UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No ...

South Plains Financial Inc. (NASDAQ:SPFI) Q4 2022 Earnings Conference Call January 26, 2023 5:00 PM ET Company Participants Steve Crockett – Chief Financial Officer and Treasurer Curtis Griffith – Chairman and Chief Executive Officer Cory Newsom – President Conference Call Participants Brad Milsaps – Piper Sandler Brady Gailey – KBW Operator Good afternoon, ladies and gentlemen, and welcome to the South Plains Financial Inc. Fourth Quarter 2022 Earnings Conference Call. During today's presentation, all part ...

South Plains Financial FORWARD-LOOKING STATEMENTS 2 Cory T. Newsom President | --- | |-----------------------------------------------------------| | | | Steven B. Crockett Chief Financial Officer & Treasurer | Fourth Quarter and Full Year 2022 Highlights | --- | --- | --- | --- | |----------------------------|-----------------------|-------------------------|-----------| | | | | | | Organic Loan Growth 12.7% | Net Income $58.2 M | ROAA 1.47% | NIM (1) | | Total Assets $3.94 B | EPS - Diluted $3.23 | Efficie ...

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 September 30, 2022 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 (Sta ...

South Plains Financial, Inc. (NASDAQ:SPFI) Q3 2022 Earnings Conference Call October 21, 2022 11:00 AM ET Company Participants Steven Crockett - Chief Financial Officer and Treasurer Curtis Griffith - Chairman and Chief Executive Officer Cory Newsom - Director and President Conference Call Participants Brady Gailey - KBW Bradley Milsaps - Piper Sandler Presentation Operator Good morning, ladies and gentlemen. Welcome to the South Plains Financial Incorporated Third Quarter 2022 Earnings Conference Call. Duri ...

South Plains Financial Third Quarter 2022 Earnings Presentation October 21, 2022 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" or the "Company" or "SPFI") 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 forwar ...

