South Plains Financial Expands Texas Footprint with Major Houston Acquisition

South Plains Financial US83946P1075

The Texas-based banking group South Plains Financial, parent company of City Bank, has announced a definitive agreement to acquire Houston's BOH Holdings Inc. in an all-stock transaction valued at approximately $106 million. This strategic move significantly accelerates the company's expansion within the competitive Texas financial market.

Executives from both institutions have unanimously approved the deal, which is structured as a share-for-share exchange. Under the terms, shareholders of BOH Holdings will receive 0.1925 shares of South Plains Financial for each share they own. The acquisition will result in the issuance of roughly 2.8 million new South Plains shares. Upon completion, former BOH stockholders are expected to hold an aggregate 14.5% stake in the combined entity.

The merger is projected to be materially accretive to earnings. Based on financial data from September 30, 2025, the consolidated organization will boast a stronger balance sheet with about $5.4 billion in total assets, $3.8 billion in loans, and $4.6 billion in deposits. Management forecasts an 11% boost to South Plains Financial's earnings per share by 2027 as a direct result of this combination.

Entry into a Lucrative Metropolitan Market

This acquisition represents a pivotal entry for South Plains into the Houston banking landscape. BOH Holdings brings approximately $772 million in assets to the table. Post-merger, City Bank is anticipated to rank as the eleventh-largest bank by deposit share within the Houston metropolitan area among banks headquartered in Texas.

To ensure a smooth integration, Jim Stein, the current Chief Executive Officer of BOH Holdings, is slated to join the boards of both South Plains Financial and City Bank once the transaction closes.

Timeline and Broader Growth Strategy

The deal is anticipated to finalize in the second quarter of 2026, pending receipt of customary regulatory approvals and the consent of BOH Holdings' shareholders. This expansion follows South Plains Financial's earlier purchase of West Texas State Bank in 2019, reinforcing the company's stated objective of becoming a leading regional banking force across Texas.