Bank7 Corp

Bank7 Corp has agreed to acquire all outstanding common stock of Century Financial Services Corporation in a cash-and-shares deal valued at about $137.3m. The transaction would create a Southwest banking group with roughly $3.3bn in total assets, adding Century's deposit base in New Mexico to Bank7's existing operations in Oklahoma, Texas and Kansas. Century Bank, founded in 1887 and New Mexico's second-largest bank headquartered in the state, runs eight branches in New Mexico and two loan production offices in Dallas and Houston, and reported total assets of $1.36bn, total deposits of $1.23bn and gross loans of $845m at 30 June 2026. Bank7 plans to keep the Century Bank name and brand, and said it will use surplus capital built up over time rather than share buy-backs, dividends or organic expansion to fund the deal. Century will merge into Bank7, which will remain the surviving entity, and Century Bank will then merge into Bank7.

Bank7 reported a strong second quarter of 2026, with management expressing satisfaction over a $3.7 million net gain from oil and gas assets that also eliminated the risk of a larger loss from 2023. The company incurred heavier expenses related to IT changes addressing material weaknesses and potential M&A activity, but recurring results were solid. Asset quality is at its best, and the bank is well-positioned with ample liquidity, no debt, strong earnings, and heavy capital for organic growth and acquisitions. Regarding the pending stock purchase agreement, CEO Thomas L. Travis noted that a court auction is expected in August, with a proposed end date of September 3, and if successful as the stalking horse bidder, the bank intends to acquire the remaining 29% minority interest. Loan growth guidance remains mid-single-digit for the full year, with a robust pipeline expected to offset significant paydowns, while deposit costs were static at 2.28% to 2.3% in June. The core net interest margin is projected in the 4.45% to 4.53% range, and the bank would benefit from any future rate hike due to its asset sensitivity.

Bank7 announced it agreed to acquire an approximately 71% controlling stake in Century Financial Services Corporation, the parent of Century Bank in Santa Fe, New Mexico. The stake is being acquired through a court-supervised sale process, with Bank7 serving as the stalking horse bidder and setting the initial bid terms. The deal remains subject to competing bids, court approval, regulatory approvals, and customary closing conditions, and is expected to close in the third quarter of 2026. Following completion, the combined company would have approximately $3.4 billion in total assets, expanding Bank7's footprint into New Mexico and deploying excess capital into long-term growth.