PART I [Item 1. Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) Unaudited consolidated financial statements for South Plains Financial, Inc. as of June 30, 2022, show increased assets and net income, but decreased stockholders' equity due to unrealized security losses [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $3.97 billion driven by loan growth, while stockholders' equity significantly decreased to $364.2 million due to accumulated other comprehensive loss Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 (Unaudited) | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$3,974,724** | **$3,901,855** | | Cash and cash equivalents | $375,690 | $486,821 | | Loans held for investment, net | $2,540,708 | $2,395,479 | | Securities available for sale | $763,943 | $724,504 | | **Total Liabilities** | **$3,610,502** | **$3,494,428** | | Total deposits | $3,425,837 | $3,341,222 | | **Total Stockholders' Equity** | **$364,222** | **$407,427** | | Accumulated other comprehensive income (loss) | $(46,832) | $13,702 | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Net income for Q2 2022 increased to $15.9 million due to higher net interest income, but a significant unrealized loss on securities led to a comprehensive loss of $14.6 million Key Income Statement Data (in thousands, except per share data) | Metric | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $37,105 | $29,593 | $67,052 | $59,137 | | Provision for loan losses | $0 | $(2,007) | $(2,085) | $(1,918) | | Noninterest Income | $18,835 | $22,250 | $42,532 | $48,750 | | Noninterest Expense | $36,056 | $36,778 | $73,980 | $73,835 | | **Net Income** | **$15,883** | **$13,650** | **$30,161** | **$28,810** | | **Diluted EPS** | **$0.88** | **$0.74** | **$1.66** | **$1.55** | | Comprehensive income (loss) | $(14,648) | $19,867 | $(30,373) | $25,896 | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity decreased to $364.2 million, primarily due to a $60.5 million other comprehensive loss and $9.2 million in common stock repurchases - For the six months ended June 30, 2022, key changes to stockholders' equity included **$30.2 million** in net income, offset by a **$60.5 million** other comprehensive loss, **$3.9 million** in cash dividends, and **$9.2 million** in common stock repurchases[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $89.4 million, while investing activities used $271.9 million, resulting in a $111.1 million decrease in cash and cash equivalents Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Category | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $89,447 | $69,206 | | Net cash used in investing activities | $(271,901) | $(68,097) | | Net cash provided by financing activities | $71,323 | $82,533 | | **Net change in cash and cash equivalents** | **$(111,131)** | **$83,642** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, including lease standard adoption, portfolio breakdowns, credit quality, borrowing arrangements, capital adequacy, and segment performance - The company adopted ASU No. 2016-02 — Leases (Topic 842) effective January 1, 2022, recording a **$9.4 million** right-of-use asset and a **$10.3 million** lease liability[50](index=50&type=chunk) - The company expects to adopt the Current Expected Credit Loss (CECL) model effective January 1, 2023, and has contracted with a third-party vendor for implementation[63](index=63&type=chunk) - As of June 30, 2022, the company had no remaining loans under active COVID-19 related modification programs[87](index=87&type=chunk)[88](index=88&type=chunk) - On July 21, 2022, the company declared a cash dividend of **$0.12 per share**, payable on August 15, 2022[138](index=138&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2022 performance, highlighting increased net income from loan growth and rising rates, offset by lower noninterest income, while noting solid financial condition and improved asset quality despite unrealized security losses [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q2 2022 net income increased to $15.9 million, driven by higher net interest income from loan growth and rising rates, despite a decline in noninterest income from mortgage banking Quarterly Performance Summary (in millions, except per share data) | Metric | Q2 2022 | Q2 2021 | | :--- | :--- | :--- | | Net Income | $15.9 | $13.7 | | Diluted EPS | $0.88 | $0.74 | | Return on Average Assets | 1.60% | 1.46% | | Return on Average Equity | 16.96% | 14.27% | - Net interest margin for Q2 2022 expanded to **4.02%** from **3.42%** in Q2 2021, driven by higher loan yields and interest income from four specific credits totaling **$4.4 million**[162](index=162&type=chunk)[164](index=164&type=chunk) - Mortgage banking activities income decreased by **$5.0 million** (**36.8%**) year-over-year in Q2 2022 due to slowing refinance activity as mortgage rates rose[172](index=172&type=chunk) - Salaries and employee