South Plains Financial, Inc. Reports Fourth Quarter and Year-End 2024 Financial Results

LUBBOCK, Texas, Jan. 24, 2025 (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 and year ended December 31, 2024. Fourth Quarter 2024 Highlights Net income for the fourth quarter of 2024 was $16.5 million, compared to $11.2 million for the third quarter of 2024 and $10.3 million for the fourth quarter of 2023.Diluted earnings per share for the fourth quarter of 2024 was $0.96, compared to $0.66 for the third quarter of 2024 and $0.61 for the fourth quarter of 2023.Average cost of deposits for the fourth quarter of 2024 was 229 basis points, compared to 247 basis points for the third quarter of 2024 and 224 basis points for the fourth quarter of 2023.Net interest margin, calculated on a tax-equivalent basis, was 3.75% for the fourth quarter of 2024, compared to 3.65% for the third quarter of 2024 and 3.52% for the fourth quarter of 2023.Return on average assets for the fourth quarter of 2024 was 1.53% annualized, compared to 1.05% annualized for the third quarter of 2024 and 0.99% annualized for the fourth quarter of 2023.Tangible book value (non-GAAP) per share was $25.40 as of December 31, 2024, compared to $25.75 as of September 30, 2024 and $23.47 as of December 31, 2023.The consolidated total risk-based capital ratio, common equity tier 1 risk-based capital ratio, and tier 1 leverage ratio at December 31, 2023 were 16.74%, 12.41%, and 11.33%, respectively. These ratios significantly exceeded the minimum regulatory levels necessary to be deemed “well-capitalized”. Full Year 2024 Highlights Full year net income of $49.7 million in 2024, compared to $62.7 million in 2023.Diluted earnings per share of $2.92 in 2024, compared to $3.62 in 2023.The Bank’s wholly-owned subsidiary, Windmark Insurance Agency, Inc. (“Windmark”), was sold in the second quarter of 2023 for $36.1 million, resulting in a gain, net of related charges and taxes, of $22.9 million or $1.32 of diluted earnings per share.Loans held for investment grew $40.9 million, or 1.4%, during 2024.Total assets were $4.23 billion at December 31, 2024, compared to $4.20 billion at December 31, 2023.Return on average assets of 1.17% for the full year 2024, compared to 1.54% for 2023. Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “I am very proud of our performance this past year as we successfully navigated a challenging environment with a focus on delivering strong financial results. We tightly managed our liquidity to optimize our profitability and return metrics while maintaining our conservative approach to underwriting and risk management. We have also managed the anticipated decline in our indirect auto portfolio as well as a heightened level of loan payoffs and paydowns that has obscured the strong, underlying loan production that has built through the year. Importantly, we are seeing a growing level of optimism across our customer base that is translating into the strongest new business production pipeline that we have seen in more than two years. This bodes positively for the year ahead where we expect to deliver low to mid-single digit loan growth for the full year 2025. Additionally, we are seeing deposit pricing fall across our markets which contributed to our strong margin expansion in the fourth quarter.” Results of Operations, Quarter Ended December 31, 2024 Net Interest Income Net interest income was $38.5 million for the fourth quarter of 2024, compared to $37.3 million for the third quarter of 2024 and $35.2 million for the fourth quarter of 2023. Net interest margin, calculated on a tax-equivalent basis, was 3.75% for the fourth quarter of 2024, compared to 3.65% for the third quarter of 2024 and 3.52% for the fourth quarter of 2023. The average yield on loans was 6.69% for the fourth quarter of 2024, compared to 6.68% for the third quarter of 2024 and 6.29% for the fourth quarter of 2023. The average cost of deposits was 229 basis points for the fourth quarter of 2024, which is 18 basis points lower than the third quarter of 2024 and 5 basis points higher than the fourth quarter of 2023. Interest income was $61.3 million for the fourth quarter of 2024, compared to $61.6 million for the third quarter of 2024 and $57.2 million for the fourth quarter of 2023. Interest income decreased $316 thousand in the fourth quarter of 2024 from the third quarter of 2024, which was primarily comprised of a decrease of $243 thousand in loan interest income. The decline in loan interest income was due primarily to a decrease in average loans of $20.2 million. Interest income increased $4.1 