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Bank7 Corp.

BSVN
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Business Summary

Bank7 Corp. (NASDAQ: BSVN) is a bank holding company headquartered in Oklahoma City, Oklahoma, operating through its wholly-owned subsidiary, Bank7. The company focuses on serving business owners and entrepreneurs by providing commercial and retail financial services through twelve full-service branches located in Oklahoma, Texas (specifically the Dallas/Fort Worth metropolitan area), and Kansas. As of December 31, 2025, Bank7 Corp. reported total assets of $1.96 billion , total loans of $1.61 billion , total deposits of $1.70 billion , and total shareholders’ equity of $251.0 million . The company's strategic focus is on developing deep business relationships, disciplined growth while maintaining asset quality, leveraging executive experience, achieving efficiencies through automation and repeatable processes, and investing in its people and technology.

The core business model revolves around generating revenue primarily from interest income on loans and short-term investments, with deposits from its subsidiary, Bank7, serving as the primary funding source. The company measures its performance using metrics such as return on average assets, return on average equity, earnings per share, capital ratios, and efficiency ratio. A small segment of the Bank's operations includes the production of oil, natural gas, and natural gas liquid (NGL) reserves in Texas, which was acquired in October 2023.

The Bank has a particular focus on four loan categories: commercial real estate lending (CRE), hospitality lending, energy lending, and commercial and industrial lending. While a small segment, consumer lending services are also provided for personal and household purposes, including residential real estate loans, mortgage banking services, personal lines of credit, automobile loans, and other installment loans. Deposit products offered include commercial deposit services (checking, money market, other deposit accounts) and retail deposit services (certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and ATM access).

For the fiscal year ended December 31, 2025, total interest income was $128.758 million , with interest income on loans, including fees, at $117.513 million . Total interest expense was $40.885 million , resulting in net interest income of $87.873 million . The provision for credit losses was $700,000 . Noninterest income totaled $8.503 million , comprising mortgage lending income of $1.326 million , a loss on sales, prepayments, and calls of available-for-sale debt securities of $(10) thousand , service charges on deposit accounts of $941 thousand , and other noninterest income of $6.246 million . Total noninterest expense was $38.911 million , with salaries and employee benefits being the largest component at $22.634 million . Income before taxes was $56.765 million , and income tax expense was $13.696 million , leading to a net income of $43.069 million . Basic earnings per common share were $4.56 , and diluted earnings per common share were $4.50 . The efficiency ratio for the year ended December 31, 2025, was 40.24% . As of December 31, 2025, cash and due from banks stood at $244.635 million , and total deposits were $1.70 billion . The company does not report free cash flow or total debt figures explicitly, but total liabilities were $1.712.645 billion .

Comparing 2025 to 2024, total loans increased by $209.0 million , or 15.0% , to $1.61 billion . Total deposits increased by $185.4 million , or 12.2% , to $1.70 billion . Income before taxes decreased by $3.6 million , or 6.0% , from $60.4 million in 2024 to $56.8 million in 2025. The provision for credit losses increased from $0 in 2024 to $700,000 in 2025, primarily due to the 15% year-over-year loan growth. Net interest margin decreased from 5.11% in 2024 to 4.94% in 2025, driven by a 55 basis point decrease in yields on interest-earning assets , including a 64 basis point decrease in loan yields . Interest expense on interest-bearing deposits decreased by $4.5 million , or 9.8% , due to a decrease in the cost of interest-bearing deposits from 3.98% in 2024 to 3.25% in 2025. Noninterest income decreased by $2.751 million , or 24.44% , primarily due to a $3.7 million decrease in other noninterest income, related to oil and gas asset operations. Noninterest expense increased by $1.8 million , or 4.9% , mainly due to an $1.9 million increase in salaries and employee benefits.

During the fiscal year, the company acquired proved oil and natural gas properties from HB2 Origination, LLC, on November 17, 2023, for a total purchase price of $15.1 million in cash, assuming asset retirement obligations of $0.4 million . This acquisition was treated as an asset acquisition. The company also modified eight loans for borrowers experiencing financial difficulty in 2025, with six related to a single borrower and consisting of one construction and development loan and five commercial and industrial loans, all receiving term extensions. The remaining two modifications involved one commercial real estate loan and one commercial and industrial loan, both receiving a term extension and payment delay.

Business Outlook

The company explicitly states its intention to grow organically by selectively opening additional branches in its target markets and to pursue strategic acquisitions. However, no specific revenue, margin, or EPS guidance for the upcoming period is provided in the filing.

Regarding growth areas, the company emphasizes organic growth within its current markets, particularly the Dallas/Fort Worth metropolitan area, Oklahoma City, and Tulsa. While expansion with brick-and-mortar branches will be limited, operating strategically placed branches is considered important, and the company will continue to selectively build its presence in key markets. The company currently operates twelve branches. Additionally, it intends to continually enhance its internet and mobile banking products to remain competitive in the marketplace.