benefits expense decreased by **$1.4 million** (**5.9%**) in Q2 2022, primarily due to lower mortgage commissions[177](index=177&type=chunk) [Financial Condition](index=36&type=section&id=Financial%20Condition) Total assets grew to $3.97 billion, driven by a 5.9% increase in loans and 2.5% increase in deposits, while asset quality improved despite unrealized losses in the securities portfolio - Loans held for investment grew by **$142.9 million** (**5.9%**) since December 31, 2021, driven by organic growth of **$176.0 million**, partially offset by a **$33.1 million** decrease in PPP loans[181](index=181&type=chunk) - The allowance for loan losses decreased to **$39.8 million** (**1.54%** of loans) from **$42.1 million** (**1.73%** of loans) at year-end 2021, reflecting improved credit metrics[203](index=203&type=chunk)[205](index=205&type=chunk) - Nonaccrual loans decreased to **$7.2 million** at June 30, 2022, from **$9.5 million** at December 31, 2021[210](index=210&type=chunk) - Total deposits increased by **$84.6 million** (**2.5%**) to **$3.43 billion**, with noninterest-bearing deposits growing to **35.0%** of total deposits from **32.1%** at year-end 2021[226](index=226&type=chunk)[227](index=227&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity and capital, despite a decrease in stockholders' equity to $364.2 million due to comprehensive loss and stock repurchases, with all regulatory capital ratios remaining well above thresholds Regulatory Capital Ratios | Ratio (Consolidated) | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Total capital to risk-weighted assets | 17.32% | 18.40% | | Tier 1 capital to risk-weighted assets | 13.67% | 14.49% | | CET1 capital to risk-weighted assets | 12.24% | 12.91% | | Tier 1 capital to average assets | 10.93% | 10.77% | - The company repurchased **256,988 shares** of common stock for **$6.2 million** during the second quarter of 2022[253](index=253&type=chunk) [Non-GAAP Financial Measures](index=48&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures show tangible book value per share decreased to $19.50 and tangible common equity to tangible assets ratio decreased to 8.60% due to comprehensive income changes Reconciliation of GAAP to Non-GAAP Measures | Metric | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Book value per share (GAAP) | $20.91 | $22.94 | | **Tangible book value per share (Non-GAAP)** | **$19.50** | **$21.51** | | Total stockholders' equity to total assets (GAAP) | 9.16% | 10.44% | | **Tangible common equity to tangible assets (Non-GAAP)** | **8.60%** | **9.85%** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate volatility, with simulations indicating a 100 basis point rate increase would raise net interest income by 1.12% over 12 months Net Interest Income Sensitivity Analysis (12-Month Horizon) | Change in Interest Rates (Basis Points) | % Change in Net Interest Income (June 30, 2022) | | :--- | :--- | | +300 | 2.79% | | +200 | 2.02% | | +100 | 1.12% | | -100 | (3.42)% | [Item 4. Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[287](index=287&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[288](index=288&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any litigation expected to have a material adverse effect on its financial position, beyond previously disclosed matters - The company states that, except for previously disclosed matters, it is not involved in any litigation expected to have a material adverse effect on its financial position[290](index=290&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred in the risk factors previously disclosed in the company's 2021 Annual Report on Form 10-K - No material changes have occurred in the risk factors disclosed in the 2021 Annual Report on Form 10-K[291](index=291&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2022, the company repurchased 256,988 shares for $6.2 million, with a new $15.0 million repurchase program approved in May 2022 Share Repurchase Activity - Q2 2022 | Month | Total Shares Repurchased | Average Price Paid Per Share | Total Dollar Amount Purchased | | :--- | :--- | :--- | :--- | | April 2022 | 45,492 | $25.80 | $1,173,704 | | May 2022 | 160,610 | $23.66 | $3,799,860 | | June 2022 | 50,886 | $23.79 | $1,210,831 | | **Total** | **256,988** | **-** | **$6,184,395** | - A new stock repurchase program for up to **$15.0 million** was approved on May 18, 2022, with an expiration date of May 21, 2023[292](index=292&type=chunk) [Other Items (Items 3, 4, 5 & 6)](index=52&type=section&id=Other%20Items) Items 3, 4, and 5 were reported as not applicable or with no information to disclose, concluding with a list of filed exhibits - Items 3 (Defaults upon Senior Securities), 4 (Mine Safety Disclosures), and 5 (Other Information) were reported as not applicable or with no information to disclose[295](index=295&type=chunk)[296](index=296&type=chunk)[297](index=297&type=chunk)

