Exhibit 99.1

South Plains Financial, Inc. Reports Third Quarter 2023 Financial Results

LUBBOCK, Texas, October 24, 2023 (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 September 30, 2023.

Third Quarter 2023 Highlights

Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “I am very proud of our performance once again this quarter as we delivered net interest income growth despite continued pressure on our funding costs. We have benefited from the strong loan growth delivered during the first half of 2023 combined with a healthy rise in our loan portfolio’s yield, which increased an additional sixteen basis points to 6.10% in the third quarter.  We also believe we have ample opportunities to reprice both our commercial loan and indirect auto portfolios over the next year which will continue to drive interest income growth even if our balance sheet only experiences moderate growth given the slowing economy.  Importantly, we have not sacrificed credit quality as the credit metrics of our loan portfolio remain strong, evidenced by our nonperforming assets being at their lowest level since before our IPO in 2019.  While we continue to deliver solid growth and strong credit metrics, our share price has remained below what we believe to be intrinsic value.  As a result, we repurchased 355,000 shares for total proceeds of $9.3 million in the third quarter.”

Results of Operations, Quarter Ended September 30, 2023

Net Interest Income

Net interest income was $35.7 million for the third quarter of 2023, compared to $34.6 million for the second quarter of 2023 and $35.1 million for the third quarter of 2022. Net interest margin, calculated on a tax-equivalent basis, was 3.52% for the third quarter of 2023, compared to 3.65% for the second quarter of 2023 and 3.70% for the third quarter of 2022. The average yield on loans was 6.10% for the third quarter of 2023, compared to 5.94% for the second quarter of 2023 and 5.12% for the third quarter of 2022. The average cost of deposits was 207 basis points for the third quarter of 2023, which is 40 basis points higher than the second quarter of 2023 and 157 basis points higher than the third quarter of 2022.

Interest income was $56.5 million for the third quarter of 2023, compared to $50.8 million for the second quarter of 2023 and $41.1 million for the third quarter of 2022. Interest income increased $5.7 million in the third quarter of 2023 from the second quarter of 2023, which was mainly comprised of an increase of $3.4 million in loan interest income and $2.3 million in interest income on other interest-earning assets. The growth in loan interest income was primarily due to an increase of $111.6 million in average loans outstanding and the rising short-term interest rate environment, as the yield on loans rose 16 basis points. The additional interest income on other interest-earning assets was predominately a result of increased liquidity maintained at the Federal Reserve Bank of Dallas and increased rates.  Interest income increased $15.7 million in the third quarter of 2023 compared to the third quarter of 2022. This increase was primarily due to an increase of average loans of $334.5 million and higher market interest rates during the period, resulting in growth of $11.8 million in loan interest income.

Interest expense was $20.8 million for the third quarter of 2023, compared to $16.2 million for the second quarter of 2023 and $6.0 million for the third quarter of 2022. Interest expense increased $4.6 million compared to the second quarter of 2023 and $14.8 million compared to the third quarter of 2022, primarily as a result of significantly rising short-term interest rates on interest-bearing liabilities, with the increase being mainly comprised of interest expense on deposits. Additionally, interest-bearing deposits have grown during both of the period comparisons. Average brokered deposits increased approximately $175 million during the third quarter 2023 from the second quarter 2023.

Noninterest Income and Noninterest Expense

Noninterest income was $12.3 million for the third quarter of 2023, compared to $47.1 million for the second quarter of 2023 and $20.9 million for the third quarter of 2022. The decrease from the second quarter of 2023 was primarily due to the $33.5 million gain on sale of Windmark Insurance Agency, Inc. (“Windmark”) in the second quarter of 2023. Additionally, bank card services and interchange revenue decreased $0.9 million for the third quarter of 2023 compared to the second quarter of 2023, after increasing $1.1 million during the second quarter. The increase in the second quarter was mainly as a result of incentives and rebates received during the period. The decrease in noninterest income for the third quarter of 2023 as compared to the third quarter of 2022 was primarily due to a reduction of $4.8 million in income from insurance activities due to the sale of Windmark and a decrease of $1.7 million in mortgage banking revenues as originations of mortgage loans held for sale declined $50.1 million as mortgage interest rates have risen which has slowed mortgage activity. Additionally, there was $2.1 million of income in legal settlements during the third quarter of 2022.

Noninterest expense was $31.5 million for the third quarter of 2023, compared to $40.5 million for the second quarter of 2023 and $37.4 million for the third quarter of 2022. The $9.0 million decrease from the second quarter of 2023 was largely the result the second quarter having $4.5 million in personnel and transaction expenses as part of the Windmark sale plus related incentive compensation and a $3.4 million loss on the sale of securities. The decrease in noninterest expense for the third quarter of 2023 as compared to the third quarter of 2022 was primarily driven by a reduction of $2.9 million in Windmark expenses due to the sale, a reduction of $1.8 million in mortgage personnel costs due to the decline in mortgage loan originations and a decrease of $759 thousand in legal expenses incurred largely as a result of a vendor dispute, which was resolved and accounted for by the end of 2022.

