Oklahoma City-based Bank7 Corp. has emerged as the winning bidder in the bankruptcy sale of a majority stake in Century Financial Services Corp., the Santa Fe, New Mexico-based parent company of Century Bank. The $89 million net cash purchase price surpasses the earlier stalking-horse bid of $68 million, positioning Bank7 to significantly expand its regional footprint.
Acquisition Details and Timeline
Bank7 announced on Thursday that its latest offer was accepted, securing a 71% controlling interest in Century Financial Services. The transaction is expected to close in the fourth quarter, subject to regulatory approvals. Bank7 President and CEO Thomas Travis expressed optimism about the deal, stating, “We are looking forward to completing this transaction and working closely with the employees, customers and communities served by Century.”
Strategic Expansion and Asset Growth
The acquisition will nearly double Bank7’s asset size. The combined company is projected to have approximately $3.4 billion in assets, up from Bank7’s current $1.9 billion. Century Bank, with $1.36 billion in assets, operates nine branches in New Mexico and two loan production offices in Texas. Bank7 plans to retain the Century brand and focus on the Santa Fe market, which is contiguous to its existing operations in Oklahoma, Texas, and Kansas.
Background of the Bankruptcy Sale
Century Financial Services entered bankruptcy proceedings after its majority shareholder, Gerald Peters, defaulted on loans secured by his stake in the bank. Peters, an art dealer and real estate mogul, borrowed millions from various financial institutions, including KS State Bank of Kansas, which initiated court proceedings to recover its losses. The legal disputes also involved art collateral, including works by Pablo Picasso and Andrew Wyeth, according to the Santa Fe New Mexican.
Path to Winning Bid
Bank7 initially acted as the stalking-horse bidder, setting a baseline offer of $68 million. After a competitive bidding process, the bank increased its bid to $89 million, securing the deal. Nathan Race, an analyst at Piper Sandler, noted that Bank7 executives have indicated the company is well-positioned to acquire the remaining 29% stake in Century. Travis, speaking on a July earnings call, emphasized the bank’s fair and professional approach: “We’re not adversarial people. We’re not bottom-feeder people. We’ve had plenty of transactions in our history where we deal fairly and professionally with people.”
Industry Implications
This acquisition highlights ongoing consolidation in the community banking sector, particularly as smaller institutions navigate financial distress. For Bank7, the deal offers a strategic entry into the New Mexico market, expanding its geographic reach and customer base. The transaction also underscores the role of bankruptcy auctions in facilitating orderly ownership transitions for troubled banks.