The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Bank7 to buy neighboring bank in Oklahoma

Bank7 in Oklahoma City has agreed to buy Watonga Bancshares in Watonga, Okla. 


The $1.2 billion-asset Bank7 said in a press release Thursday that it will pay $32 million in cash for the parent of the $241 million-asset Cornerstone Bank. The deal, which is expected to close in the fourth quarter, valued Watonga at 141% of its tangible book value.

Cornerstone has three branches, $215 million of deposits and $116 million of loans.

“This addition is a great fit for Bank7, as it adds scale to our Oklahoma market and increases core funding for our continued growth,” Thomas Travis, Bank7’s CEO, said in the release. 

The deal is expected to be 7.3% accretive to Bank7’s 2022 earnings per share. It should take Bank7 three years to earn back any dilution to its tangible book value. 

Bank7 plans to cut 40% of Cornerstone’s annual noninterest expenses, or $2.6 million. It expects to incur $900,000 of merger-related expenses. 

Bank7 was advised by Keefe, Bruyette & Woods and Paul Foster Law Offices. Cornerstone was advised by D.A. Davidson and McAfee & Taft.

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