Bank7 Corp. Announces Q1 2025 Earnings

Rhea-AI Summary

Bank7 Corp. (NASDAQ: BSVN) reported Q1 2025 financial results with net income of $10.3 million, down 8.43% from $11.3 million in Q1 2024. Earnings per share decreased 10.74% to $1.08 from $1.21 year-over-year.

Key metrics include:

• Total assets remained stable at $1.8 billion (0.59% increase)
• Total loans grew 3.63% to $1.4 billion
• Total interest income declined 8.56% to $30.4 million
• Net interest margin decreased to 4.98% from 5.14%

The bank maintains strong capital positions with Tier 1 leverage ratio of 12.39%, Tier 1 risk-based capital ratio of 14.02%, and total risk-based capital ratio of 15.24%, all significantly above 'well-capitalized' regulatory requirements.

Positive

• Strong capital ratios well above regulatory requirements
• Loan portfolio growth of 3.63% year-over-year
• Healthy net interest margin of 4.98%

Negative

• Net income decreased 8.43% to $10.3 million
• Earnings per share declined 10.74% to $1.08
• Total interest income fell 8.56% to $30.4 million
• Net interest margin contracted from 5.14% to 4.98%

Insights

Financial Analyst

Bank7 Corp's Q1 2025 earnings show mixed results with some concerning trends. While the bank remains profitable and well-capitalized, several key performance metrics show year-over-year deterioration. Net income fell 8.43% to $10.3 million, with EPS declining 10.74% to $1.08. This profit decline occurred despite a 3.63% increase in total loans, suggesting margin compression.

The net interest margin contracted to 4.98% from 5.14% year-over-year, confirming pressure on the bank's core earnings capability. Total interest income dropped 8.56% to $30.4 million, outpacing the reduction in interest expense. This indicates the bank is generating less revenue from its interest-earning assets despite modest balance sheet growth.

From a capital perspective, Bank7 maintains excellent strength with consolidated Tier 1 leverage ratio at 12.39% and total risk-based capital at 15.24% - significantly above regulatory minimums. This strong capital position provides a substantial buffer against economic uncertainty, which management specifically cited as a concern.

The efficiency ratio remains favorable with controlled noninterest expenses of $8.88 million, down slightly year-over-year. However, noninterest income also declined 12.5% to $1.76 million, further constraining revenue diversity.

While management characterizes 2025 as starting strongly, the financial metrics suggest Bank7 is experiencing modest profitability headwinds despite maintaining excellent capital ratios and asset quality. The bank appears well-positioned to navigate economic volatility but investors should monitor the declining interest margin and profitability metrics in coming quarters.

OKLAHOMA CITY, April 10, 2025 /PRNewswire/ -- Bank7 Corp. (NASDAQ: BSVN) ("the Company"), the parent company of Oklahoma City-based Bank7 (the "Bank"), today reported unaudited results for the quarter ended March 31, 2025.  "2025 is off to a strong start, as evidenced by outstanding earnings, liquidity, credit quality metrics, and a properly matched balance sheet.  We are focused on potential disruptions related to economic policies and market volatility, yet we take comfort that we are located in such a dynamic and resilient part of the United States.  We are prepared to navigate through the volatility and continue to rapidly build capital which is a true source of our strength and stability," said Thomas L. Travis, President and CEO of the Company.

For the three months ended March 31, 2025 compared to the three months ended March 31, 2024:

• Net income of $10.3 million compared to $11.3 million, a decrease of 8.43%
• Earnings per share of $1.08 compared to $1.21, a decrease of 10.74%
• Total assets of $1.8 billion compared to $1.8 billion, an increase of 0.59%
• Total loans of $1.4 billion compared to $1.4 billion, an increase of 3.63%
• PPE of $13.7 million compared to $14.9 million, a decrease of 7.86%
• Total interest income of $30.4 million compared to $33.3 million, a decrease of 8.56%

Both the Bank's and the Company's capital levels continue to be significantly above the minimum levels required to be designated as "well-capitalized" for regulatory purposes.  On March 31, 2025, the Bank's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 12.39%, 14.03%, and 15.25%, respectively.  On March 31, 2025, on a consolidated basis, the Company's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 12.39%, 14.02%, and 15.24%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators. 

Non-GAAP Financial Measures:
This earnings release contains the non-GAAP financial measure pre-provision pre-tax earnings ("PPE").  The Company's management uses this non-GAAP measure in their analysis of the Company's performance.  This measure adjusts GAAP performance to exclude from net income, income tax expense, provision for credit losses, and loss on sales and calls of available-for-sale debt securities.