million in the fourth quarter of 2024 compared to the fourth quarter of 2023. This increase was primarily due to an increase of average loans of $30.5 million and higher loan interest rates during the period, resulting in growth of $3.4 million in loan interest income. Interest expense was $22.8 million for the fourth quarter of 2024, compared to $24.3 million for the third quarter of 2024 and $22.1 million for the fourth quarter of 2023. Interest expense decreased $1.6 million compared to the third quarter of 2024 and increased $702 thousand compared to the fourth quarter of 2023. The $1.6 million decrease was primarily as a result of a 24 basis point decline in the cost of interest-bearing deposits. The $702 thousand increase was primarily a result of growth in average interest-bearing deposits of $136.0 million. Noninterest Income and Noninterest Expense Noninterest income was $13.3 million for the fourth quarter of 2024, compared to $10.6 million for the third quarter of 2024 and $9.1 million for the fourth quarter of 2023. The increase from the third quarter of 2024 was primarily due to an increase of $3.1 million in mortgage banking revenues, mainly from an increase of $3.5 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value increased in the fourth quarter of 2024. This growth was partially offset by approximately $700 thousand in insurance proceeds received for property damage in the third quarter of 2024. The increase in noninterest income for the fourth quarter of 2024 as compared to the fourth quarter of 2023 was primarily due to an increase of $3.3 million in mortgage banking activities revenue mainly from a rise of $3.0 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value increased in the fourth quarter of 2024. Noninterest expense was $29.9 million for the fourth quarter of 2024, compared to $33.1 million for the third quarter of 2024 and $30.6 million for the fourth quarter of 2023. The $3.2 million decrease from the third quarter of 2024 was largely the result of a decline of $1.4 million in personnel expenses, primarily from decreased health insurance costs of $668 thousand, as annual rebates were received in the fourth quarter, and a reduction of $400 thousand in mortgage commissions as mortgage activity slowed in the fourth quarter. There were also decreases in net occupancy expense, professional service expenses, and the ineffectiveness related to fair value hedges on municipal securities. The decrease in noninterest expense for the fourth quarter of 2024 as compared to the fourth quarter of 2023 was largely the result of a decrease of $593 thousand in personnel expenses, related to the decline in health insurance costs previously noted. Loan Portfolio and Composition Loans held for investment were $3.06 billion as of December 31, 2024, compared to $3.04 billion as of September 30, 2024 and $3.01 billion as of December 31, 2023. The $17.7 million, or 2.3% annualized, increase during the fourth quarter of 2024 as compared to the third quarter of 2024 occurred primarily as a result of organic loan growth experienced in commercial owner-occupied real estate loans. As of December 31, 2024, loans held for investment increased $40.9 million, or 1.4%, from December 31, 2023, primarily attributable to organic loan growth, occurring mainly in multi-family property loans, direct-energy loans, commercial owner-occupied real estate loans, and single-family property loans, partially offset by decreases in consumer auto loans and construction, land, and development loans. Deposits and Borrowings Deposits totaled $3.62 billion as of December 31, 2024, compared to $3.72 billion as of September 30, 2024 and $3.63 billion as of December 31, 2023. Deposits decreased by $94.8 million, or 2.6%, in the fourth quarter of 2024 from September 30, 2024. As of December 31, 2024, deposits were essentially unchanged, from December 31, 2023. Noninterest-bearing deposits were $935.5 million as of December 31, 2024, compared to $998.5 million as of September 30, 2024 and $974.2 million as of December 31, 2023. Noninterest-bearing deposits represented 25.8% of total deposits as of December 31, 2024. The quarterly change in total deposits was mainly due to the seasonal decline in escrow accounts of approximately $35 million and a planned reduction of approximately $50 million in customer sweep deposits as part of balance sheet management. Deposits were essentially unchanged, year-over-year, with an increase in interest-bearing deposits offset by a decline in noninterest-bearing deposits. Asset Quality The Company recorded a provision for credit