South Plains Financial, Inc. Deepens its Commitment to the Houston Market with the Acquisition of BOH Holdings, Inc.

Core Viewpoint - South Plains Financial, Inc. has announced a definitive merger agreement to acquire BOH Holdings, Inc. in an all-stock transaction valued at approximately $105.9 million, enhancing its position as a leading community bank in Texas and expanding its footprint in the Houston market [1][2][5] Transaction Details - The merger will result in BOH being merged into South Plains, with South Plains as the surviving entity [1] - The transaction is valued at approximately $105.9 million, representing a price to estimated 2027 earnings ratio of 6.8x [5][6] - Upon completion, the pro forma company will have approximately $5.4 billion in assets, $3.8 billion in loans, and $4.6 billion in deposits [2][5] Strategic Rationale - The acquisition is part of South Plains' strategy to accelerate earnings power and expand its market reach through both organic growth and mergers and acquisitions [4] - The merger is expected to be 11% accretive to South Plains' earnings per share in 2027, with an attractive tangible book value per share earnback of less than 3.0 years [5] - The transaction will provide important scale in one of the fastest-growing metropolitan statistical areas (MSAs) in the country [5] Leadership and Integration - Following the merger, Jim Stein, CEO of BOH, will join South Plains and continue to lead the Houston team, ensuring continuity and integration of operations [4][6] - The cultural alignment between South Plains and BOH is emphasized as a critical factor for successful integration [4] Approval and Timeline - The boards of directors of both companies have unanimously approved the transaction, which is expected to close in the second quarter of 2026, pending regulatory approvals and BOH shareholder approval [7]