SPFI is acquiring BOH Holdings in an all-stock merger valued at about $106 million, with closing anticipated in early to mid-2026 following customary approvals and shareholder consent.

The deal will add roughly $772 million in assets to SPFI, lifting pro forma totals to about $5.4 billion in assets, $3.8 billion in loans, and $4.6 billion in deposits.

The pro forma loan mix remains stable, with commercial loans around two-thirds of lending, residential mortgages about 20%, and consumer loans roughly 15%, aligning with both firms’ profiles.

Deposit costs are expected to stay low at about 2.21%, and non-interest-bearing deposits account for about 27% of total deposits, indicating a high-quality funding base.

At closing, pro forma capital ratios are projected to be roughly 10.2% tangible common equity and 13.9% CET1, which remains solid for SPFI’s rating band.

KBRA views the acquisition as strategically consistent with SPFI’s goal of building a larger Texas franchise, expanding in the Houston area and broadening commercial and private banking relationships.

KBRA also notes that the deal would enhance long-term profitability through scale and synergies, with limited execution risk given management’s prior M&A experience.

KBRA’s surveillance perspective is cited to frame the broader context of the rating agency’s role in this transaction.

Conservatively, KBRA estimates a gross credit mark of $7.6 million (about 1.2% of BOH’s loans) and an interest-rate mark of $1.6 million, amortized over five years, based on 65% of BOH’s loans reviewed.

BOH’s leadership, including Jim Stein, will join SPFI and City Bank, with Stein joining SPFI’s board of directors.

Overall, the transaction is poised to strengthen SPFI’s position in Texas and support a more scalable, relationship-driven platform.