South Plains Financial Second Quarter 2022 Earnings Presentation July 22, 2022 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" or the "Company" or "SPFI") 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- ...

South Plains Financial, Inc. (NASDAQ:SPFI) Q2 2022 Earnings Conference Call July 22, 2022 11:00 AM ET Company Participants Steven Crockett - Chief Financial Officer and Treasurer Curtis Griffith - Chairman and Chief Executive Officer Cory Newsom - Director and President Conference Call Participants Brady Gailey - KBW Bradley Milsaps - Piper Sandler Operator Good morning, ladies and gentlemen, and welcome to the South Plains Financial, Inc. Second Quarter 2022 Earnings Conference Call. [Operator Instructions ...

Financial Performance - Net income for the three months ended March 31, 2022, was $14.3 million, or $0.78 per diluted common share, compared to $15.2 million, or $0.82 per diluted common share for the same period in 2021[145]. - Return on average equity decreased to 14.58% for Q1 2022 from 16.51% in Q1 2021, while return on average assets decreased to 1.47% from 1.66%[145]. - A decrease of $2.8 million in noninterest income was a primary factor for the $0.9 million decrease in net income compared to the previous year[145]. - Net interest income for Q1 2022 was $30.3 million, an increase of $0.4 million, or 1.4%, compared to $29.9 million in Q1 2021[153]. - Noninterest income for Q1 2022 was $23.7 million, a decrease of $2.8 million, or 10.6%, compared to $26.5 million in Q1 2021[160]. - Income from mortgage banking activities decreased by $5.2 million, or 27.5%, to $13.6 million in Q1 2022, primarily due to a 46.1% decrease in mortgage loan originations[160]. Loan Portfolio and Modifications - Total active loan modifications attributed to COVID-19 were approximately $6.0 million as of March 31, 2022, primarily in the hotel portfolio[141]. - The Bank assisted approximately 2,100 customers with a total of $218 million in the first round of the Paycheck Protection Program (PPP)[143]. - Approximately $217 million in PPP loans have been forgiven by the SBA, leaving approximately $1 million outstanding as of March 31, 2022[143]. - The Bank funded approximately 1,100 PPP loans for a total of $91 million in the second round of PPP, with about $64 million forgiven as of March 31, 2022[143]. - The Company continues to monitor its loan portfolio closely, particularly in the retail, hospitality, and energy sectors, due to the ongoing COVID-19 pandemic[140]. - The allowance for loan losses as a percentage of loans held for investment was 1.62% at March 31, 2022, down from 1.73% at December 31, 2021[157]. - The allowance for loan losses decreased to $39.6 million at March 31, 2022, down from $42.1 million at December 31, 2021, a reduction of $2.4 million, or 5.8%[189]. - Total average loans outstanding during the period increased to $2.48 billion as of March 31, 2022, compared to $2.42 billion as of March 31, 2021[191]. - Total nonaccrual loans were $9.5 million, representing 0.39% of total loans held for investment as of March 31, 2022, unchanged from December 31, 2021[198]. - Nonperforming loans increased to $12.1 million at March 31, 2022, compared to $10.6 million at December 31, 2021[199]. Asset and Deposit Growth - Total assets as of March 31, 2022, were $3.95 billion, compared to $3.71 billion as of March 31, 2021[154]. - Total assets increased by $97.9 million, or 2.5%, to $4.00 billion as of March 31, 2022, compared to $3.90 billion at December 31, 2021[163]. - Total deposits increased by $108.9 million, or 3.3%, to $3.45 billion as of March 31, 2022, compared to $3.34 billion at December 31, 2021[163]. - Noninterest-bearing demand accounts comprised 32.8% of total deposits as of March 31, 2022[214]. - Noninterest-bearing deposits rose to $1.13 billion, accounting for 32.8% of total deposits, compared to $1.07 billion or 32.1% previously[215]. - Total interest-bearing deposits amounted to $2.28 billion with a weighted average rate of 0.34%, down from 0.38% at the end of 2021[216]. Risk Management and Capital - The Company maintains a rigorous enterprise risk management system to enhance risk management effectiveness across the Bank[140]. - The Company has opted not to participate in the Community Bank Leverage Ratio framework and continues to follow Basel III capital requirements[243]. - As of March 31, 2022, South Plains Financial, Inc. reported total capital to risk-weighted assets at $535,998, representing a ratio of 18.22%, slightly down from 18.40% as of December 31, 2021[241]. - Tier 1 capital to risk-weighted assets for South Plains Financial, Inc. was $423,358, with a ratio of 14.39%, compared to 14.49% at the end of 2021[241]. - The estimated amount of uninsured deposits as of March 31, 2022, was $1.08 billion[217]. Equity and Shareholder Activity - Total stockholders' equity decreased to $387.1 million, a decline of 5.0% from $407.4 million at the end of 2021, primarily due to a $30.0 million decrease in accumulated other comprehensive income[237]. - The Company repurchased 106,498 shares of common stock for a total of $3.0 million during the three months ended March 31, 2022, compared to 43,184 shares for $786 thousand in the same period of 2021[244]. - Tangible common equity to tangible assets ratio was 9.11% as of March 31, 2022, compared to 9.85% at the end of 2021[261]. - Tangible book value per share decreased to $20.49 as of March 31, 2022, from $21.51 at December 31, 2021[261]. Interest Rate Sensitivity - The average estimated net interest income at risk for a 100 basis point shift in interest rates should not decline by more than 7.5% over the subsequent one-year period[250]. - The simulated change in net interest income for a +300 basis point increase in interest rates was 5.20% as of March 31, 2022, down from 6.89% at December 31, 2021[252]. Loan Composition and Concentration - The company has a collateral concentration, with 67.8% of loans secured by real property as of March 31, 2022, down from 69.4% at December 31, 2021[169]. - Direct energy sector loans totaled $121.6 million, representing 5.0% of total loans, with an allowance for loan losses of 1.26%[203]. - Restaurant and retail owner-occupied loans amounted to $141.6 million, or 5.8% of total loans, with an allowance for loan losses of 2.65%[204]. - Hospitality and assisted living center loans totaled $116.0 million, or 4.7% of total loans, with an allowance for loan losses of 6.94%[204].