Bank7 expects to finalize its acquisition of Century Financial Services by September 3, 2023, as it moves forward with a court-ordered auction process. The Oklahoma-based community bank is the approved "stalking horse bidder" for 71% of Century's shares, with a bid of $68 million, according to Bank7 CEO Tom Travis during a recent earnings call.
Auction Timeline
The court has set an expedited timeline for the bidding process, which is anticipated to open in August. Travis indicated that the auction could attract competing offers, exposing Bank7's bid to potential outbidding. He mentioned that there have been objections and motions in the receivership case, which the court is currently addressing.
Future Plans
If Bank7 successfully acquires the majority stake, its total assets would increase from $1.9 billion to $3.4 billion, marking its first entry into the New Mexico market. Travis stated that there would be a "stub period" following the acquisition, during which Bank7 plans to negotiate with the remaining 29% of Century's shareholders. He expressed confidence in reaching a favorable agreement, emphasizing that the bank has a history of conducting transactions fairly and professionally.
The outcome of this acquisition could influence Bank7's asset management and market presence, particularly in New Mexico. Investors may closely monitor the auction process for indications of competitive bidding that could affect the final purchase price. Watch for updates on the auction timeline and any competing bids in August.