Bank7's $68M Court-Ordered Century Buy Faces Bidding Risk

The backstory adds another layer. Peters is a prolific art dealer and real estate mogul who has borrowed millions from multiple banks and credit unions, sometimes using works by Pablo Picasso, Andrew Wyeth, and the sculptor of the Statue of Liberty as collateral, according to the Santa Fe New Mexican. How his debts grew large enough to alter two banks' trajectories is not entirely clear. Lawyers for Peters did not respond to American Banker's request for comment.

For Bank7, the deal would add a new state to its existing markets. The bank has a track record of commercial lending, and the Century deposits could fund that growth. The stalking-horse structure means Bank7 could lose the stake if another buyer tops its bid. The process also requires regulatory approvals. The expected close is the third quarter.

The price of $68 million for 71% of a bank with $1.2 billion in deposits works out to a roughly 5.7% price-to-deposits ratio, a level Race described as attractive. If completed, the deal would be accretive given the low-cost deposit base and the price paid. The uncertainty around the bidding process, however, keeps the outcome in doubt.

The next concrete marker is the court's timeline for accepting competing bids. No date has been set yet. Until then, Bank7's shareholders are betting on a deal that could still slip away.