Deal would boost Lubbock-based bank's profile in Houston

Core Viewpoint - South Plains Financial has announced its acquisition of BOH Holdings and its subsidiary, Bank of Houston, for $105.1 million in stock, enhancing its presence in Houston, Texas [1][2]. Group 1: Acquisition Details - The acquisition involves BOH Holdings, which has $772 million in assets, and will result in South Plains having $643 million in deposits across two branches in Houston, making it the 11th largest Texas-headquartered bank in the city [1][2]. - The merger is expected to close in the first quarter of 2026, with BOH's CEO Jim Stein joining South Plains and continuing to lead the Houston team [5]. Group 2: Financial Performance - BOH reported loans totaling $628.8 million as of September 30, 2025, reflecting a 4% increase from the previous year, while net income for the first nine months of 2025 was $8.2 million, a 42% increase year-over-year [4]. - South Plains' loan growth was flat for the year ending September 30, 2025 [4]. Group 3: Market Context and Future Outlook - The Houston metropolitan area, with a population of 7.8 million, is projected to grow by 7.8% from 2025 to 2031, indicating a favorable environment for banking operations [2]. - Analysts view the acquisition as a low-risk transaction that enhances South Plains' loan growth potential, with expected earnings accretion of approximately 11% in 2027 and projected cost savings of 25% of BOH's operating expenses [6][7]. - The banking sector has seen significant M&A activity in 2025, with 169 transactions totaling $46.1 billion reported, suggesting a robust market for future acquisitions [11].