losses in the fourth quarter of 2024 of $1.2 million, compared to $495 thousand in the third quarter of 2024 and $600 thousand in the fourth quarter of 2023. The provision during the fourth quarter of 2024 was largely attributable to net charge-off activity and increased loan balances. The ratio of allowance for credit losses to loans held for investment was 1.42% as of December 31, 2024, compared to 1.41% as of September 30, 2024 and 1.41% as of December 31, 2023. The ratio of nonperforming assets to total assets was 0.58% as of December 31, 2024, compared to 0.59% as of September 30, 2024 and 0.14% as of December 31, 2023. Annualized net charge-offs were 0.11% for the fourth quarter of 2024, compared to 0.11% for the third quarter of 2024 and 0.08% for the fourth quarter of 2023. Capital Book value per share decreased to $26.67 at December 31, 2024, compared to $27.04 at September 30, 2024. The change was primarily driven by a decrease in accumulated other comprehensive income (“AOCI”) of $18.2 million, partially offset by $14.0 million of net income after dividends paid. The decrease in AOCI was attributed to the after-tax decrease in fair value of our available for sale securities, net of fair value hedges, as a result of increases in long-term market interest rates during the period. The tangible common equity to tangible assets ratio (non-GAAP) increased 15 basis points to 9.92% in the fourth quarter of 2024. Conference Call South Plains will host a conference call to discuss its fourth quarter and year-end 2024 financial results today, January 24, 2025, at 10:00 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 13750452. The replay will be available until February 7, 2025. 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; potential recession in the United States and our market areas; the impacts related to or resulting from uncertainty in the banking industry as a whole; increased competition for deposits in our market areas 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 further reductions in interest rates and a resulting decline in net interest income; the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; 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, acts of war or terrorism, geopolitical instability or other external events; the impact of changes in U.S. presidential administrations or Congress, including potential changes in U.S. and international trade policies 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 artificial intelligence and machine learnings; potential costs related to the impacts of climate change; current or future litigation, regulatory examinations or other legal and/or regulatory actions; and changes in applicable laws and regulations. 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. Contact:Mikella Newsom, Chief Risk Officer and Secretary (866) 771-3347 investors@city.bank Source: South Plains Financial, Inc. South Plains Financial, Inc.Consolidated Financial Highlights - (Unaudited)(Dollars in thousands, except share data) As of and for the quarter ended December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023Selected Income Statement Data: Interest income$61,324 $61,640 $59,208 $58,727 $57,236 Interest expense 22,776 24,346 23,320 23,359 22,074 Net interest income 38,548 37,294 35,888 35,368 35,162 Provision for credit losses 1,200 495 1,775 830 600 Noninterest income 13,319 10,635 12,709 11,409 9,146 Noninterest expense 29,948 33,128 32,572 31,930 30,597 Income tax expense 4,222 3,094 3,116 3,143 2,787 Net income 16,497 11,212 11,134 10,874 10,324 Per Share Data (Common Stock): Net earnings, basic$1.01 $0.68 $0.68 $0.66 $0.63 Net earnings, diluted 0.96 0.66 0.66 0.64 0.61 Cash dividends declared and paid 0.15 0.14 0.14 0.13 0.13 Book value 26.67 27.04 25.45 24.87 24.80 Tangible book value (non-GAAP) 25.40 25.75 24.15 23.56 23.47 Weighted average shares outstanding, basic 16,400,361 16,386,079 16,425,360 16,429,919 16,443,908 Weighted average shares outstanding, dilutive 17,161,646 17,056,959 16,932,077 16,938,857 17,008,892 Shares outstanding at end of period 16,455,826 16,386,627 16,424,021 16,431,755 16,417,099 Selected Period End Balance Sheet Data: Cash and cash equivalents$359,082 $471,167 $298,006 $371,939 $330,158 Investment securities 577,240 606,889 591,031 599,869 622,762 Total loans held for investment 3,055,054 3,037,375 3,094,273 3,011,799 3,014,153 Allowance for credit losses 43,237 42,886 43,173 42,174 42,356 Total assets 4,232,239 4,337,659 4,220,936 4,218,993 4,204,793 Interest-bearing deposits 2,685,366 2,720,880 2,672,948 2,664,397 2,651,952 