Bank7 in Oklahoma City has agreed to buy a controlling stake in Century Financial Services in Santa Fe, N.M.
The $2 billion-asset Bank7 said in a press release that it plans to buy a 71% stake in the holding company for the $1.4 billion-asset Century Bank for $68 million in cash. The shares are being sold by a court-appointed receiver tied to KS StateBank v. Peters, et al., a pending case in the U.S. District Court for the District of Arizona.
The purchase agreement required Bank7 to pay a good-faith deposit of $7.25 million, which will be credited to the purchase price if the company is determined to be the successful bidder.
Bank7 agreed to serve as the “stalking horse” bidder, establishing the floor price and baseline terms for the sale. The transaction is subject to higher or otherwise better offers solicited through a bidding and auction process, for which Bank7 will have a matching right, as well as court approval.
The transaction is expected to close in the third quarter.
“The Century team members have built a solid franchise through a trusted, relationship-driven banking model that has served New Mexico communities for generations,” Thomas Travis, Bank7’s president and CEO, said in the release. “This transaction 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 and Nelson Mullins Riley & Scarborough advised Bank7.