Bank7 Corp Acquires Century Bank After Default Sale

Bank7 Corp has secured a deal to purchase a 71 percent stake in the Santa Fe based Century Financial Services Corp. The transaction follows a default by Century owner Gerald Peters on personal loans, which led to a federal court receiver auctioning off his shares. Bank7 emerged as the winner with a final bid of 89 million dollars.

While Century Bank is not in bankruptcy, the forced sale of the owner's pledged stock necessitated this acquisition. The deal is expected to close in the fourth quarter of this year, pending final approval from bank regulators. Bank7 stated that it intends to keep the Century Bank branding for its existing nine branches and two loan offices.

This merger will combine Bank7's 1.9 billion dollars in assets with Century Bank's 1.36 billion dollars. The resulting entity will hold approximately 3.4 billion dollars in total assets. This move highlights how private loan defaults can lead to major structural changes within the regional banking sector.