SPFI

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the quarter's performance to the successful integration of the Bank of Houston (BOH), which significantly expanded the asset base to approximately $5.4 billion. The leadership transition plan is progressing with Cory Newsom set to succeed Curtis Griffith as CEO on January 1, 2027, ensuring continuity of the bank's relationship-centered culture. Performance was bolstered by resilient profitability and a stable net interest margin, supported by higher-than-expected deposit performance despite seasonal headwinds. Strategic positioning remains focused on high-growth Texas markets, leveraging a talented lending team to drive organic growth while maintaining a conservative credit culture. The bank is actively evaluating the acquired BOH balance sheet to exit higher-cost funding sources and non-core relationships that do not align with long-term profitability goals. Market dynamics in Texas remain healthy, though management maintains a cautious stance due to elevated interest rates and persistent inflationary pressures. Management remains confident in delivering full-year organic loan growth in the mid-single digits, supported by a strong commercial pipeline and increased banker headcount. Guidance assumes that elevated loan paydowns will continue to act as a headwind to overall growth in future periods. The bank expects moderate deposit growth in the second half of the year, starting from a relatively higher base than in previous years. Profitability targets rely on the ability to reduce higher-cost brokered deposits and non-core funding as they mature to maintain the net interest margin. Future M&A remains a strategic pillar, though management emphasizes a highly disciplined approach that prioritizes cultural fit and strict financial criteria over growth for growth's sake. The quarter included approximately $1.1 million in acquisition-related expenses, which management expects to be largely behind the company starting in the third quarter. An uptick in classified and non-performing loans was noted, primarily stemming from the acquired BOH portfolio, which was anticipated during the due diligence process. The CEO's recent stock sale was clarified as part of a long-term estate planning strategy and to fund personal agricultural business investments, rather than a reflection of outlook. The Board authorized a 6% increase to the quarterly dividend, marking the 29th consecutive dividend payment and reflecting a strong capital position. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management has already paid off BOH's Federal Home Loan Bank borrowings and plans to let high-cost brokered CDs roll off as they mature. The goal is to bring BOH's cost of funds in line with South Plains' historical costs, which should help maintain the net interest margin around the 4% range. Recent paydowns were described as normal course of business, often driven by clients selling assets to realize gains. Management believes the increased production capacity from new hires and a building pipeline will be sufficient to overcome these paydown headwinds. Non-interest expenses are expected to decline in the third quarter as conversion and acquisition-related costs subside. The early conversion in May allowed the bank to begin realizing cost synergies faster than originally anticipated. Management has already begun deploying treasury management and other service offerings to the legacy BOH customer base. A more meaningful uptick in non-interest income from these cross-sell efforts is expected to manifest in the fourth quarter results.

South Plains Financial (SPFI) came out with quarterly earnings of $0.96 per share, beating the Zacks Consensus Estimate of $0.86 per share. This compares to earnings of $0.86 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.63%. A quarter ago, it was expected that this company would post earnings of $0.88 per share when it actually produced earnings of $0.85, delivering a surprise of -3.41%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. South Plains Financial, which belongs to the Zacks Banks - Southeast industry, posted revenues of $64.49 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.07%. This compares to year-ago revenues of $54.67 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. South Plains Financial shares have added about 14.1% since the beginning of the year versus the S&P 500's gain of 10.1%. While South Plains Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for South Plains Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.95 on $65.1 million in revenues for the coming quarter and $3.79 on $248.85 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, John Marshall Bancorp, Inc. (JMSB), is yet to report results for the quarter ended June 2026. The results are expected to be released on July 22. This company is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of +22.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. John Marshall Bancorp, Inc.'s revenues are expected to be $17.41 million, up 12.