Noninterest-bearing deposits 935,510 998,480 951,565 974,174 974,201 Total deposits 3,620,876 3,719,360 3,624,513 3,638,571 3,626,153 Borrowings 110,354 110,307 110,261 110,214 110,168 Total stockholders’ equity 438,949 443,122 417,985 408,712 407,114 Summary Performance Ratios: Return on average assets (annualized) 1.53% 1.05% 1.07% 1.04% 0.99%Return on average equity (annualized) 14.88% 10.36% 10.83% 10.72% 10.52%Net interest margin (1) 3.75% 3.65% 3.63% 3.56% 3.52%Yield on loans 6.69% 6.68% 6.60% 6.53% 6.29%Cost of interest-bearing deposits 3.12% 3.36% 3.33% 3.27% 3.14%Efficiency ratio 57.50% 68.80% 66.72% 67.94% 68.71%Summary Credit Quality Data: Nonperforming loans$24,023 $24,693 $23,452 $3,380 $5,178 Nonperforming loans to total loans held for investment 0.79% 0.81% 0.76% 0.11% 0.17%Other real estate owned 530 973 755 862 912 Nonperforming assets to total assets 0.58% 0.59% 0.57% 0.10% 0.14%Allowance for credit losses to total loans held for investment 1.42% 1.41% 1.40% 1.40% 1.41%Net charge-offs to average loans outstanding (annualized) 0.11% 0.11% 0.10% 0.13% 0.08% As of and for the quarter ended December 31 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023Capital Ratios: Total stockholders’ equity to total assets 10.37% 10.22% 9.90% 9.69% 9.68%Tangible common equity to tangible assets (non-GAAP) 9.92% 9.77% 9.44% 9.22% 9.21%Common equity tier 1 to risk-weighted assets 13.53% 13.25% 12.61% 12.67% 12.41%Tier 1 capital to average assets 12.04% 11.76% 11.81% 11.51% 11.33%Total capital to risk-weighted assets 17.86% 17.61% 16.86% 17.00% 16.74% (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) For the Three Months Ended December 31, 2024 December 31, 2023 Average Balance Interest Yield/Rate AverageBalance Interest Yield/RateAssets Loans$3,049,718 $51,270 6.69% $3,019,228 $47,903 6.29%Debt securities - taxable 518,646 4,994 3.83% 560,143 5,563 3.94%Debt securities - nontaxable 154,203 1,014 2.62% 157,341 1,032 2.60%Other interest-bearing assets 390,090 4,267 4.35% 255,454 2,963 4.60% Total interest-earning assets 4,112,657 61,545 5.95% 3,992,166 57,461 5.71%Noninterest-earning assets 189,422 156,541 Total assets$4,302,079 $4,148,707 Liabilities & stockholders’ equity NOW, Savings, MMDA’s$2,249,062 16,570 2.93% $2,201,190 16,894 3.04%Time deposits 445,173 4,566 4.08% 357,067 3,325 3.69%Short-term borrowings 3 - 0.00% 3 - 0.00%Notes payable & other long-term borrowings - - 0.00% - - 0.00%Subordinated debt 63,938 834 5.19% 73,740 981 5.28%Junior subordinated deferrable interest debentures 46,393 806 6.91% 46,393 874 7.47% Total interest-bearing liabilities 2,804,569 22,776 3.23% 2,678,393 22,074 3.27%Demand deposits 978,742 1,021,091 Other liabilities 77,732 59,808 Stockholders’ equity 441,036 389,415 Total liabilities & stockholders’ equity$4,302,079 $4,148,707 Net interest income $38,769 $35,387 Net interest margin (2) 3.75% 3.52% (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) For the Twelve Months Ended December 31, 2024 December 31, 2023 Average Balance Interest Yield/Rate Average Balance Interest Yield/RateAssets Loans$3,054,189 $202,301 6.62% $2,924,473 $176,627 6.04%Debt securities - taxable 532,730 21,090 3.96% 570,655 21,590 3.78%Debt securities - nontaxable 155,168 4,076 2.63% 185,205 4,901 2.65%Other interest-bearing assets 312,917 14,319 4.58% 223,152 9,973 4.47% Total interest-earning assets 4,055,004 241,786 5.96% 3,903,485 213,091 5.46%Noninterest-earning assets 179,527 176,495 Total assets$4,234,531 $4,079,980 Liabilities & stockholders’ equity NOW, Savings, MMDA’s$2,250,942 70,362 3.13% $2,117,985 55,423 2.62%Time deposits 411,028 16,719 4.07% 321,205 9,564 2.98%Short-term borrowings 3 - 0.00% 84 5 5.95%Notes payable & other long-term borrowings - - 0.00% - - 0.00%Subordinated debt 63,868 3,339 5.23% 75,458 4,018 5.32%Junior subordinated deferrable interest debentures 46,393 3,381 7.29% 46,393 3,276 7.06% Total interest-bearing liabilities 2,772,234 93,801 3.38% 2,561,125 72,286 2.82%Demand deposits 968,307 1,069,280 Other liabilities 70,777 71,102 Stockholders’ equity 423,213 378,473 Total liabilities & stockholders’ equity$4,234,531 $4,079,980 Net interest income $147,985 $140,805 Net interest margin (2) 3.65% 3.61% (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) As of December 31, 2024 December 31, 2023 Assets Cash and due from banks$54,114 $62,821 Interest-bearing deposits in banks 304,968 267,337 Securities available for sale 577,240 622,762 Loans held for sale 20,542 14,499 Loans held for investment 3,055,054 3,014,153 Less: Allowance for credit losses (43,237) (42,356)Net loans held for