South Plains Financial : Fourth Quarter 2020 Earnings Presentation

South Plains Financial

Earnings Presentation

Fourth Quarter, 2020

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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") 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, 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, including our estimated financial results for the quarter and year ended December 31, 2020, (ii) statements of plans, objectives and expectations of South Plains or its management,

1. 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, 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 interest rates, 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, 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. Therefore, 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 SEC, including South Plains' most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the U.S. Securities and Exchange Commission (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. 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

Brent A. Bates

City Bank's Chief Credit

Officer

• 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
• Began his career in public accounting in 1994 by serving for seven years with a local firm in Lubbock, Texas
• Appointed Chief Financial Officer in 2015
• Controller of the Bank and the Company for 14 and 5 years respectively
• Joined City Bank in February 2020
• Division Credit Officer for Simmons First National Corp
• EVP and Chief Credit Officer of Southwest Bancorp, Inc.

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Fourth Quarter and Full Year 2020 Highlights

Parent Company of City Bank, a leading Texas-based	NASDAQ: SPFI 4Q'20 Highlights
community bank headquartered in Lubbock, TX	 Net Income of $15.9 million, compared to $16.7 million in 3Q'20
	and $10.1 million in 4Q'19

One of the largest independent banks headquartered in West

Texas

• Diluted earnings per share of $0.87, compared to $0.92 in Q3'20 and $0.55 in 4Q'19
• Pre-Tax,Pre-Provision income of $20.0 million, compared to $26.9 million in 3Q'20 and $13.7 million in 4Q'19

$3.6 Billion in Total Assets as of December 31, 2020

Santa Fe

Albuquerque

New Mexico

• Provision for loan loss of $141 thousand, compared to $6.1 million in Q3'20 and $896 thousand in 4Q'19
• Average cost of deposits declined 3 bps to 31 bps, compared to 34 bps in 3Q'20 and 98 bps in 4Q'19
• Net Interest Margin of 3.64%, compared to 3.82% in 3Q'20 and 4.03% in 4Q'19

	Ruidoso	Lubbock			Full Year 2020 Highlights
				Dallas
				Ft. Worth	 $3.6 billion in total assets, compared to $3.2 billion at 12/31/19
		El Paso	Midland
		Texas
		Odessa	Bryan /	 Net Income of $45.4 million, compared to $29.2 million in 2019
				College Station
				Austin		 Diluted earnings per share of $2.47, compared to $1.71 in 2019
				San
				Houston
				Antonio	 Efficiency ratio of 63.0%, compared to 75.3% in 2019
					 Tangible Book value per share of $18.97 at year end 2020,
	SPFI Branches (25)
	653 FTE Employees				compared to $15.46 at year end 2019
	as of Dec. 31, 2020				 Return on Average Assets of 1.31%, compared to 1.04% in 2019
Source: Company documents	Note: Pre-tax,pre-provision income is a non-GAAP measure. See appendix for the
reconciliation to GAAP

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