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report South Plains Financial, Inc. (SPFI) : Free Stock Analysis Report John Marshall Bancorp, Inc. (JMSB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Assets: Approximately $5.4 billion at the end of the second quarter. Loans Held for Investment: Increased by $667.3 million to $3.77 billion compared to the linked quarter. Yield on Loans: 6.81% in the second quarter, down slightly from 6.83% in the first quarter. Non-Interest Income: $14.1 million for the second quarter, up from $11.3 million in the linked quarter. Diluted Earnings Per Share: $0.96 compared to $0.85 from the linked quarter. Net Interest Income: $50.3 million for the second quarter, up $7.4 million from the first quarter. Net Interest Margin: 4% in the second quarter compared to 4.04% in the linked quarter. Deposits: Increased by $613 million to $4.64 billion for the linked quarter. Allowance for Credit Losses to Total Loans: 1.41% at the end of the second quarter. Non-Interest Expense: Increased by $4.3 million to $39.9 million in the second quarter compared to the linked quarter. Tangible Common Equity to Tangible Assets: 10.47% at the end of the second quarter. Tangible Book Value Per Share: $29.57 as of June 30, 2026. Warning! GuruFocus has detected 6 Warning Sign with TRV. Is SPFI fairly valued? Test your thesis with our free DCF calculator. Release Date: July 17, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. South Plains Financial Inc (NASDAQ:SPFI) reported strong profitability for the second quarter, with diluted earnings per share increasing to $0.96 from $0.85 in the previous quarter. The successful acquisition and integration of the Bank of Houston added $632 million in loans and $596 million in deposits, contributing significantly to the company's growth. The company maintained a stable net interest margin of 4% despite economic uncertainties, demonstrating effective balance sheet management. Non-interest income increased to $14.1 million, driven by improved mortgage banking revenues and growth in bank card services and interchange revenue. The Board of Directors authorized a 6% increase in the quarterly dividend, marking the 29th consecutive dividend, reflecting confidence in the company's financial health. The company experienced elevated levels of loan payoffs, which are expected to continue as a headwind to overall loan growth. The cost of deposits increased by 11 basis points, reflecting ongoing challenges in managing funding costs amid competitive pressures. Non-interest expense rose by $4.3 million due to acquisition-related expenses and higher incentive-based compensation, impacting overall cost efficiency. The ratio of non-interest-bearing deposits decreased slightly, influenced by the Bank of Houston's lower ratio at acquisition. There was an uptick in classified and non-performing loans, primarily from the acquired Bank of Houston loans, necessitating active management by the credit team. Q: Can you provide an outlook on the forward margin and the impact of Bank of Houston's cost of funds management? A: Steven Crockett, CFO, mentioned that while some work was done during the quarter, most opportunities to optimize Bank of Houston's cost of funds are ahead. The conversion was completed midway through the quarter, allowing better visibility and understanding. Curtis Griffith, CEO, added that they have already paid off borrowings to the Federal Home Loan Bank and expect further opportunities to align costs with historical levels. Q: Do you think the cost of funds can be managed lower despite increased deposit competition? A: Steven Crockett, CFO, stated that while the rate outlook is a moving target, they are in a good position. The focus is on maintaining liquidity to fund anticipated loans, and they aim to manage the net interest margin within the current range. Q: Will expenses decrease in the third quarter following the Bank of Houston acquisition? A: Steven Crockett, CFO, expects expenses to decline as acquisition-related costs are largely behind them. Cory Newsom, President, noted that early conversion allowed for faster expense reduction than anticipated. Q: How do you view paydowns as a headwind to future loan growth, and has the commercial pipeline continued to build? A: Brent Bates, Chief Credit Officer, expressed confidence in growth prospects due to increased bankers and pipeline growth. Cory Newsom, President, highlighted that despite paydowns and conversion-related noise, they maintained a strong loan position and expect future growth to offset paydowns. Q: What are the biggest drivers of earnings growth over the next two to three years? A: Cory Newsom, President, emphasized a focus on organic growth, lender hires, and potential acquisitions. They are open to another acquisition but prioritize organic growth as a strong driver for impactful results. Q: What is your comfort level with the loan-to-deposit ratio, and how do you plan to manage it? A: Steven Crockett, CFO, stated they have room to run the ratio up but prefer not to exceed 85%. Curtis Griffith, CEO, added that they might adjust both loans and deposits, focusing on maintaining or improving the net interest margin. Q: What drove the elevated payoffs this quarter, and do you expect this trend to continue? A: Brent Bates, Chief Credit Officer, explained that payoffs were due to normal business events, such as asset sales by clients. He remains optimistic about overcoming payoffs with increased production and pipeline growth. Q: What are your thoughts on potential M&A targets following the Bank of Houston acquisition? A: Cory Newsom, President, stated they are focused on Texas and seek accretive opportunities that align with their culture. They aim for targets that complement their strategic goals and fit well with their existing operations. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in South Plains Financial, Inc.? Here are five stocks we like better. South Plains Financial reported Q2 2026 diluted EPS of $0.96, up from $0.85, with higher net interest income and improved non-interest income helping results. The Bank of Houston acquisition was a major driver of balance sheet growth and earnings. The Bank of Houston integration is largely complete, and management expects acquisition-related expenses to ease in Q3 while cost savings and funding optimization continue. Loans and deposits both jumped sharply from the acquisition, though South Plains is still focused on managing higher-cost funding and preserving margins. Management kept a positive outlook for loan growth, saying underlying demand remains healthy despite some paydowns and that full-year loan growth should land in the mid-single digits. The company also raised its quarterly dividend 6% to $0.18, extending its dividend streak to 29 consecutive quarters. South Plains Financial (NASDAQ:SPFI) reported higher second-quarter 2026 earnings as its recent Bank of Houston acquisition contributed to balance sheet growth, while management said the company remains focused on organic loan expansion, expense discipline and maintaining profitability amid an elevated interest-rate environment. The Lubbock, Texas-based parent of City Bank posted diluted earnings per share of $0.96 for the quarter, up from $0.85 in the linked quarter, Chief Financial Officer and Treasurer Steve Crockett said on the company’s earnings call. Crockett said the increase was primarily driven by the Bank of Houston acquisition and improved non-interest income. → Why ASML’s AI Monopoly Is Still Getting Stronger Net interest income rose to $50.3 million, up $7.4 million from the first quarter, largely due to the addition of $667 million of interest-earning assets from Bank of Houston. The company’s tax-equivalent net interest margin was 4.00%, compared with 4.04% in the first quarter. Crockett noted that the first-quarter margin was aided by 5 basis points from a non-accrual loan interest recovery, and said the company has held its margin steady over the past four quarters when excluding problem-loan interest and fee recoveries. President Cory Newsom said South Plains has largely completed the integration of Bank of Houston, with the systems conversion occurring in May, roughly three months after the transaction closed. Loans held for investment increased by $677.3 million from the linked quarter to $3.77 billion. The increase included $632 million of loans from Bank of Houston and $35 million of organic loan growth. → Cintas Keeps Beating Expectations—And the Story Isn’t Over Loans in the company’s major metropolitan markets of Dallas, Houston and El Paso increased by $682 million to $1.69 billion, driven by the acquired Bank of Houston loans and $50 million of organic growth. Newsom said the acquired loan portfolio has performed in line with expectations and that South Plains sees further opportunities to optimize the acquired balance sheet by evaluating higher-cost funding sources and certain relationships. During the question-and-answer session, Crockett said some work had already been done to manage Bank of Houston funding costs, with more expected in the third quarter. Chairman and Chief Executive Officer Curtis Griffith said Bank of Houston’s Federal Home Loan Bank borrowings had been paid off. → Blueprint for a Billion: Nebius Group Secures the AI Floor Management also said expense savings tied to the deal should begin to show more clearly after the second quarter. Non-interest expense rose by $4.3 million to $39.9 million, with the increase primarily reflecting $2.7 million in core operating expenses related to Bank of Houston and higher incentive-based compensation. Crockett said the quarter included about $1.1 million of acquisition-related expenses, including $710,000 in personnel expenses, and that acquisition expenses should be largely behind the company in the third quarter. Newsom said underlying loan demand remains healthy, even as elevated payoffs continue to create a headwind. During the quarter, two loans totaling $37.5 million paid off. He said the company remains confident in delivering full-year loan growth guidance in the mid-single digits. Chief Credit Officer Brent Bates said the company feels “really good” about second-half growth prospects, citing the increased number of bankers from the acquisition and hiring activity, as well as a stronger pipeline. He said recent payoffs were normal-course events, including asset sales by clients, rather than loans pushed out of the portfolio. Newsom said the Bank of Houston conversion created internal disruption during the quarter, including training and systems work, but the company still maintained loan growth. He said the completion of that integration work should help offset future paydowns. Deposits increased by $613 million from the linked quarter to $4.64 billion. Crockett said Bank of Houston contributed $596 million of acquired deposits, while South Plains generated $17 million of organic deposit growth. He described organic deposit growth in the second quarter as a strong result given typical seasonal outflows tied to tax payments and public funds. Non-interest-bearing deposits represented 24.8% of total deposits at quarter-end, down from 25.7% at the end of the first quarter. Crockett said the decline was largely due to Bank of Houston’s non-interest-bearing deposit ratio being about 16% at acquisition. The company’s cost of deposits increased 11 basis points, in line with prior expectations. Management said South Plains has room to reduce higher-cost brokered deposits and non-core funding sources as they mature. Asked about the loan-to-deposit