Here are a few analogies for South Plains Financial (SPFI):

• A regional Wells Fargo for Texas and Eastern New Mexico, offering a full suite of commercial and consumer banking services, plus insurance.
• Think of it as a community-focused Bank of America, tailored specifically for small businesses and individuals in its Texas and New Mexico markets, and also offering specialized services like crop insurance.

• Deposit Accounts: Offers various accounts including demand deposit accounts, interest-bearing products, savings accounts, and certificates of deposit.
• Commercial Loans: Provides diverse lending solutions for businesses, covering commercial real estate, agriculture, energy, construction, and other industries.
• Residential & Consumer Loans: Offers financing for residential construction, home purchases (1-4 family), automobiles, recreational vehicles, and other personal needs.
• Insurance Products: Delivers specialized crop insurance products to clients.
• Trust Services: Provides comprehensive trust products and administrative services.
• Investment Services: Offers financial advisory and management services for investments.
• Mortgage Banking Services: Facilitates residential mortgage lending and related services.
• Digital Banking Services: Includes convenient online and mobile banking platforms for account management.
• Card Services: Issues debit and credit cards for payments and financial access.

Major Customers of South Plains Financial (SPFI)

South Plains Financial (SPFI), through its subsidiary City Bank, serves a broad customer base, primarily consisting of small and medium-sized businesses and individuals within Texas and Eastern New Mexico.

Customer Categories:

• Small and Medium-Sized Businesses: These customers utilize a range of commercial financial services. This includes various types of commercial real estate loans; general and specialized commercial loans for sectors such as agriculture, energy, finance, investment, insurance, goods, services, restaurant, retail, and construction industries; and deposit products like demand deposit accounts. Additionally, businesses may access crop insurance products, trust products, and investment services.
• Individuals/Consumers: This category encompasses individuals who engage with the bank for personal financial services. Offerings include a variety of deposit products such as demand deposit accounts, interest-bearing products, savings accounts, and certificate of deposits. They also access residential construction loans, 1-4 family residential loans, auto loans, and other personal loans. Further services for individuals include mortgage banking, online and mobile banking, debit and credit cards, and investment and trust services.

• Fiserv (FISV)

Curtis C. Griffith
Chairman and Chief Executive Officer

Mr. Griffith has served as Chairman of South Plains Financial, Inc. since 1993 and as its Chief Executive Officer. He previously held the position of President of South Plains Financial, Inc.. He brings extensive banking experience and established business and banking relationships within the company's markets to his role.

Steven B. Crockett
Chief Financial Officer and Treasurer

Mr. Crockett has been the Chief Financial Officer and Treasurer of South Plains Financial, Inc. and Chief Financial Officer of City Bank since 2015. Prior to this, he served as Senior Vice President and Controller of the Company from 2010 to 2014, and as Controller of City Bank from 2001 to 2014. His career began in public accounting in 1994, including seven years with Robinson Burdette Martin & Cowan, LLP, an accounting firm that previously operated as a practicing office of PricewaterhouseCoopers, LLP. He is responsible for financial and regulatory reporting, coordinating financial statement audits, budgeting, capital forecasting, and financial projections. He is a licensed Certified Public Accountant and holds an accounting degree from Abilene Christian University.

Cory T. Newsom
Director and President

Mr. Newsom was appointed President of South Plains Financial, Inc. in 2019 and has been a member of its board of directors since 2008. Between 2004 and 2019, he held various positions within the Company, including Chief Operating Officer, Senior Vice President, and Executive Vice President. He also served as Chief Operating Officer of City Bank from 1993 to 2007 before assuming the roles of President and Chief Executive Officer of City Bank in 2008, which he continues to hold. Mr. Newsom commenced his banking career in 1984. He earned a Bachelor of Business degree in management from Texas Tech University in 1989.

Mikella D. Newsom
Chief Risk Officer and Secretary

Ms. Newsom has more than 20 years of experience with City Bank and its predecessors, serving as Chief Risk Officer of City Bank since 2015. Previously, she held the titles of Senior Vice President and Chief Financial Officer of City Bank. She is a member of the Texas Bankers Association Community Bankers Council. Ms. Newsom holds a Bachelor of Science degree in agricultural economics from Texas Tech University.

Brent A. Bates
Senior VP of City Bank & Chief Credit Officer of City Bank

Mr. Bates holds the titles of Senior Vice President of City Bank and Chief Credit Officer of City Bank. He is also recognized as the Chief Credit Officer for South Plains Financial.

The key risks to South Plains Financial (SPFI) primarily stem from the inherent nature of the banking industry and its specific operational footprint.

1. Interest Rate Risk: South Plains Financial is significantly exposed to interest rate fluctuations, which can profoundly impact its revenue streams, asset values, and overall liquidity. As a bank, its profitability, specifically net interest income, is sensitive to the spread between interest earned on assets and interest paid on liabilities. Imbalances in the maturity or re-pricing of assets and liabilities, influenced by external factors such as Federal Reserve policies and economic conditions, could adversely affect earnings, loan demand, refinancing activities, and funding costs.

2. Regulatory Changes and Compliance Costs: The company operates within a highly regulated financial industry, and evolving regulations pose a significant risk. With South Plains Financial's transition from an emerging growth company to an accelerated filer, it faces increased regulatory and disclosure requirements. These heightened compliance obligations can lead to higher operational costs, thereby pressuring net income and affecting key return metrics.

