NewsHK
Deposit funding and lending scale are driving consolidation among Southwest community banks.
(BSVN) has agreed to acquire Century Financial Services Corp., a deal its investor presentation says would create a $3.3 billion bank spanning Texas, New Mexico, Oklahoma, and Kansas.
The transaction's capital logic centers on deposits.
Century brings $1.2 billion in core deposits to the combined franchise, and the two banks together carry a cost of funds of 1.6 percent, a level BSVN's presentation places in the top quartile of peers.
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