investment 3,011,817 2,971,797 Premises and equipment, net 52,951 55,070 Goodwill 19,315 19,315 Intangible assets 1,720 2,429 Mortgage servicing rights 26,292 26,569 Other assets 163,280 162,194 Total assets$4,232,239 $4,204,793 Liabilities and Stockholders’ Equity Noninterest-bearing deposits$935,510 $974,201 Interest-bearing deposits 2,685,366 2,651,952 Total deposits 3,620,876 3,626,153 Subordinated debt 63,961 63,775 Junior subordinated deferrable interest debentures 46,393 46,393 Other liabilities 62,060 61,358 Total liabilities 3,793,290 3,797,679 Stockholders’ Equity Common stock 16,456 16,417 Additional paid-in capital 97,287 97,107 Retained earnings 385,827 345,264 Accumulated other comprehensive income (loss) (60,621) (51,674)Total stockholders’ equity 438,949 407,114 Total liabilities and stockholders’ equity$4,232,239 $4,204,793 South Plains Financial, Inc.Consolidated Statements of Income(Unaudited)(Dollars in thousands) Three Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Interest income: Loans, including fees$51,262 $47,895 $202,270 $176,598 Other 10,062 9,341 38,629 35,435 Total interest income 61,324 57,236 240,899 212,033 Interest expense: Deposits 21,136 20,219 87,081 64,987 Subordinated debt 834 981 3,339 4,018 Junior subordinated deferrable interest debentures 806 874 3,381 3,276 Other - - - 5 Total interest expense 22,776 22,074 93,801 72,286 Net interest income 38,548 35,162 147,098 139,747 Provision for credit losses 1,200 600 4,300 4,610 Net interest income after provision for credit losses 37,348 34,562 142,798 135,137 Noninterest income: Service charges on deposits 2,241 1,844 8,026 7,130 Income from insurance activities 31 37 123 1,515 Mortgage banking activities 4,955 1,671 14,187 13,817 Bank card services and interchange fees 3,225 3,167 13,640 13,323 Gain on sale of subsidiary — — — 33,778 Other 2,867 2,427 12,096 9,663 Total noninterest income 13,319 9,146 48,072 79,226 Noninterest expense: Salaries and employee benefits 17,384 17,977 74,338 79,377 Net occupancy expense 3,901 3,856 16,105 16,102 Professional services 1,555 1,509 6,583 6,433 Marketing and development 1,153 880 3,782 3,453 Other 5,955 6,375 26,770 29,581 Total noninterest expense 29,948 30,597 127,578 134,946 Income before income taxes 20,719 13,111 63,292 79,417 Income tax expense 4,222 2,787 13,575 16,672 Net income$16,497 $10,324 $49,717 $62,745 South Plains Financial, Inc.Loan Composition(Unaudited)(Dollars in thousands) As of December 31, 2024 December 31, 2023 Loans: Commercial Real Estate$1,119,063 $1,081,056 Commercial - Specialized 388,955 372,376 Commercial - General 557,371 517,361 Consumer: 1-4 Family Residential 566,400 534,731 Auto Loans 254,474 305,271 Other Consumer 64,936 74,168 Construction 103,855 129,190 Total loans held for investment$3,055,054 $3,014,153 South Plains Financial, Inc.Deposit Composition(Unaudited)(Dollars in thousands) As of December 31, 2024 December 31, 2023 Deposits: Noninterest-bearing deposits$935,510 $974,201 NOW & other transaction accounts 498,718 562,066 MMDA & other savings 1,741,988 1,722,170 Time deposits 444,660 367,716 Total deposits$3,620,876 $3,626,153 South Plains Financial, Inc.Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in thousands) For the quarter ended December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023Pre-tax, pre-provision income Net income$16,497 $11,212 $11,134 $10,874 $10,324 Income tax expense 4,222 3,094 3,116 3,143 2,787 Provision for credit losses 1,200 495 1,775 830 600 Pre-tax, pre-provision income$21,919 $14,801 $16,025 $14,847 $13,711 As of December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023Tangible common equity Total common stockholders’ equity$438,949 $443,122 $417,985 $408,712 $407,114 Less: goodwill and other intangibles (21,035) (21,197) (21,379) (21,562) (21,744) Tangible common equity$417,914 $421,925 $396,606 $387,150 $385,370 Tangible assets Total assets$4,232,239 $4,337,659 $4,220,936 $4,218,993 $4,204,793 Less: goodwill and other intangibles (21,035) (21,197) (21,379) (21,562) (21,744) Tangible assets$4,211,204 $4,316,462 $4,199,557 $4,197,431 $4,183,049 Shares outstanding 16,455,826 16,386,627 16,424,021 16,431,755 16,417,099 Total stockholders’ equity to total assets 10.37% 10.22% 9.90% 9.69% 9.68%Tangible common equity to tangible assets 9.92% 9.77% 9.44% 9.22% 9.21%Book value per share$26.67 $27.04 $25.45 $24.87 $24.80 Tangible book value per share$25.40 $25.75 $24.15 $23.56 $23.47

South Plains Financial, Inc. Reports Fourth Quarter and Year-End 2024 Financial Results

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