3. Credit and Geographic Concentration Risk: South Plains Financial's loan portfolio is concentrated within Texas, which exposes the company to geographic concentration risk. This focus on a specific regional market makes the bank particularly vulnerable to localized economic downturns, adverse changes in the state's economy, or specific industry challenges within Texas. Such conditions could lead to significant credit losses and a material adverse effect on the company's financial results.

The emergence of digital-first financial service providers, including neobanks and specialized fintech companies, poses a threat by offering banking, lending, and payment solutions primarily through online and mobile platforms. These entities often operate with lower overheads than traditional banks, enabling them to offer competitive rates, modern user experiences, and specialized products that can attract South Plains Financial's individual and small-to-medium business customers away from its branch-based model. Additionally, the increasing entry of large technology companies into financial services, leveraging their extensive customer bases and technological capabilities to offer payment solutions, credit, and other financial products, represents a growing competitive threat to traditional banking relationships and revenue streams.

South Plains Financial, Inc. (symbol: SPFI) operates in Texas and Eastern New Mexico, offering a range of commercial and consumer financial services. The addressable markets for its main products and services in these regions are sized as follows:

Texas

• Real Estate Loans & Collateralized Debt: The market size for the Real Estate Loans & Collateralized Debt industry in Texas is projected to be $76.1 billion in 2026. This category includes both commercial and residential real estate loans.
• Commercial Real Estate: The commercial real estate (CRE) sector in Texas contributed $185 billion to the state's economy in 2023. Direct spending on CRE in Texas exceeded $71.7 billion in 2023, broken down into segments such as office ($16.7 billion), industrial ($34.7 billion), warehouse ($14.3 billion), and retail ($5.9 billion). Commercial construction spending in Texas totals $90 billion annually.
• Residential Mortgage Lending: As of January 2026, the median home price in Texas ranged from approximately $340,000 to $350,000.
• Auto Loans: In 2023, the vehicle financing industry in Texas had an economic impact of $18.4 billion. Texas originated over 3 million new auto loans in 2023, representing more than 10% of the national total. The average balance per auto loan in Texas was $19,183. The broader U.S. car loan market is estimated at $175.86 billion in 2024, with projections to reach $219.80 billion by 2029.
• Crop Insurance: In 2024, crop insurance in Texas provided $7.5 billion in liability protection, covering 55.8 million acres. Farmers in Texas paid $604.7 million for this insurance, and insurers paid $2 billion to cover crop losses. The U.S. crop insurance market is projected to reach $16.83 billion by 2026.

New Mexico

• Real Estate Loans & Collateralized Debt: The market size for the Real Estate Loans & Collateralized Debt industry in New Mexico is estimated at $1.2 billion in 2026.
• Residential Mortgage Lending: The median sale price of a home in New Mexico was approximately $403,100 as of March 2026. Another report notes the median home sale price at $355,500 in March 2026. The median sold price for a home was $323,320, with an approximate monthly mortgage payment of $2,660.
• Auto Loans: The average auto loan payment in New Mexico increased to $728 in June 2024. The auto industry contributed $3.88 billion to New Mexico's gross state product.
• Crop Insurance: In 2024, crop insurance in New Mexico provided $787.9 million in liability protection for 34 million acres. Farmers paid $74.7 million for coverage, and insurers paid $127.1 million to cover losses. The total liability for crop insurance in New Mexico was $787,594,448 in 2024.

Here are the expected drivers of future revenue growth for South Plains Financial (SPFI) over the next 2-3 years:

1. Loan Growth: South Plains Financial anticipates an acceleration in loan growth, targeting mid-to-high single digits in 2026. This follows a 2.9% growth in loans held for investment during 2025. Stronger loan growth has previously contributed to better-than-expected earnings.
2. Strategic Acquisitions: The acquisition of BOH Holdings, Inc., the parent company of Bank of Houston, is a significant driver. This all-stock transaction, valued at approximately $105.9 million, will expand South Plains Financial's presence in the fast-growing Houston market, adding scale and new customer relationships. The acquisition is expected to be 11% accretive to SPFI's earnings per share in 2027 and will enhance its geographic footprint in the Houston metropolitan statistical area.
3. Net Interest Margin (NIM) Management: The company has demonstrated effective management of its net interest margin, which was 4.00% in the fourth quarter of 2025, up 25 basis points from the previous year. This improvement is attributed to lower funding costs and deposit pricing power, with expectations for NIM to remain in the 3.9%-4% range in 2026.
4. Recruitment of Experienced Lenders: South Plains Financial is actively executing a strategy to accelerate earnings power through the addition of experienced lenders across its markets. This initiative is designed to drive organic loan growth by bringing new relationships to City Bank.

Share Repurchases

• South Plains Financial authorized a new stock repurchase program of up to $10 million, which is set to run until February 23, 2027.
• This program allows the company to buy back up to 1.5% of its outstanding common stock.
• A previous $10 million stock buyback program was authorized in March 2020 and expired in April 2021.

Share Issuance

• In December 2025, South Plains Financial agreed to acquire BOH Holdings, Inc. in an all-stock transaction, expecting to issue approximately 2.8 million shares of its common stock.

Outbound Investments

• South Plains Financial agreed to acquire BOH Holdings, Inc. and its subsidiary, Bank of Houston, for approximately $105.9 million in an all-stock transaction in December 2025.
• This acquisition is intended to expand City Bank's presence in the Houston market and is expected to close in the second quarter of 2026.

Capital Expenditures

• South Plains Financial invested $1.0 million in capital expenditures during the fourth quarter of 2025.
• This amount represented a 40.3% decrease in capital expenditures compared to the prior quarter.