UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 001-38895 South Plains Financial, Inc. (Exact name of registrant as specified in its charter) Texas 75-2453320 (State or ...

Shares of South Plains Financial (NASDAQ: SPFI ) have been a strong performer over the past year, adding 32%. These gains intensified last week with the stock adding 10% after reporting better than expected Q2 earnings. Alongside this, management made clear the company is considering M&AOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock o ...

South Plains Financial (SPFI) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.77 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +11.69%. A quarter ago, it was expected that this company would post earnings of $0.65 per share when it actually produced earnings of $0.72, delivering a surprise of +10.77%.Over the last four quarters, the ...

Financial Data and Key Metrics Changes - For the second quarter, diluted earnings per share increased to $0.86 from $0.72 in the linked quarter [20] - Net interest income rose to $42.5 million compared to $38.5 million in the linked quarter [20] - The net interest margin (NIM) improved to 4.07% from 3.81% in the linked quarter, positively impacted by a one-time interest recovery [21] Business Line Data and Key Metrics Changes - Loans held for investment increased by $23.1 million, or 3% annualized, to $3.1 billion in the second quarter [12] - The yield on loans increased to 6.99% from 6.67% in the linked quarter, boosted by a one-time interest recovery [12] - Non-interest income grew to $12.2 million from $10.6 million in the linked quarter, primarily due to increased mortgage banking revenues [18] Market Data and Key Metrics Changes - Loans in major metropolitan markets decreased by $26 million to $1.01 billion, with heightened loan payoffs exceeding new loan production [16] - The indirect auto loan portfolio modestly decreased to $241 million from $243 million in the linked quarter, reflecting changes in consumer spending behavior [17] Company Strategy and Development Direction - The company is pursuing a strategy focused on both organic growth and mergers and acquisitions (M&A) to increase bank assets [7][9] - The organic growth strategy emphasizes expanding lending capabilities and enhancing core deposit growth [8] - The company remains interested in accretive acquisitions but has not yet found suitable opportunities that meet its criteria [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic growth in Texas and the potential for loan growth to reaccelerate [16] - The company is cautiously optimistic about maintaining resilient economic growth across Texas markets in the second half of 2025 [18] - Management highlighted the importance of proactive management of the loan portfolio to address challenges and maintain credit quality [5] Other Important Information - The consolidated common equity Tier one risk-based capital ratio was 13.86% as of June 30, 2025, indicating a strong capital position [10] - The company recorded a provision for credit losses of $2.5 million in the second quarter, largely due to increased specific reserves and net charge-off activity [23] Q&A Session Summary Question: Loan pipeline and growth outlook - Management indicated that loan growth is expected to be flat to low single digits for the third quarter due to higher loan payoffs, but they feel good about the pipeline and originations [27][28] Question: Balance between hiring and M&A - Management confirmed that they intend to continue hiring new lenders even if they find suitable M&A opportunities, emphasizing the importance of relationship banking [30][31] Question: Increase in specific reserves - The increase in specific reserves was attributed to several loans entering non-accrual status and a conservative approach to credit quality management [32][33] Question: Margin outlook and deposit costs - Management discussed the potential for NIM expansion and the impact of deposit pricing on overall margins, indicating a focus on managing costs effectively [38][39] Question: M&A environment and valuation expectations - Management noted that buyer expectations are a significant impediment to M&A activity, but they are actively looking for opportunities that align with their culture and financial criteria [44][45] Question: Mortgage banking performance - Management indicated that mortgage banking performance has been flat but remains profitable, with a focus on maintaining relationships during challenging times [50][51] Question: Non-interest bearing deposits growth - The growth in non-interest bearing deposits was attributed to improved treasury management solutions and a focus on relationship building with existing customers [63][64]

Financial Data and Key Metrics Changes - For the second quarter, diluted earnings per share increased to $0.86 from $0.72 in the linked quarter [21] - Net interest income rose to $42.5 million compared to $38.5 million in the linked quarter [21] - The net interest margin (NIM) improved to 4.07% from 3.81% in the linked quarter, positively impacted by a one-time interest recovery [22][24] Business Line Data and Key Metrics Changes - Loans held for investment increased by $23.1 million, or 3% annualized, to $3.1 billion in the second quarter [14] - The yield on loans rose to 6.99% from 6.67% in the linked quarter, boosted by a one-time interest recovery [14] - Non-interest income increased to $12.2 million from $10.6 million in the linked quarter, primarily due to higher mortgage banking revenues [19] Market Data and Key Metrics Changes - Loans in major metropolitan markets decreased by $26 million to $1.01 billion, driven by higher loan payoffs exceeding new loan production [17] - The indirect auto loan portfolio modestly decreased to $241 million from $243 million in the linked quarter, reflecting changes in consumer spending behavior [18] Company Strategy and Development Direction - The company is pursuing a strategy focused on both organic growth and mergers and acquisitions (M&A) to increase bank assets [8][10] - The organic growth strategy emphasizes expanding lending capabilities and enhancing deposit growth [9] - The company remains interested in accretive acquisitions but is cautious and selective, ensuring any deal aligns with its culture and financial goals [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic growth in Texas and the potential for loan growth to reaccelerate [17] - The company is closely monitoring the impact of expected tariffs on the local economy and consumer behavior [19] - Management believes the bank is well-capitalized and positioned to weather potential economic headwinds [12][13] Other Important Information - The allowance for credit losses to total loans held for investment ratio was 1.45%, reflecting a slight increase from the prior quarter [24] - The tangible common equity to tangible assets ratio was 9.98%, indicating a strong capital position [20] Q&A Session Summary Question: Loan pipeline and growth expectations - Management indicated that loan growth is expected to be flat to low single digits in the third quarter due to higher loan payoffs [28][29] Question: Balance between hiring and M&A - Management confirmed that hiring efforts will continue regardless of M&A opportunities, emphasizing the importance of building relationships [31] Question: Increase in specific reserves - The increase in specific reserves was attributed to several loans entering non-accrual status, not just one large credit [33][34] Question: Margin outlook and deposit costs - Management noted that while deposit costs are declining, the outlook for net interest margin remains stable [40][41] Question: M&A environment and valuation expectations - Management highlighted that buyer expectations are a significant impediment to M&A activity, but the regulatory environment has improved [46][47] Question: Mortgage banking performance - Management expects mortgage banking performance to remain flat but is confident in maintaining profitability [50] Question: Non-interest bearing deposits growth - The growth in non-interest bearing deposits was attributed to improved treasury management solutions and relationship management [65][66] Question: Hiring strategy and expense growth - Management acknowledged that hiring will impact expenses in the short term but views it as essential for long-term growth [68]

