Bank7 Puts Q4 2026 Loan Beta at 65% to 70% if Rates Rise

Bank7 expects its legacy loan beta to reach 65% to 70% in Q4 2026 if interest rates rise, above the level near 60% for the portfolio in Q3. The conditional estimate comes as the Oklahoma City-based bank prepares to merge with Century Financial Services Corporation.

Bank7 put its legacy deposit beta at about 52% in Q3. The bank said its Q4 deposit beta was harder to project, but its working assumption was that the figure would be lower.

Bank7 currently expects the Century deal to have a neutral effect on net interest margin. It plans to sell some or all of Century’s bonds, and the effect on margin could depend on when those sales occur. Century’s lower-cost deposits could help Bank7 maintain its margin after the merger, though that benefit may diminish as the funds are redeployed.

The merger is expected to close on or about Nov. 1, 2026, subject to remaining conditions. The timeline was also covered in Bank7’s third-quarter results coverage.