South Plains Financial (SPFI) investor relations material

Executive summary

• Achieved full year net income of $58.5 million in 2025, up from $49.7 million in 2024, with diluted EPS rising 17.8% year-over-year to $3.44.

• Q4 2025 net income was $15.3 million and diluted EPS was $0.90, down from Q3 but up year-over-year.

• Entered a definitive agreement to acquire BOH Holdings, Inc. and Bank of Houston, expanding presence in Houston; deal expected to be 11% accretive to EPS in 2027 with tangible book value earnback under 3 years.

• Focused on expanding lending teams, pursuing accretive M&A, and supporting growth in high-growth Texas markets.

• Strong capital position supports organic growth and shareholder returns via dividends and buybacks.

Financial highlights

• Net interest income for Q4 2025 was $43.0 million, flat sequentially and up from $38.5 million in Q4 2024; NIM was 4.00% in Q4, up 25 bps year-over-year.

• Loans held for investment reached $3.14 billion at year-end 2025, up from $3.06 billion in 2024.

• Deposits totaled $3.87 billion at December 31, 2025, up 7% year-over-year.

• Cost of deposits decreased to 2.01% in Q4 2025, down 9 bps sequentially.

• Tangible book value per share rose to $29.05 at year-end 2025, up 14.4% year-over-year.

Outlook and guidance

• Loan growth expected to accelerate to mid to high single digits in 2026, driven by new hires and BOH acquisition.

• NIM expected to remain stable but with some risk of compression due to competitive deposit environment.

• Modest increase in non-interest expense anticipated in Q1 2026 due to hiring and technology investments.

• Continued focus on organic growth and selective M&A, with capacity for another similar-sized acquisition.

• Merger with BOH Holdings, Inc. expected to drive improved profitability and long-term shareholder value.