South Plains Financial Second Quarter 2025 Earnings Presentation July 16, 2025 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 that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-l ...

Exhibit 99.1 South Plains Financial, Inc. Reports Second Quarter 2025 Financial Results LUBBOCK, Texas, July 16, 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 ended June 30, 2025. Second Quarter 2025 Highlights Curtis Griffith, South Plains' Chairman and Chief Executive Officer, commented, "We delivered solid second quarter results highligh ...

Core Viewpoint - South Plains Financial, Inc. reported solid financial results for the second quarter of 2025, characterized by margin expansion, loan growth, and healthy capital levels, positioning the company to capitalize on future opportunities [3][4][6]. Financial Performance - Net interest income for Q2 2025 was $42.5 million, up from $38.5 million in Q1 2025 and $35.9 million in Q2 2024 [4][27]. - Net interest margin increased to 4.07% in Q2 2025, compared to 3.81% in Q1 2025 and 3.63% in Q2 2024 [4][28]. - Interest income rose to $64.1 million in Q2 2025, a $4.2 million increase from Q1 2025, driven by a $3.3 million rise in loan interest income [5][27]. - Net income for Q2 2025 was $14.6 million, compared to $12.3 million in Q1 2025 and $11.1 million in Q2 2024 [6][27]. Loan Portfolio and Deposits - Loans held for investment increased to $3.10 billion as of June 30, 2025, reflecting a 3.0% annualized growth from Q1 2025 [11][27]. - Total deposits were $3.74 billion as of June 30, 2025, a decrease of 1.4% from Q1 2025 but an increase of 3.2% year-over-year [12][27]. Asset Quality - The provision for credit losses in Q2 2025 was $2.5 million, up from $420 thousand in Q1 2025, indicating increased reserves due to credit quality downgrades [13][27]. - The ratio of nonperforming assets to total assets was 0.25% as of June 30, 2025, compared to 0.16% in Q1 2025 [15][27]. Capital Position - Book value per share increased to $27.98 as of June 30, 2025, from $27.33 in Q1 2025 [16][27]. - The total risk-based capital ratio was 18.17% as of June 30, 2025, indicating a strong capital position [6][28].

Core Viewpoint - South Plains Financial (SPFI) is expected to report quarterly earnings of $0.77 per share, a 16.7% increase year-over-year, with revenues projected at $51.7 million, reflecting a 6.4% growth compared to the previous year [1]. Earnings Projections - The consensus EPS estimate has been revised 2.4% lower in the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Key Financial Metrics - The consensus estimate for the 'Efficiency ratio' is 64.7%, down from 66.7% a year ago [5]. - 'Nonperforming Loans' are expected to reach $7.70 million, a significant decrease from $23.45 million reported in the same quarter last year [5]. - 'Net Interest Margin (FTE)' is forecasted at 3.8%, up from 3.6% in the same quarter of the previous year [5]. - 'Average Balance - Total interest-earning assets' is estimated at $4.15 billion, compared to $4.00 billion reported last year [6]. - 'Net Interest Income' is projected at $39.59 million, an increase from $35.89 million reported in the same quarter last year [6][7]. - 'Total Noninterest Income' is expected to be $12.11 million, slightly down from $12.71 million a year ago [7]. Stock Performance - Over the past month, shares of South Plains Financial have returned +2.7%, while the Zacks S&P 500 composite has changed by +4.1% [7]. - Currently, SPFI holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the overall market in the near future [7].

Core Viewpoint - South Plains Financial, Inc. will release its second quarter 2025 financial results on July 16, 2025, after market close, followed by a conference call to discuss the results [1]. Group 1: Financial Results Announcement - The financial results for the second quarter of 2025 will be announced after market close on July 16, 2025 [1]. - A conference call and webcast will be held at 5:00 p.m. ET on the same day to discuss the financial results [1]. Group 2: Participation Details - Investors and analysts can participate in the call by dialing 1-877-407-9716 or 1-201-493-6779 for international callers, approximately 10 minutes before the call starts [2]. - A live audio webcast will be available on the Company's website [2]. Group 3: Replay Information - A replay of the conference call will be accessible within two hours after the call concludes, available through the Company's website and by dialing 1-844-512-2921 or 1-412-317-6671 for international callers [3]. - The replay will be available until July 30, 2025, with a pin code of 13754259 for telephone access [3]. Group 4: Company Overview - South Plains Financial, Inc. is the parent company of City Bank, headquartered in Lubbock, Texas, and is one of the largest independent banks in West Texas [4]. - The Company operates in various Texas markets and provides a range of commercial and consumer financial services [4].