12mo 19% or less Variable - Mature or Reprice ove
Slide 9: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio NOO CRE(1) Sector Breakdown Details ✓ NOO CRE was 38.3% of total loans HFI, down Other C&D, 21% Residential from 40.0% at March 31, 2025 Construction, 9% Multi-family, 22% ✓ NOO CRE portfolio is made up of $830.9 million of income producing loans and $356.4 million o
Slide 10: Indirect Auto Overview
Indirect Auto Overview Indirect Auto Credit Breakdown Indirect Auto Highlights 0.1% 0.8% ✓ Indirect auto loans totaled $240.6 million at June 30, 2025, compared to $243.4 million at March 31, 2025 6.1% 24.7% ✓ Strong credit quality in the sector, positioned for resiliency across economic cycles(1):
Slide 11: Noninterest Income Overview
Noninterest Income Overview Noninterest Income 2Q'25 Highlights $ in Millions $13.3 ✓ $14.0 Noninterest income was $12.2 million for 2Q'25, $12.7 compared to $10.6 million for 1Q'25; primarily $12.2 due to: $12.0 $10.6 $10.6 o An increase of $1.5 million in mortgage $10.0 banking revenues, mainly as
Slide 12: Diversified Revenue Stream
Diversified Revenue Stream Six Months Ended June 30, 2025 Total Revenues Noninterest Income $54.7 million $12.2 million Investment Trust, 6% Services, 4% Other, 15% Net Interest Service Charges Income, 78% on Deposits, 19% Mortgage, 25% Noninterest Income, 22% Interchange Fees, 31% 12 Source: Compan
Slide 13: Net Interest Income and NIM
Net Interest Income and NIM (1) Net Interest Income & NIM 2Q'25 Highlights $ in Millions $42.5 ✓ Net interest income (“NII”) of $42.5 million, $38.5 $38.5 an increase from $38.5 million in 1Q'25 $37.3 $35.9 ✓ 2Q’25 NIM increased 26 bps to 4.07% as compared to 3.81% in 1Q’25 4.07% ✓ Excluding a $1.7
Slide 14: Deposit Portfolio
Deposit Portfolio Total Deposits 2Q'25 Highlights $ in Millions ✓ Total deposits of $3.74 billion at 2Q'25, a decrease of $53.6 million from 1Q’25 $3,793 $3,625 $3,719 $3,621 $3,739 o The decline in deposits was mainly due to a $73.7 million seasonal decrease in public fund deposits partially offset
Slide 15: Granular Deposit Base & Ample Liquidity
Granular Deposit Base & Ample Liquidity Total Deposit Base Total Borrowing Capacity Breakdown $1.95 Billion Rural Commercial: FHLB: Markets: 47% $1,286 79% Retail: FRB: $668 45% Metro Markets: 21% Public Funds: 8% Dollars in millions ✓ Average deposit account size is approximately $37 ✓ City Bank ha
Slide 16: Credit Quality
Credit Quality Credit Quality Ratios 2Q'25 Highlights 0.81% ✓ Provision for credit losses of $2.5 million in 0.76% 0.79% 2Q'25, compared to $420 thousand in 1Q'25 0.57% 0.59% 0.58% ✓ 2Q'25 provision was largely attributable to 0.34% an increase in specific reserves, net charge- 0.25% 0.16% 0.21% off
Slide 17: Investment Securities
Investment Securities Securities & Cash 2Q'25 Highlights $ in Millions ✓ Investment securities totaled $570 million, a $536 $1.5 million decrease from 1Q'25. $471 $471 $298 $359 ✓ All municipal bonds are in Texas; fair value hedges of $121 million $591 $607 $577 $572 $570 ✓ All MBS, CMO, and Asset B
Slide 18: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency Noninterest Expense 2Q'25 Highlights $36.0 $ in Millions 150.0% ✓ Noninterest expense increased $513 $34.0 $33.5 130.0% thousand from the 1Q’25 which was largely $33.1 $33.0 $32.6 the result of an increase of $267 thousand $32.0 110.0% in personnel expenses and $14
Slide 19: Balance Sheet Growth and Development
Balance Sheet Growth and Development (1) Balance Sheet Highlights Tangible Book Value Per Share $ in Millions $26.70 $4,364 $4,221 $26.05 $3,739 $3,625 $25.75 $25.40 $3,094 $3,099 $24.15 $418 $454 Total Assets Total Loans Total Total 2Q24 3Q24 4Q24 1Q25 2Q25 HFI Deposits Stockholders' Equity 30-Jun-
Slide 20: Strong Capital Base
Strong Capital Base Tangible Common Equity to Tangible Assets Ratio(1) Common Equity Tier 1 Ratio 13.86% 13.53% 13.59% 13.25% 9.77% 9.92% 9.98% 12.61% 9.44% 9.64% 2Q24 3Q24 4Q24 1Q25 2Q25 2Q24 3Q24 4Q24 1Q25 2Q25 Tier 1 Capital to Average Assets Ratio Total Capital to Risk-Weighted Assets Ratio 18.1
Slide 21: SPFI's Core Purpose and Values Align
SPFI’s Core Purpose and Values Align Centered on Relationship-Based Business 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 th
Slide 22: Appendix
South Plains Financial, Inc. Appendix
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the quarter ended June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 Pre-tax, pre-provision income Net income $ 14,605 $ 12,294 $ 16,497 $ 11,212 $ 11,134 Income tax expense 4,020 3,408 4,222 3,094 3,116 Provision for credit losses 2,500 4
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