Loan Portfolio and Composition

Loans held for investment were $2.99 billion as of September 30, 2023, compared to $2.98 billion as of June 30, 2023 and $2.69 billion as of September 30, 2022. The $14.5 million, or 1.9% annualized, increase during the third quarter of 2023 as compared to the second quarter of 2023 occurred primarily in commercial real estate loans, residential mortgage loans, seasonal agricultural loans, and energy loans, partially offset by $16.5 million in loan payoffs of nonperforming credits as detailed below. As of September 30, 2023, loans held for investment increased $303.2 million, or 11.3% year over year, from September 30, 2022, primarily attributable to strong organic loan growth.

Deposits and Borrowings

Deposits totaled $3.62 billion as of September 30, 2023, compared to $3.57 billion as of June 30, 2023 and $3.46 billion as of September 30, 2022. Deposits increased by $46.1 million, or 1.3%, in the third quarter of 2023 from June 30, 2023. As of September 30, 2023, deposits increased $160.1 million, or 4.6% year over year, from September 30, 2022. Noninterest-bearing deposits were $1.05 billion as of September 30, 2023, compared to $1.10 billion as of June 30, 2023 and $1.26 billion as of September 30, 2022. Noninterest-bearing deposits represented 28.9% of total deposits as of September 30, 2023. The quarterly growth in deposits was mainly the result of an increase of $71 million in brokered deposits, partially offset by a decrease of $14 million in public-fund deposits. The year-over-year increase in deposits is primarily a result of growth of $152 million in brokered deposits in the second and third quarters of 2023 given the overall focus on improving liquidity.

Asset Quality

The Company recorded a negative provision for credit losses in the third quarter of 2023 of $0.7 million, compared to $3.7 million in the second quarter of 2023 and a negative provision of $0.8 million in the third quarter of 2022. The negative provision during the third quarter of 2023 was largely attributable to a reduction of $1.3 million in specific reserves, partially offset by organic loan growth and net charge-off activity during the third quarter. The reduction in specific reserves was a result of the full repayment of a $13.3 million nonaccrual relationship in the third quarter. Classified loans declined $16.8 million during the third quarter of 2023 to $50.7 million from $67.4 million at June 30, 2023.

The ratio of allowance for credit losses to loans held for investment was 1.41% as of September 30, 2023, compared to 1.45% as of June 30, 2023 and 1.47% as of September 30, 2022.

The ratio of nonperforming assets to total assets as of September 30, 2023 was 0.12%, compared to 0.51% as of June 30, 2023 and 0.20% at September 30, 2022. Annualized net charge-offs (recoveries) were 0.05% for the third quarter of 2023, compared to 0.05% for the second quarter of 2023 and (0.10)% for the third quarter of 2022. The decrease in nonperforming assets was a result of the full repayment of the $13.3 million relationship noted above and full repayment of a $3.3 million nonperforming relationship during the third quarter.

Capital

Book value per share decreased to $22.39 at September 30, 2023, compared to $23.13 at June 30, 2023. The decrease was primarily driven by a decrease in accumulated other comprehensive income (“AOCI”) and by $9.3 million in share repurchases, partially offset by an increase of $11.3 million of net income after dividends paid. The decrease in AOCI was attributed to the after-tax decline in fair value of our available for sale securities, net of fair value hedges, as a result of significant increases in long-term market interest rates during the period.

Conference Call

South Plains will host a conference call to discuss its third quarter 2023 financial results today, October 24, 2023, at 5:00 p.m., Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-9716 (international callers please dial 1-201-493-6779) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call and conference materials will be available on the Company’s website at https://www.spfi.bank/news-events/events.

A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed on the investor section of the Company’s website as well as by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671). The pin to access the telephone replay is 13741532. The replay will be available until November 7, 2023.

About South Plains Financial, Inc.

South Plains is the bank holding company for City Bank, a Texas state-chartered bank headquartered in Lubbock, Texas. City Bank is one of the largest independent banks in West Texas and has additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. South Plains provides a wide range of commercial and consumer financial services to small and medium-sized businesses and individuals in its market areas. Its principal business activities include commercial and retail banking, along with investment, trust and mortgage services. Please visit https://www.spfi.bank for more information.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Pre-Tax, Pre-Provision Income. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.

We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.

A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.

Available Information

The Company routinely posts important information for investors on its web site (under www.spfi.bank and, more specifically, under the News & Events tab at www.spfi.bank/news-events/press-releases). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.

The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this document.

Forward Looking Statements

This press release contains 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 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. South Plains cautions that the forward-looking statements in this press release are based largely on South Plains’ expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond South Plains’ control. Factors that could cause such changes include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from recent bank failures and any continuation of the recent uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits and related changes in deposit customer behavior; changes in market interest rates; the persistence of the current inflationary environment in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; the effects of declines in housing prices in the United States and our market areas; increases in unemployment rates in the United States and our market areas; declines in commercial real estate prices; uncertainty regarding United States fiscal debt and budget matters; cyber incidents or other failures, disruptions or security breaches; severe weather, natural disasters, acts of war or terrorism or other external events; regulatory considerations; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; and changes in applicable laws and regulations. Additional information regarding these risks and uncertainties to which South Plains’ business and future financial performance are subject is contained in 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” of such documents, and other documents South Plains files or furnishes with the SEC from time to time, which are available on the SEC’s website, www.sec.gov. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which South Plains is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, the Company 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 press release. Any forward-looking statements presented herein are made only as of the date of this press release, and South Plains does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

Source: South Plains Financial, Inc.

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