South Plains Financial : Fourth Quarter 2022 Earnings Presentation

South Plains Financial

Fourth Quarter and Year-End 2022 Earnings Presentation

January 26, 2023

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-looking statements reflect South Plains' current views with respect to, among other things, the ongoing COVID-19 pandemic, 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. Forward-looking statements include, but are not

limited to: (i) projections and estimates of revenues, expenses, income or loss, earnings or loss per share, and other financial items, (ii) statements of plans, objectives and expectations of South Plains or its management, (iii) statements of future economic performance, and (iv) statements of assumptions underlying such statements. Forward-looking statements should not be relied on because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of South Plains and City Bank. These risks, uncertainties and other factors may cause the actual results, performance, and achievements of South Plains and City Bank to be materially different from the anticipated future results, performance or achievements expressed in, or implied by, the forward-looking statements. Factors that could cause such differences include, but are not limited to, local, regional, national and international economic conditions, the extent of the impact of the COVID-19 pandemic (and any current or future variant thereof), including the impact of actions taken by governmental and regulatory authorities in response to such pandemic, such as the Coronavirus Aid, Relief, and Economic Security Act and subsequent related legislations, and the programs established thereunder, and City Bank's participation in such programs, volatility of the financial markets, changes in market interest rates, the persistence of the current inflationary environment in the United States and our market areas, the uncertain impacts of quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System, regulatory considerations, competition and market expansion opportunities, changes in non-interest expenditures or in the anticipated benefits of such expenditures, the receipt of required regulatory approvals, changes in non-performing assets and charge-offs, adequacy of loan loss reserves, changes in tax laws, current or future litigation, regulatory examinations or other legal and/or regulatory actions, the impact of any tariffs, terrorist threats and attacks, acts of war or threats thereof or other pandemics. Due to these and other possible uncertainties and risks, South Plains 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 presentation. For more information about these factors, please see South Plains' reports filed with or furnished to the U.S. Securities and Exchange Commission (the "SEC"), including 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." Further, any forward-looking statement speaks only as of the date on which it is made and South Plains undertakes no obligation to update or revise any forward- looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law. All forward-looking statements, express or implied, herein are qualified in their entirety by this cautionary statement.

NON-GAAP FINANCIAL MEASURES

Management believes that certain non-GAAP performance measures used in this presentation provide meaningful information about underlying trends in its business and operations and provide both management and investors a more complete understanding of the Company's financial position and performance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, SPFI's reported results prepared in accordance with GAAP. Numbers in this presentation may not sum due to rounding.

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Today's Speakers

Curtis C. Griffith

Chairman & Chief Executive

Officer

Cory T. Newsom

President

Steven B. Crockett

Chief Financial Officer &

Treasurer

• Elected to the board of directors of First State Bank of Morton, Texas, in 1972 and employed by it in 1979
• Elected Chairman of the First State Bank of Morton board in 1984
• Chairman of the Board of City Bank and the Company since 1993
• Entire banking career with the Company focused on lending and operations
• Appointed President and Chief Executive Officer of the Bank in 2008
• Joined the Board in 2008
• Appointed Chief Financial Officer in 2015
• Previously Controller of City Bank and the Company for 14 and 5 years respectively
• Began career in public accounting in 1994 by serving for seven years with a local firm in Lubbock, Texas

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Fourth Quarter and Full Year 2022 Highlights

Fourth Quarter 2022

Organic Loan Growth	Net Income	Return on Average Assets	Net Interest Margin (1)
8.6% Annualized	$12.6 M	("ROAA") 1.27%	("NIM") 3.88%
Loans Held for Investment	EPS - Diluted	Efficiency Ratio	Average Yield on Loans
("HFI") $2.75 B	$0.71	66.4%	5.59%

Full Year 2022

Organic Loan Growth	Net Income	ROAA
12.7%	$58.2 M	1.47%	NIM (1)
Total Assets	EPS - Diluted	Efficiency Ratio	3.73%
$3.94 B	$3.23	66.8%

1. • For the full year 2022, the Bank delivered 12.7% loan growth, above the Company's mid to high single digit guidance
   • The Bank's loan portfolio in its major metropolitan markets(2) grew 19.2% to $878.8 million, representing 32% of the
     Bank's total loan portfolio
   • Credit quality remained stable as the ratio of nonperforming assets to total assets was 20 bps in 4Q'22 and in 3Q'22 as compared to 30 bps in 4Q'21
   • Diligently managed expenses to drive profitability as mortgage banking revenues declined
   • Remained focused on returning capital to shareholders having repurchased 4.8% of shares outstanding as of December 31, 2021 while distributing $0.46 per share in quarterly dividends in 2022, a 53% increase YoY
   • 2023 strategic priority shift due to a conservative economic outlook prompting prudent management of the balance sheet while taking action on multiple levers to sustain liquidity and profitability
2. Net interest margin is calculated on a tax-equivalent basis

(2) The Bank defines its "major metropolitan markets" to include Dallas, Houston and El Paso, Texas

Source: Company documents

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Loan Portfolio

Total Loans HFI

$ in Millions

$2,748

$2,690

$2,580

$2,438 $2,454

5.57%5.59%

5.12%

4.90%

4.80%

4Q21		1Q22	2Q22	3Q22	4Q22
		Total Loans HFI			Yield

4Q'22 Highlights

• Loans HFI increased $57.7 million from 3Q'22, primarily due to organic net loan growth
  o Organic net loan growth remained relationship-focused, occurring primarily in commercial real estate loans, residential mortgage loans and consumer auto loans, partially offset by a decrease in hotel and agriculture loans
• Loans HFI increased $310.5 million from 4Q'21
• 4Q'22 yield on loans of 5.59%; an increase of 47 bps compared to 3Q'22
  o Included 12bps for a purchased loan recovery on one credit in the 4Q'22 yield

Source: Company documents

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