In terms of operational outlook, the company constantly monitors expenditures and utilizes automation, technology, and repeatable processes to drive profitability. It operates as few branches as practical, with existing branches being smaller and more cost-efficient than traditional ones. As the company continues to grow, it expects the utilization of automation, technology, and repeatable processes to drive further efficiencies. Combining talented people with process automation is expected to enable greater scalability and consistently superior customer service. The company also actively monitors and manages the balances of maturing and repricing assets and liabilities to reduce the adverse impact of changes in interest rates.

For planned capital allocation, the company paid quarterly dividends of $0.24 per share for the first two quarters of 2025, increasing to $0.27 per share for the third and fourth quarters. It currently expects to continue quarterly dividends of $0.27 per share in the future. The Board of Directors will determine future dividends based on factors including historical and projected financial condition, liquidity, results of operations, capital levels, regulatory prohibitions, contractual restrictions, business strategy, tax considerations, acquisitions, and general economic conditions. The company has a Repurchase Plan, renewed on August 20, 2025, authorizing the repurchase of up to 750,000 shares of its stock, though no shares were repurchased under the plan during 2025. As of December 31, 2025, there were 623,504 shares available for future grants under the Bank7 Corp. 2018 Equity Incentive Plan.

The company explicitly flags several structural headwinds and execution risks to its growth plan. These include the material weakness identified in internal control over financial reporting, which could lead to material misstatements and negatively affect the stock price. The business is concentrated in and largely dependent upon the economies of Oklahoma, Texas, and Kansas, making it vulnerable to adverse economic conditions in these markets. Specific credit exposures to the energy industry (9.7% of total loans, or $156.8 million , with $72.4 million in unfunded commitments as of December 31, 2025) and the hospitality industry (19.3% of total loans, or $310.6 million , with an additional $17.8 million in unfunded debt as of December 31, 2025) are noted. A concentration in commercial real estate (Regulatory CRE representing 261.89% of total Bank capital as of December 31, 2025) could lead regulators to restrict growth. The reliance on short-term funding, with 85.7% of deposits consisting of demand, savings, money market, and NOW accounts as of December 31, 2025, and 90.0% of remaining certificates of deposit maturing within one year, exposes the company to liquidity risk if these funds cannot be replaced or retained at acceptable terms.

Risk Factors

The company faces several material risks. A material weakness in internal control over financial reporting, encompassing deposit operations, related party transactions, reconciliations, financial statement disclosures, segregation of duties, completeness and accuracy of information produced by the entity, and information technology general controls, could result in material misstatements of financial statements and adversely affect the stock price. Geographic concentration in Oklahoma, Texas, and Kansas makes the company highly susceptible to regional economic downturns, impacting loan and deposit growth, loan collectability, and problem loans. Significant credit exposure to the energy industry, representing 9.7% of total loans or $156.8 million as of December 31, 2025, and the hospitality industry, representing 19.3% of total loans or $310.6 million as of December 31, 2025, exposes the company to industry-specific downturns. A concentration in commercial real estate lending, with Regulatory CRE at 261.89% of total Bank capital as of December 31, 2025, could lead to regulatory restrictions on growth or requirements for additional capital. The loan portfolio's substantial portion maturing within one year (approximately 37% as of December 31, 2025) presents reinvestment risk if these loans are not replaced or renewed on favorable terms. Profitability is highly sensitive to changes in market interest rates, with elevated rates in prior periods compressing net interest margin. Reliance on short-term funding, with 85.7% of deposits in demand, savings, money market, and NOW accounts, and $219.2 million or 90.0% of certificates of deposit maturing within one year, creates liquidity risk. Cybersecurity risks, including "hacking" and "identity theft," are significant due to the internet-based nature of operations and reliance on third-party IT service providers. Environmental liabilities from foreclosed properties are also a concern. Inflationary pressures, although moderated, remained slightly above the Federal Reserve's target throughout 2025, potentially affecting funding costs and borrower health. Natural disasters in its concentrated market areas could directly harm operations and impair the value of the loan portfolio. Extensive regulation by federal and state agencies increases compliance costs and could limit activities, impacting earnings and growth.

