Houston, December 3, 2025
South Plains Financial, Inc. has announced its definitive merger agreement to acquire BOH Holdings, strengthening its presence in the Houston market. Valued at approximately $105.9 million, the all-stock transaction will provide significant benefits to both consumers and businesses, enhancing community banking in Texas. The merger aims to combine resources, increase market competitiveness, and streamline operations, with expectations of improved earnings and cost savings.
South Plains Financial Acquires BOH Holdings: A Milestone for Houston’s Economy
Local Bank Merger Signals Strengthening Community Banking in Texas
LUBBOCK, Texas – South Plains Financial, Inc. (NASDAQ: SPFI) is taking an ambitious step in bolstering its presence in the Houston banking market with its recent announcement of a definitive merger agreement to acquire BOH Holdings, Inc., the parent company of Bank of Houston. This all-stock transaction, valued at approximately $105.9 million, positions South Plains Financial not only to enhance its market footprint but also to strengthen community banking within Texas.
The merger underscores the resilience and innovation prevalent among Texas banks, offering potential benefits to consumers and businesses alike. As regulatory environments shift, such strategic mergers can foster a more competitive banking landscape, ultimately benefiting local economies.
Transaction Details
Under the newly announced agreement, South Plains will exchange 0.1925 of its shares for each outstanding BOH share. Given South Plains’ closing price of $37.79 on November 28, 2025, the transaction is expected to issue approximately 2.8 million shares of South Plains common stock. Following the merger, former BOH shareholders will own about 14.5% of the combined entity, indicating a collaborative approach to growth.
Financial Overview of BOH Holdings
As of September 30, 2025, BOH Holdings showcased a solid financial foundation, reporting assets totaling approximately $772 million, along with $633 million in loans and $629 million in deposits. When combined with South Plains Financial’s resources, the merged entity will have around $5.4 billion in assets, $3.8 billion in loans, and $4.6 billion in deposits. This significant scale enhances the bank’s ability to serve the burgeoning Houston market effectively.
Strategic Implications for Growth
One of the most promising features of this merger is its potential impact on South Plains’ earnings. The deal is expected to be 11% accretive to earnings per share as soon as 2027. Additionally, South Plains anticipates eliminating approximately 25% of BOH’s annual operating expenses, which amounts to an estimated $4.6 million in savings. This operational efficiency could translate into better services and products for customers, driving further growth in the region.
Leadership and Integration Plans
In a testament to continuity, Jim Stein, the current Chairman, President, and CEO of BOH, will join South Plains and retain leadership over Houston operations. His appointment to the boards of directors of both South Plains and City Bank ensures consistency in management while facilitating a smooth integration process.
Regulatory Approval and Timeline
The merger is contingent on customary closing conditions, including regulatory approvals and approval by BOH’s shareholders. The deal is expected to close in the second quarter of 2026, setting a clear timeline for stakeholders as they anticipate the benefits of this merger.
Market Impact and Forward-Looking Trends
This merger reflects a broader trend in the banking industry as regional institutions pursue opportunities to consolidate resources. The combination of South Plains Financial and BOH Holdings positions the new entity to better serve the community, adapting to changing market dynamics. By fostering an environment that encourages collaboration and innovation, the Houston area could see an invigorated approach to banking services, ultimately benefitting the local economy.
Conclusion
The merger between South Plains Financial and BOH Holdings is a significant step towards strengthening banking resources in Houston. As this deal unfolds, stakeholders will undoubtedly keep a keen eye on its implications for economic growth and community well-being. Supporting local businesses, taking advantage of enhanced banking services, and staying engaged in developments like this are crucial as we look towards a thriving economic future in Texas.
Frequently Asked Questions (FAQ)
What is the value of the merger between South Plains Financial and BOH Holdings?
The merger is valued at approximately $105.9 million.
When is the merger between South Plains Financial and BOH Holdings expected to close?
The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals and BOH shareholder approval.
What are the financial highlights of BOH Holdings as of September 30, 2025?
As of September 30, 2025, BOH Holdings reported approximately $772 million in assets, $633 million in loans, and $629 million in deposits.
Who will lead the Houston operations after the merger?
Jim Stein, Chairman, President, and CEO of BOH, will join South Plains and continue leading operations in Houston. He will also be appointed to the boards of directors of both South Plains and City Bank.
What is the expected impact of the merger on South Plains Financial’s earnings?
The acquisition is expected to be 11% accretive to South Plains’ earnings per share in 2027.
Key Features of the Merger
| Feature | Details |
|---|---|
| Merger Value | Approximately $105.9 million |
| Exchange Ratio | 0.1925 South Plains shares for each BOH share |
| Combined Assets | Approximately $5.4 billion |
| Combined Loans | Approximately $3.8 billion |
| Combined Deposits | Approximately $4.6 billion |
| Expected Earnings Accretion | 11% in 2027 |
| Cost Savings | Approximately 25% of BOH’s annual operating expenses |
| Leadership Post-Merger | Jim Stein to lead Houston operations and join boards of South Plains and City Bank |
| Expected Closing Date | Second quarter of 2026, subject to approvals |
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