South Plains Financial (SPFI) investor relations material

Executive summary

• Net income for Q2 2026 was $19.0 million ($0.96 per diluted share), up from $14.5 million in Q1 2026 and $14.6 million in Q2 2025, with the BOH acquisition significantly expanding presence in Houston and major Texas markets.

• 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.

• The acquisition of BOH Holdings, Inc. was completed on April 1, 2026, adding $685 million in assets, $631.9 million in loans, and $595.6 million in deposits.

• Loans held for investment increased to $3.77 billion, and total deposits rose to $4.64 billion as of June 30, 2026.

• Noninterest income grew to $14.1 million, driven by higher mortgage banking and card services revenue.

Financial highlights

• Net interest income was $50.3 million, up from $42.9 million in Q1 2026 and $42.5 million in Q2 2025, with net interest margin at 4.00%.

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

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

• Deposits grew by $613 million to $4.64 billion, with $596 million from BOH and $17 million organic growth.

• Efficiency ratio improved to 61.6% from 65.3% in the prior quarter.

Outlook and guidance

• Management expects continued moderate deposit growth in the second half, starting from a higher base, and full-year loan growth guidance remains in the mid-single digits.

• 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.