#United States #Oklahoma City #New Mexico #Bank7 Corp #Century Financial

Bank7 Corp. Expands Southwest Franchise Through Acquisition of Century Financial Services

In a decisive move to reinforce its foothold in the Southwest, Bank7 Corp. (NASDAQ: BSVN), headquartered in Oklahoma City, has finalized an agreement to acquire Century Financial Services Corporation, a bank holding entity based in Santa Fe, New Mexico. The merger agreement marks a significant expansion of Bank7's operations, allowing it to tap into the long-established legacy and customer base of Century Bank, which has been serving local communities for over a century.

A New Chapter for Century Bank

Century Bank was founded in 1887 and stands as one of the last independent banks in New Mexico, ranking as the second largest in the state. With a network of eight branches and additional loan production offices in Dallas and Houston, Century Bank thrives on its relationship-oriented banking model, driving economic growth in its communities. As of June 30, 2026, Century Bank reported total assets of approximately $1.36 billion, with a core deposit base of $1.23 billion.

Thomas L. Travis, President and CEO of Bank7, expressed enthusiasm about the acquisition, highlighting the strong customer relationships that Century has built over the years. “We look forward to working together to enhance our service offerings and to continue the legacy that Century has established in New Mexico,” said Travis. This move is expected to create a combined banking organization with approximately $3.3 billion in total assets, allowing both entities to better serve business owners and entrepreneurs through enhanced resources and support.

Strategic Rationale Behind the Acquisition

The motivation behind this acquisition lies in Bank7's strategic goal of expanding its market reach while utilizing its excess capital effectively.

1. Premier Core Deposit Franchise: The integration of Century's legacy, core deposit franchise will bolster Bank7's funding profile, driving increased financial stability and growth for the combined organization.

2. Market Expansion: This acquisition allows Bank7 to extend its geographic footprint into New Mexico, particularly focusing on the lucrative Santa Fe market, which is strategically adjacent to its existing presence in Oklahoma, Texas, and Kansas.

3. Scarcity Value: As a rare franchise opportunity in a high-demand area, Century presents a unique chance for Bank7 to enhance its market position amid a competitive banking landscape.

4. Efficient Capital Deployment: By channeling its accumulated excess capital into this acquisition, Bank7 aims to generate stronger long-term returns versus alternative strategies such as stock buybacks or organic growth measures.

Transaction Overview and Next Steps

The acquisition process, which is contingent on necessary regulatory approvals and shareholder consent, follows Bank7's status as the successful bidder for a controlling interest in Century during a court auction. The terms of the merger imply that Bank7 will acquire 100% of Century's outstanding common stock, converting each Century share into a pro-rated share of $70 million in cash and approximately 1.23 million shares of Bank7 common stock.

The projected completion of this merger is slated for the fourth quarter of 2026, pending all requisite approvals. Furthermore, to maintain continuity for customers, Bank7 intends to retain the Century Bank name and its established brand identity, showcasing its commitment to preserving local values amid expansion.

Conclusion

In summary, Bank7's acquisition of Century Financial Services Corporation represents a strategic step forward in developing a more robust banking network in the Southwest. With shared values of community-focused banking and a commitment to enhanced customer service, both companies are poised for future growth and success. This merger not only aims to benefit their clients but also to strengthen local economies within the communities they serve. As Bank7 moves forward, it will be interesting to observe how this combination of resources and expertise shapes the banking landscape in New Mexico and beyond.