South Plains Financial: CEO Transition Amid Profit Surge and BOH Acquisition

South Plains Financial is transitioning its leadership as Curtis Griffith prepares to hand over the role to Cory Newsom at the end of the year. The move follows a period of aggressive expansion, highlighted by the April 1, 2026, acquisition of BOH Holdings (the parent company of Bank of Houston), which expanded the bank’s balance sheet to $5.4 billion.

Financial Performance and the BOH Holdings Acquisition

South Plains Financial reported a net income of $19.0 million for the second quarter of 2026, representing $0.96 per share. According to company financial reports, this is a 31% increase compared to the previous quarter. The primary driver of this growth was the integration of BOH Holdings, which added approximately $667 million in interest-earning assets to the portfolio.

The bank’s net interest income rose 17.2% to $50.3 million. However, the net interest margin saw a slight dip to 4.00%, a shift the company attributes to the cost of refinancing obligations inherited from the acquired bank. Efficiency improved significantly, with the efficiency ratio dropping to 61.6% from a previous 65.3%, while the return on average assets climbed to 1.44%.

Strategic Shift Toward Texas Metropolitan Markets

The acquisition has fundamentally altered the bank’s geographic footprint. Loans in metropolitan areas now account for 44.7% of the total loan book, a jump of roughly 12 percentage points in a single quarter. Management is specifically targeting Houston, one of the largest metro regions in the U.S. with an economic output exceeding $750 billion, to drive future growth.

Credit Quality and Shareholder Returns

The integration of Bank of Houston assets has impacted the bank’s credit metrics. Non-performing loans rose to 0.25% of total loans, and classified loans increased to $80.3 million. Management stated these figures were largely expected results of the acquired portfolio. Despite this, net charge-offs remained low at 0.06% on an annualized basis.

The board of directors also approved a dividend increase. The bank established a quarterly dividend of $0.18 per share—a 6% increase—payable on August 10, 2026, to shareholders of record on July 27, 2026.

Future Outlook and Growth Strategy

Management expects acquisition-related costs to decline in the third quarter of 2026. The company anticipates that cross-selling opportunities for former Bank of Houston customers will yield more significant results in the fourth quarter. Despite $37.5 million in early loan repayments, the annual forecast for loan growth remains in the low single-digit percentage range.

South Plains Financial maintains that it is well-capitalized for further acquisitions, provided the targets align with its Texas-centric focus and existing credit culture.