ratio, Crockett said the company has been operating near the middle of its preferred range and has some room to move higher, though he indicated management would not want the ratio to get much above 85%. South Plains generated $14.1 million of non-interest income in the quarter, up from $11.3 million in the linked quarter. Newsom said the increase was primarily due to a $929,000 rise in mortgage banking revenue as mortgage originations improved during the spring selling season, along with an $894,000 increase in bank card services and interchange revenue tied to continued customer card usage growth and incentives received during the period. Newsom said mortgage volumes remain subdued due to higher interest rates, but the business continues to perform well in a low-transaction environment and is positioned for an eventual upturn if rates normalize lower. Non-interest income represented 22% of bank revenues, essentially flat with the linked quarter. Crockett said the allowance for credit losses to total loans was 1.41% at quarter-end, stable with the prior quarter. The company recorded a $350,000 provision for credit losses related to organic loan growth and net charge-off activity. Crockett said classified and non-performing loans increased, primarily from acquired Bank of Houston loans, which management had expected. South Plains remained well capitalized, with tangible common equity to tangible assets of 10.47% at the end of the second quarter. Tangible book value per share was $29.57, compared with $29.65 at the end of the first quarter. Griffith also discussed the company’s planned leadership transition. He will retire as CEO at the end of 2026, with Newsom set to become CEO on Jan. 1, 2027. Griffith will remain chairman of the board in a non-executive capacity and continue as a consultant to the company. Griffith said the transition has been planned for many years and described Newsom as the right leader to guide the company’s next phase. Newsom said South Plains remains open to additional acquisitions but will be disciplined, focusing on potential partners in Texas that align with the company’s culture, credit discipline and community banking focus. He said organic growth remains the company’s primary focus. The board authorized a 6% increase in the quarterly dividend to $0.18 per share on July 15, which Newsom said will mark the company’s 29th consecutive dividend. South Plains Financial, Inc is the bank holding company for South Plains Bank, a community-oriented financial institution headquartered in Lubbock, Texas. The company operates as a full-service commercial bank, providing a broad spectrum of banking solutions to individuals, small businesses and agricultural clients. Its principal subsidiary, South Plains Bank, holds state and national banking charters and is subject to regulatory oversight by the Federal Reserve and various state banking authorities. The company’s product offerings include traditional deposit accounts such as checking, savings and money market accounts, as well as time deposits. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "South Plains Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

For the quarter ended June 2026, South Plains Financial (SPFI) reported revenue of $64.49 million, up 18% over the same period last year. EPS came in at $0.96, compared to $0.86 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $64.45 million, representing a surprise of +0.07%. The company delivered an EPS surprise of +11.63%, with the consensus EPS estimate being $0.86. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how South Plains Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Total Nonperforming Assets: $10.08 million versus the two-analyst average estimate of $6.05 million. Efficiency ratio: 61.6% versus the two-analyst average estimate of 59.5%. Nonperforming Loans: $9.51 million compared to the $5.07 million average estimate based on two analysts. Net charge-offs (recoveries) to average loans outstanding (annualized): 0.1% versus 0.1% estimated by two analysts on average. Net Interest Margin (FTE): 4% versus 4% estimated by two analysts on average. Average Balance - Total interest-earning assets: $5.07 billion versus the two-analyst average estimate of $5.12 billion. Net Interest Income: $50.35 million versus $51.02 million estimated by two analysts on average. Net Interest Income (FTE): $50.58 million versus the two-analyst average estimate of $51.16 million. Total Noninterest Income: $14.14 million compared to the $13.3 million average estimate based on two analysts. View all Key Company Metrics for South Plains Financial here>>> Shares of South Plains Financial have returned +8.7% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report South Plains Financial, Inc. (SPFI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

