Oklahoma City-based Bank7 Corp. is looking to acquire a controlling interest in Century Financial Services Corporation, Santa Fe, N.M..The deal is expected to close in the third quarter and result in a $3.4 billion bank. Under the agreement, Bank7 Corp. will acquire 71 percent controlling ownership interest in Century Financial Services. Bank7 agreed to be the “stalking horse” bidder, setting the floor price and baseline terms for the sale. The shares were once owned by Santa Fe-based art dealer Gerald Peters. The U.S. District Court for the District of Arizona appointed a receiver to oversee the sale of the shares late last year, after Peters defaulted on two loans from KS StateBank Corporation, Manhattan, Kan., totaling more than $35 million. The agreement could be voided if a higher or otherwise better offer comes through the competitive bidding and auction process. The deal required Bank7 Corp. to pay a $7.25 million good-faith deposit, which would be credited to the purchase price if the company is the final, successful bidder. Bank7 Corp. is the parent company of $1.9 billion Bank7. The bank has a dozen branches in Oklahoma, the Dallas/Fort Worth metropolitan area and Kansas. Century Financial is the holding company for Century Bank. As of March 31, Century Bank had nine branches in New Mexico and two LPOs in Texas. The bank had $1.35 billion in assets, $1.22 billion in deposits and $826 million in gross loans. Bank7 President and CEO Thomas Travis said the deal “extends our footprint into a neighboring Southwest market, represents a disciplined use of our excess capital, and positions the combined organization to deliver personalized, high-touch service to even more business owners and entrepreneurs.”Keefe, Bruyette & Woods is financial advisor to Bank7 Corp., while Nelson Mullins Riley & Scarborough LLP is legal counsel to the company.