Management Priorities

Management's message to shareholders emphasizes a focus on daily execution, sound credit decisions, and maintaining cost discipline as the foundation for success. Customer satisfaction is a top priority, with an aim to efficiently provide tailored banking products and services to business owners and entrepreneurs, with a goal of generating consistent growth and delivering exceptional returns to shareholders. The company also continually positions itself for future growth both organically and through strategic acquisitions. For the upcoming period, management expects to continue quarterly dividends of $0.27 per share . Strategic priorities include disciplined organic growth within current markets, selective branch expansion, and enhancing internet and mobile banking products. The company also highlights its commitment to managing expenditures and leveraging automation and technology to drive efficiencies and scalability.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Company Overview
  2. [2] Item 1, Business — Company Overview
  3. [3] Item 1, Business — Company Overview
  4. [4] Item 7, MD&A — General
  5. [5] Item 7, MD&A — 2025 Overview
  6. [6] Item 7, MD&A — 2025 Overview
  7. [7] Item 7, MD&A — General
  8. [8] Item 7, MD&A — 2025 Overview
  9. [9] Item 7, MD&A — 2025 Overview
  10. [10] Item 8, Consolidated Statements of Comprehensive Income
  11. [11] Item 8, Consolidated Statements of Comprehensive Income
  12. [12] Item 8, Consolidated Statements of Comprehensive Income
  13. [13] Item 8, Consolidated Statements of Comprehensive Income
  14. [14] Item 7, MD&A — 2025 Overview
  15. [15] Item 8, Consolidated Statements of Comprehensive Income
  16. [16] Item 8, Consolidated Statements of Comprehensive Income
  17. [17] Item 8, Consolidated Statements of Comprehensive Income
  18. [18] Item 8, Consolidated Statements of Comprehensive Income
  19. [19] Item 8, Consolidated Statements of Comprehensive Income
  20. [20] Item 8, Consolidated Statements of Comprehensive Income
  21. [21] Item 8, Consolidated Statements of Comprehensive Income
  22. [22] Item 7, MD&A — 2025 Overview
  23. [23] Item 8, Consolidated Statements of Comprehensive Income
  24. [24] Item 8, Consolidated Statements of Comprehensive Income
  25. [25] Item 8, Consolidated Statements of Comprehensive Income
  26. [26] Item 8, Consolidated Statements of Comprehensive Income
  27. [27] Item 7, MD&A — 2025 Overview
  28. [28] Item 8, Consolidated Balance Sheets
  29. [29] Item 8, Consolidated Balance Sheets
  30. [30] Item 7, MD&A — 2025 Overview
  31. [31] Item 7, MD&A — 2025 Overview
  32. [32] Item 7, MD&A — 2025 Overview
  33. [33] Item 7, MD&A — 2025 Overview
  34. [34] Item 7, MD&A — 2025 Overview
  35. [35] Item 7, MD&A — 2025 Overview
  36. [36] Item 7, MD&A — 2025 Overview
  37. [37] Item 7, MD&A — 2025 Overview
  38. [38] Item 7, MD&A — Net Interest Margin
  39. [39] Item 7, MD&A — Net Interest Margin
  40. [40] Item 7, MD&A — Net Interest Income and Net Interest Margin
  41. [41] Item 7, MD&A — Net Interest Income and Net Interest Margin
  42. [42] Item 7, MD&A — Net Interest Income and Net Interest Margin
  43. [43] Item 7, MD&A — Net Interest Income and Net Interest Margin
  44. [44] Item 7, MD&A — Net Interest Income and Net Interest Margin
  45. [45] Item 7, MD&A — Net Interest Income and Net Interest Margin
  46. [46] Item 7, MD&A — Noninterest Income
  47. [47] Item 7, MD&A — Noninterest Income
  48. [48] Item 7, MD&A — Noninterest Income
  49. [49] Item 7, MD&A — Noninterest Expense
  50. [50] Item 7, MD&A — Noninterest Expense
  51. [51] Item 7, MD&A — Noninterest Expense
  52. [52] Item 2, Notes to Consolidated Financial Statements — Recent Events, Including Mergers and Acquisitions
  53. [53] Item 2, Notes to Consolidated Financial Statements — Recent Events, Including Mergers and Acquisitions
  54. [54] Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
  55. [55] Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
  56. [56] Item 12, Notes to Consolidated Financial Statements — Shareholders’ Equity
  57. [57] Item 14, Notes to Consolidated Financial Statements — Employee Benefits
  58. [58] Item 1A, Risk Factors — We have credit exposure to the energy industry.
  59. [59] Item 1A, Risk Factors — We have credit exposure to the energy industry.
  60. [60] Item 1A, Risk Factors — We have credit exposure to the energy industry.
  61. [61] Item 1A, Risk Factors — We have credit exposure to the hospitality industry.
  62. [62] Item 1A, Risk Factors — We have credit exposure to the hospitality industry.
  63. [63] Item 1A, Risk Factors — We have credit exposure to the hospitality industry.
  64. [64] Item 1A, Risk Factors — We have a concentration in commercial real estate lending that could cause our regulators to restrict our ability to grow.
  65. [65] Item 1A, Risk Factors — We rely on short-term funding, which can be adversely affected by local and general economic conditions.
  66. [66] Item 1A, Risk Factors — We rely on short-term funding, which can be adversely affected by local and general economic conditions.
  67. [67] Item 1A, Risk Factors — A substantial portion of our loan portfolio consists of loans maturing within one year, and there is no guarantee that these loans will be replaced upon maturity or renewed on the same terms or at all.
  68. [68] Item 1A, Risk Factors — We rely on short-term funding, which can be adversely affected by local and general economic conditions.

Analysis on 5/20/2026