Centennial Bank: SBA business acquisition lending record
Centennial Bank (home state AR) approved 40 SBA 7(a) loans to buy existing businesses since FY2018, totaling $48.6M. The median loan was $497,250. It ranks number 201 of 280 lenders by count and made 0.1% of all SBA acquisition loans nationally.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $227,250 and $1,522,500. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Florida is the largest state (80% of loans). Loans appear in only 5 states, which points to a regional lender.
- Industry concentration. Full-Service Restaurants is 10% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 155 SBA 7(a) loans of any purpose since FY2020, totaling $127M. 75% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 10% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 11.1% charged off, 216% higher than the 3.5% national average.
Centennial Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $3.8M | $1,890,300 | |
| FY2019 | 6 | $12.1M | $875,650 | |
| FY2020 | 6 | $6.3M | $363,000 | |
| FY2021 | 13 | $12.5M | $465,000 | |
| FY2022 | 3 | $2.1M | $100,000 | |
| FY2023 | 6 | $5.6M | $769,000 | |
| FY2024 | 1 | $966K | $966,000 | |
| FY2025 | 2 | $4.1M | $2,040,000 | |
| FY2026 | 1 | $1.1M | $1,116,000 |
How often do these acquisition loans fail?
Of the 27 Centennial Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 3 have been charged off by the SBA, a rate of 11.1% by loan count and 1.4% by dollars. 10 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so Centennial Bank is 216% higher than the acquisition-loan average. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Florida | 32 | 80.0% | $36.7M | |
| 2 | Texas | 4 | 10.0% | $5.1M | |
| 3 | Arkansas | 2 | 5.0% | $1.8M | |
| 4 | New Jersey | 1 | 2.5% | $5M | |
| 5 | Tennessee | 1 | 2.5% | $117K |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 4 | 10.0% | $7.6M | |
| 2 | All Other Automotive Repair and Maintenance | 4 | 10.0% | $1.8M | |
| 3 | Glass and Glazing Contractors | 2 | 5.0% | $8.6M | |
| 4 | Recyclable Material Merchant Wholesalers | 2 | 5.0% | $4.1M | |
| 5 | Child Care Services | 2 | 5.0% | $3.3M | |
| 6 | Veterinary Services | 2 | 5.0% | $2.1M | |
| 7 | Drinking Places (Alcoholic Beverages) | 2 | 5.0% | $1.2M | |
| 8 | Beauty Salons | 2 | 5.0% | $1.2M | |
| 9 | Landscaping Services | 2 | 5.0% | $516K | |
| 10 | Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers | 1 | 2.5% | $5M |
Terms signed in the LOI shape the purchase agreement that follows.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Radiant Waxing | 2 | 5.0% | $1.2M | |
| 2 | Jersey Mike's Subs | 1 | 2.5% | $265K |
Questions buyers ask
Does Centennial Bank make SBA acquisition loans?
Yes. Centennial Bank approved 40 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 201 of 280 lenders with 25 or more such loans. The SBA file shows past approvals only; it cannot tell you whether the lender will approve a particular buyer or deal.
How large are Centennial Bank's acquisition loans?
The median was $497,250, with the middle half between $227,250 and $1,522,500. The national median is $645,250, so this lender's typical loan is 23% lower than the national figure.
Which states does Centennial Bank lend in?
Florida (32), Texas (4), Arkansas (2), New Jersey (1), Tennessee (1). Its loans appear in 5 states, so it is closer to a regional lender.
Which industries does Centennial Bank finance?
Full-Service Restaurants (4), All Other Automotive Repair and Maintenance (4), Glass and Glazing Contractors (2), Recyclable Material Merchant Wholesalers (2), Child Care Services (2). The top industry is 10% of its acquisition loans.
How have Centennial Bank's acquisition loans performed?
Of 27 loans approved FY2018 to FY2021: 11.1% charged off, 216% higher than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
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Related
- Florida acquisitions
- Texas acquisitions
- Arkansas acquisitions
- Full-Service Restaurants
- All Other Automotive Repair and Maintenance
- Glass and Glazing Contractors
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Centennial Bank.