LUBBOCK, Texas, July 17, 2026 (GLOBE NEWSWIRE) -- South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the “Company”), the parent company of City Bank (“City Bank” or the “Bank”), today reported its financial results for the quarter ended June 30, 2026. Second Quarter 2026 Highlights Net income for the second quarter of 2026 was $19.0 million, compared to $14.5 million for the first quarter of 2026 and $14.6 million for the second quarter of 2025. Diluted earnings per share for the second quarter of 2026 was $0.96, compared to $0.85 for the first quarter of 2026 and $0.86 for the second quarter of 2025. Average cost of deposits for the second quarter of 2026 was 208 basis points, compared to 197 basis points for the first quarter of 2026 and 214 basis points for the second quarter of 2025. Net interest margin, on a tax-equivalent basis, was 4.00% for the second quarter of 2026, compared to 4.04% for the first quarter of 2026 and 4.07% for the second quarter of 2025. Return on average assets for the second quarter of 2026 was 1.44%, compared to 1.31% for the first quarter of 2026 and 1.34% for the second quarter of 2025. Tangible book value (non-GAAP) per share was $29.57 as of June 30, 2026, compared to $29.65 as of March 31, 2026 and $26.70 as of June 30, 2025. The consolidated total risk-based capital ratio, common equity tier 1 risk-based capital ratio, and tier 1 leverage ratio at June 30, 2026 were 16.53%, 14.10%, and 12.20%, respectively. As previously reported, the Company completed the merger of BOH Holdings, Inc. (“BOH”) with and into South Plains, with South Plains continuing as the surviving corporation, and the merger of BOH’s wholly-owned subsidiary, Bank of Houston, with and into City Bank, with City Bank continuing as the surviving bank, all effective on April 1, 2026. As of March 31, 2026, BOH had total assets of $685.0 million, total loans of $631.9 million, and total deposits of $595.6 million. Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “We delivered a strong second quarter highlighted by solid profitability, stable credit quality and the successful integration of Bank of Houston, which has strengthened our position in Houston, one of Texas’ most attractive banking markets. As I prepare to retire as Chief Executive Officer at year-end, I am incredibly proud of what our employees have accomplished and the Company we have built together over the past four decades. The Bank is in a position of strength, and our leadership transition reflects years of thoughtful planning designed to ensure continuity for our customers, employees and shareholders. I remain highly confident in South Plains’ future and believe Cory is the right leader to guide the organization as we continue to grow earnings, deepen customer relationships and build on the culture that has been central to our success. I look forward to continuing to serve as Chairman of South Plains and City Bank as Cory and our talented leadership team build on our momentum and execute the next phase of our growth strategy.” Cory Newsom, South Plains’ President, added, “I am honored by the Board’s confidence and am excited to lead South Plains into its next chapter. Our second quarter results demonstrate the strength of our relationship-based banking model, disciplined credit culture and proven growth strategy. Looking ahead, we remain focused on expanding our lending platform in high-growth Texas markets, attracting experienced bankers who fit our culture, optimizing the Bank of Houston acquisition and pursuing disciplined growth opportunities that enhance long-term shareholder value. With a strong balance sheet, healthy loan pipeline and exceptional team, we believe South Plains is well positioned for continued success.” Results of Operations, Quarter Ended June 30, 2026 Net Interest Income Net interest income was $50.3 million for the second quarter of 2026, compared to $42.9 million for the first quarter of 2026 and $42.5 million for the second quarter of 2025. Net interest margin, calculated on a tax-equivalent basis, was 4.00% for the second quarter of 2026, compared to 4.04% for the first quarter of 2026 and 4.07% for the second quarter of 2025. The average yield on loans was 6.81% for the second quarter of 2026, compared to 6.83% for the first quarter of 2026 and 6.99% for the second quarter of 2025. The average cost of deposits was 208 basis points for the second quarter of 2026, which is 11 basis points higher than the first quarter of 2026 and 6 basis points lower than the second quarter of 2025. The increase from the first quarter of 2026 was due to the higher cost of deposits on the Bank of Houston acquired deposits. Interest income was $75.0 million for the second quarter of 2026, compared to $62.6 million for the first quarter of 2026 and $64.1 million for the second quarter of 2025. Interest income in the second quarter of 2026 increased $12.4 million compared to the first quarter of 2026 and increased $10.9 million compared to the second quarter of 2025. These increases were primarily due to the acquisition of BOH’s approximately $667 million of interest-earning assets. Interest expense was $24.7 million for the second quarter of 2026, compared to $19.8 million for the first quarter of 2026 and $21.6 million for the second quarter of 2025. Interest expense in the second quarter of 2026 increased $4.9 million compared to the first quarter of 2026 and increased $3.1 million compared to the second quarter of 2025. These increases were mainly attributable to the acquisition of BOH’s approximately $611 million of interest-bearing liabilities, with the year-over-year comparison being partially offset by interest-bearing deposit growth in the first quarter of 2026. Noninterest Income and Noninterest Expense Noninterest income was $14.1 million for the second quarter of 2026, compared to $11.3 million for the first quarter of 2026 and $12.2 million for the second quarter of 2025. The increase from the first quarter of 2026 was primarily due to an increase of $929 thousand in mortgage banking revenues, mainly as a result of improved mortgage originations during the quarter, and an increase of $894 thousand in bank card services and interchange revenue, mainly as a result of continued growth in customer card usage and incentives received