The agreement, which would give the combined company $5.4 billion in assets, marks South Plains’ latest push to build scale across the state as Houston remains one of the nation’s fastest-growing banking markets.

South Plains Financial, the parent company of City Bank in Lubbock, Texas, has agreed to acquire BOH Holdings, the parent of Bank of Houston, in an all-stock transaction valued at roughly $105.9 million. The deal would fold BOH into South Plains and significantly broaden the company’s reach in one of the state’s most competitive banking markets.

City Bank, already one of the largest independent banks in West Texas, operates across Dallas, El Paso, Greater Houston, the Permian Basin and College Station, as well as Ruidoso, New Mexico. 

The proposed deal represents a substantial expansion of its Houston presence, giving the pro forma company the 11th largest deposit base among Texas-headquartered banks in the metropolitan area.

As of Sept. 30, BOH reported $772 million in assets, $633 million in loans and $629 million in deposits. Upon completion of the merger, expected in the second quarter of 2026 pending regulatory and shareholder approval, the combined institution would have about $5.4 billion in assets, $3.8 billion in loans and $4.6 billion in deposits.

Curtis Griffith, chairman and chief executive of South Plains, said the acquisition reflects an acceleration of the company’s expansion strategy. “Over the past year, we have been executing a strategy designed to accelerate the earnings power of City Bank by adding experienced lenders across our markets to drive organic loan growth while also exploring accretive M&A to expand our reach,” he said. He noted that BOH brings “long standing customer relationships” in a fast-growing region and argued that the combination “will deliver substantial value to both South Plains’ and BOH’s shareholders.”

Story continued below…

Jim Stein, chairman, president and chief executive of BOH, said joining South Plains would strengthen Bank of Houston’s ability to compete. “Houston is a dynamic community banking market, and this partnership provides needed resources to help accelerate our combined growth which we believe will drive value for our shareholders that we could not have achieved on our own,” he said. He also praised South Plains’ “low cost, community deposits” and its product suite, adding that the deal would create opportunities for employees.

Cory Newsom, president of South Plains, emphasized that cultural alignment was central to the decision. He described BOH’s team and credit culture as “very similar to ours,” saying that the match would “minimize disruption as we integrate BOH into our operations.”

Under the terms of the agreement, BOH shareholders would receive 0.1925 South Plains shares for each BOH share. South Plains expects to issue about 2.8 million shares, leaving BOH shareholders with approximately 14.5% of the combined company. Stein will join South Plains after the merger and take a board seat at both South Plains and City Bank.

The deal adds to a year of heavy acquisition activity in Texas, where larger Midwestern banks such as Fifth Third and Huntington have also targeted expansion. South Plains itself last completed a major acquisition in 2019, when it purchased West Texas State Bank to enter the Permian Basin.

“I also believe there is more opportunity ahead to further grow City Bank. I have often spoken to our ability to execute acquisitions given the investments that we have made across the Company’s infrastructure and technology platforms that positions South Plains to efficiently scale our operations as we continue to expand across our markets.”

– Curtis Griffith
Chairman & Chief Executive
South Plains Financial