South Plains Financial, Inc. (NASDAQ: SPFI) entered into a definitive merger agreement on December 1, 2025 to acquire BOH Holdings, Inc., the parent company of Bank of Houston, in an all‑stock transaction valued at approximately $105.9 million. The deal will combine the two banks into a single entity with roughly $5.4 billion in assets, $3.8 billion in loans and $4.6 billion in deposits, and will expand SPFI’s footprint to 26 branches across Texas, adding a significant presence in the Houston metropolitan area.
The acquisition is strategically designed to accelerate SPFI’s growth in Texas by adding scale and geographic reach. The combined bank will be the 11th largest deposit‑holding institution in Houston, giving it a stronger platform to compete for high‑net‑worth customers and commercial lending opportunities. The transaction is expected to be accretive to SPFI’s earnings per share by 11% in 2027, with a valuation multiple of 6.8 times estimated 2027 earnings and a tangible book value earnback in less than three years, underscoring the financial attractiveness of the deal.
SPFI’s Q3 2025 results provide a solid backdrop for the acquisition. Net income rose to $16.3 million, up 12% from $14.6 million in Q2 2025, while diluted EPS of $0.96 beat analyst expectations of $0.86 by $0.10, a 12% beat. Revenue of $54.18 million also exceeded the $54.07 million consensus by $0.11 million. The earnings beat was driven by disciplined cost management and a favorable mix of higher‑margin retail and commercial lending, offsetting a modest decline in loan growth due to higher interest‑rate sensitivity. The revenue beat reflected a 3% increase in deposit‑based funding and a 4% rise in loan originations, supported by strong demand in the Dallas and Permian Basin markets.
CEO Curtis Griffith emphasized that the deal represents a “critical step” in SPFI’s strategy to build a statewide banking network and to leverage BOH’s established franchise in Houston. He noted that the integration plan will preserve BOH’s local brand while aligning back‑office operations to achieve cost synergies of $5 million annually. The transaction also positions SPFI to pursue future growth through organic expansion and selective acquisitions, as the combined entity will have a larger capital base and a broader customer base.
The transaction is subject to customary regulatory approvals and BOH shareholder consent, with an expected closing in the second quarter of 2026. No immediate market reaction data is available, but the deal aligns with SPFI’s recent earnings momentum and its long‑term growth strategy.
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