during the period. Additionally, there was an $801 thousand loss in a Small Business Investment Company (“SBIC”) investment that lowered other noninterest income in the first quarter of 2026. The increase in noninterest income for the second quarter of 2026 as compared to the second quarter of 2025 was primarily due to an increase of $1.2 million in mortgage banking revenues, mainly as a result of the change in the fair value adjustment of the mortgage servicing rights assets – a write-up of $515 thousand in the second quarter of 2026 compared to a write-down of $156 thousand in the second quarter of 2025 – based on interest rate changes during the respective quarters. Noninterest expense was $39.9 million for the second quarter of 2026, compared to $35.5 million for the first quarter of 2026 and $33.5 million for the second quarter of 2025. The $4.3 million increase from the first quarter of 2026 primarily resulted from an increase of $2.7 million in core operating expenses related to the recent acquisition and higher incentive-based compensation expense. There was approximately $1.1 million of acquisition-related expenses in the second quarter of 2026, of which $710 thousand was for personnel expenses, compared to $1.5 million in the first quarter of 2026, of which $1.2 million was for professional services. The $6.3 million increase in noninterest expense for the second quarter of 2026 as compared to the second quarter of 2025 was largely the result of the $2.7 million increase in core operating expenses related to the recent acquisition, annual salary adjustments and new lenders hired, and $1.1 million in acquisition-related expenses. Loan Portfolio and Composition Loans held for investment were $3.77 billion as of June 30, 2026, compared to $3.10 billion as of March 31, 2026 and $3.10 billion as of June 30, 2025. The increase of $667.3 million during the second quarter of 2026 as compared to the first quarter of 2026 occurred as a result of $631.9 million in loans from the recent acquisition and $35.4 million of organic loan growth during the quarter. The organic growth was net of two loan payoffs totaling $37.5 million during the quarter. As of June 30, 2026, loans held for investment increased $671.9 million as compared to June 30, 2025, primarily as a result of acquisition growth noted above. Deposits and Borrowings Deposits totaled $4.64 billion as of June 30, 2026, compared to $4.03 billion as of March 31, 2026 and $3.74 billion as of June 30, 2025. Deposits increased by $613.0 million in the second quarter of 2026 from March 31, 2026. Deposits increased by $901.7 million at June 30, 2026 as compared to June 30, 2025. Noninterest-bearing deposits were $1.15 billion as of June 30, 2026, compared to $1.03 billion as of March 31, 2026 and $998.8 million as of June 30, 2025. Noninterest-bearing deposits represented 24.8% of total deposits as of June 30, 2026. The quarterly and year-over-year change in total deposits was primarily due to $595.6 million in deposits from the recent acquisition. Additionally, the year-over-year change had $288.6 million in organic growth broadly across the deposit portfolio. Asset Quality The Company recorded a provision for credit losses in the second quarter of 2026 of $350 thousand, compared to $260 thousand in the first quarter of 2026 and $2.5 million in the second quarter of 2025. The decrease in provision for the year-over-year comparison was largely attributable to activity in the second quarter of 2025 which included an increase in specific reserves, increased loan balances, and several credit quality downgrades. The ratio of allowance for credit losses to loans held for investment was 1.41% as of June 30, 2026, compared to 1.44% as of March 31, 2026 and 1.45% as of June 30, 2025. The ratio of nonperforming assets to total assets was 0.19% as of June 30, 2026, compared to 0.13% as of March 31, 2026 and 0.25% as of June 30, 2025. Annualized net charge-offs were 0.06% for the second quarter of 2026, compared to 0.04% for the first quarter of 2026 and 0.06% for the second quarter of 2025. Capital Book value per share increased to $33.43 at June 30, 2026, compared to $30.90 at March 31, 2026. The change was primarily driven by the issuance of 2.8 million shares for the BOH acquisition at $41.90 per share. The increase was also the result of $15.7 million of net income after dividends paid during the second quarter of 2026. The ratio of tangible common equity to tangible assets (non-GAAP) stayed essentially flat at 10.47% at June 30, 2026. Conference Call South Plains will host a conference call to discuss its second quarter 2026 financial results today, July 17, 2026, at 8:30 a.m., Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-9716 (international callers please dial 1-201-493-6779) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call and conference materials will be available on the Company’s website at https://www.spfi.bank/news-events/events. A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed on the investor section of the Company’s website as well as by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671). The pin to access the telephone replay is 13759880. The replay will be available until July 31, 2026. About South Plains Financial, Inc. South Plains is the bank holding company for City Bank, a Texas state-chartered bank headquartered in Lubbock, Texas. City Bank is one of the largest independent banks in West Texas and has additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. South Plains provides a wide range of commercial and consumer financial services to small and medium-sized businesses and individuals in its market areas. Its principal business activities include commercial and retail banking, along with investment, trust and mortgage services. Please visit https://www.spfi.bank for more information. Non-GAAP Financial Measures Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Pre-Tax, Pre-Provision Income. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release. Available Information The Company routinely posts important information for investors on its web site (under www.spfi.bank and, more specifically, under the News & Events tab at www.spfi.bank/news-events/press-releases). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this document. Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect South Plains’ current views with respect to future events and South Plains’ financial performance. Any statements about South Plains’ expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. South Plains cautions that the forward-looking statements in this press release are based largely on South Plains’ expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond South Plains’ control. Factors that could cause such changes include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; slower economic growth rates or potential recession in the United States and our market areas; uncertainty or perceived instability in the banking industry as a whole; increased competition for deposits in our market areas among traditional and nontraditional financial services companies, and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to a continuation of the elevated interest rate environment or future reductions in interest rates and a resulting decline in net interest income; the persistent inflationary pressures in the United States; the uncertain impacts of  current and future monetary policies of the Board of Governors of the Federal Reserve System; changes in unemployment rates in the United States and our market areas; adverse changes in customer spending, borrowing and savings habits; elevated asset prices; declines in housing and commercial real estate values and prices; a deterioration of the credit rating for U.S. long-term sovereign debt or the impact of uncertain or changing political conditions, including federal government shutdowns and uncertainty regarding United States fiscal debt, deficit and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, military conflicts (including the conflicts in the Middle East, the possible expansion of such conflicts and potential geopolitical and economic consequences), acts of terrorism, geopolitical instability, domestic civil unrest or other external events, including as a result of the impact of the policies of the current U.S. presidential administration or Congress; the impacts of tariffs, sanctions, and other trade policies of the United States and its global trading counterparts and the resulting impact on the Company and its customers; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; the risks related to the development, implementation, use and management of emerging technologies, including digital assets, artificial intelligence and machine learning; potential costs related to the impacts of climate change; current or future litigation, regulatory examinations or other legal and/or regulatory actions; our ability to recognize the expected benefits and synergies of our completed acquisitions; changes in accounting principles and standards, including those related to loan loss recognition under the current expected credit loss, or CECL, methodology; and changes in applicable laws, regulations, or policies in the United States. Additional information regarding these risks and uncertainties to which South Plains’ business and future financial performance are subject is contained in South Plains’ most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and other documents South Plains files or furnishes with the SEC from time to time, which are available on the SEC’s website, www.sec.gov. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which South Plains is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Any forward-looking statements presented herein are made only as of the date of this press release, and South Plains does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement. Source: South Plains Financial, Inc. South Plains Financial, Inc.Consolidated Financial Highlights - (Unaudited)(Dollars in thousands, except share data) (1)  Net interest margin is calculated as the annual net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets. South Plains Financial, Inc.Average Balances and Yields - (Unaudited)(Dollars in thousands) (1)  Average loan balances include nonaccrual loans and loans held for sale.(2)  Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets. South Plains Financial, Inc.Average Balances and Yields - (Unaudited)(Dollars in thousands) (1)  Average loan balances include nonaccrual loans and loans held for sale. (2)  Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets. South Plains Financial, Inc.Consolidated Balance Sheets(Unaudited)(Dollars in thousands) South Plains Financial, Inc.Consolidated Statements of Income(Unaudited)(Dollars in thousands) South Plains Financial, Inc.Loan Composition(Unaudited)(Dollars in thousands) South Plains Financial, Inc.Deposit Composition(Unaudited)(Dollars in thousands) South Plains Financial, Inc.Reconciliation of Non-GAAP Financial Measures (Unaudited)(Dollars in thousands)