Bank7 Wins Shareholder Approval for Century Deal
Net income recovered to $10.20 million in the third quarter as loans still grew despite payoffs.
Bank7 Corp. (BSVN), the Oklahoma City-based community bank holding company, said Century Financial shareholders approved the pending acquisition after regulatory clearances, with the deal expected to close on November 1, 2026.
The transaction, valued at about $137 million, would extend the franchise into New Mexico and add roughly $1.2 billion of legacy deposits. The company said the combined organization would have about $3.3 billion in assets, with projected EPS accretion of 25% or more. President and CEO Thomas L. Travis said the merger would let Bank7’s model leverage Century’s core deposits for a highly accretive impact on earnings.
The quarter also reversed a second-quarter earnings drop. Net income was $10.20 million, or $1.06 a share, up 22.25% from $8.35 million, or $0.87 a share, in the three months ended June 30. Pre-provision pre-tax earnings rose to $13.62 million from $11.02 million. Core pre-provision pre-tax earnings were $14.31 million and core EPS was $1.11.
Total loans were $1.63 billion, up 2.22% sequentially, after a 6.68% year-over-year rise in the second quarter. Travis said the company was pleased with growth in the loan book despite significant payoffs and a healthy pipeline of new loans. Total assets were $2.01 billion.
Net interest income declined to $22.30 million from $23.03 million. Deposit interest expense fell to $9.63 million from $10.69 million. Net interest margin compressed to 4.77% from 5.07%, and the net interest spread narrowed to 3.90% from 4.10%. Average loan yield fell to 7.46% from 8.11%, while the interest-bearing deposit rate declined to 2.93% from 3.33%. Average loans were $1.57 billion. NIM excluding loan fee income was 4.38%.
The provision for credit losses was zero, versus $700 thousand in the prior quarter. Credit metrics remained tight: net charge-offs of 4 bps, nonperforming assets of 0.45% of total loans, the allowance covering 260.80% of nonperforming loans, and the allowance at 1.19% of total loans.
Noninterest income fell to $1.07 million from $2.21 million, with other noninterest income down to $347 thousand from $1.58 million. Noninterest expense declined to $9.76 million from $10.35 million, including other expense of $915 thousand versus $2.20 million.
Capital stayed well above well-capitalized minimums. On September 30, the company’s Tier 1 leverage ratio was 14.12%, Tier 1 risk-based capital was 15.17%, and total risk-based capital was 16.30%. Tier 1 leverage had been 13.88% on June 30.
The company operates twelve locations in Oklahoma, the Dallas/Fort Worth area and Kansas, focused on business owners and entrepreneurs. It intends to grow organically by selectively opening additional branches and to pursue strategic acquisitions.
Travis said the company continues to benefit from high capital levels, robust liquidity, a strong net interest margin, and excellent credit quality, supported by a properly matched balance sheet and its position in dynamic markets. The company has no debt and no held-to-maturity securities, and the dividend payout ratio was 24.8%.
The pending Century close is the next step in that expansion. Management framed the deal as a way to put the existing commercial-banking model to work on a larger deposit base in New Mexico, with the combined balance sheet at about $3.3 billion and the accretion case at 25% or more on earnings per share.