					For the Three Months Ended
					March 31, 2025		March 31, 2024
Calculation of Pre-Provision Pre-Tax Earnings ("PPE")					(Dollars in thousands)
Net Income					$         10,336		$            11,288
Income Tax Expense					3,377		3,595
Pre-tax net income					13,713		14,883
Add back: Provision for credit losses					-		-
Add back: (Gain)Loss on sales/calls of AFS debt securities					-		-
Pre-provision pre-tax earnings					13,713		14,883

 

Bank7 Corp.
Consolidated Balance Sheets
Assets	March 31, 2025 (unaudited)		December 31, 2024
Cash and due from banks	$               240,570		$               234,196
Interest-bearing time deposits in other banks	12,947		6,719
Available-for-sale debt securities	59,616		59,941
Loans, net of allowance for credit losses of $18,162 and
$17,918 at March 31, 2025 and December 31, 2024, respectively	1,405,649		1,379,465
Loans held for sale, at fair value	2,068		-
Premises and equipment, net	20,721		18,137
Nonmarketable equity securities	1,318		1,283
Core deposit intangibles	846		878
Goodwill	11,208		8,458
Interest receivable and other assets	30,531		30,731
Total assets	$            1,785,474		$            1,739,808
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing	$               327,522		$               313,258
Interest-bearing	1,223,768		1,202,213
Total deposits	1,551,290		1,515,471
Income taxes payable	3,565		77
Interest payable and other liabilities	8,959		11,047
Total liabilities	1,563,814		1,526,595
Shareholders' equity
Common stock, $0.01 par value; 50,000,000 shares authorized; shares
issued and outstanding: 9,448,237 and 9,390,211 at March 31, 2025
and December 31, 2024, respectively	94		94
Additional paid-in capital	101,546		101,809
Retained earnings	124,349		116,281
Accumulated other comprehensive loss	(4,329)		(4,971)
Total shareholders' equity	221,660		213,213
Total liabilities and shareholders' equity	$            1,785,474		$            1,739,808

 

		Three Months Ended
		March 31,
		2025 (unaudited)		2024 (unaudited)
Interest Income
Loans, including fees		$          27,324		$          30,117
Interest-bearing time deposits in other banks		101		253
Debt securities, taxable		283		1,012
Debt securities, tax-exempt		63		73
Other interest and dividend income		2,667		1,832
Total interest income		30,438		33,287
Interest Expense
Deposits		9,600		11,277
Total interest expense		9,600		11,277
Net Interest Income		20,838		22,010
Provision for Credit Losses		-		-
Net Interest Income After Provision for Credit Losses		20,838		22,010
Noninterest Income
Mortgage lending income		93		51
Loss on sales, prepayments, and calls of available-for-sale debt securities		-		-
Service charges on deposit accounts		218		249
Other		1,446		1,708
Total noninterest income		1,757		2,008
Noninterest Expense
Salaries and employee benefits		5,280		5,289
Furniture and equipment		250		230
Occupancy		592		661
Data and item processing		510		458
Accounting, marketing and legal fees		105		99
Regulatory assessments		83		386
Advertsing and public relations		194		145
Travel, lodging and entertainment		56		51
Other		1,812		1,816
Total noninterest expense		8,882		9,135
Income Before Taxes		13,713		14,883
Income tax expense		3,377		3,595
Net Income		$          10,336		$          11,288
Earnings per common share - basic		$              1.10		$              1.22
Earnings per common share - diluted		1.08		1.21
Weighted average common shares outstanding - basic		9,421,534		9,220,154
Weighted average common shares outstanding - diluted		9,552,273		9,317,813
Other comprehensive income (loss)
Unrealized gains on securities, net of tax (expense) benefit of ($237) and $0
for the three months ended March 31, 2025 and 2024, respectively		$               642		$               456
Reclassification adjustment for realized losses included in net income net of tax of $0 and $0
for the three months March 31, 2025 and 2024, respectively		-		-
Other comprehensive income (loss)		$               642		$               456
Comprehensive Income		$          10,978		$          11,744

 

		Net Interest Margin
		For the Three Months Ended March 31,
		2025 (unaudited)						2024 (unaudited)
		Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
		(Dollars in thousands)
Interest-Earning Assets:
Short-term investments		$        238,048		$        2,768		4.72 %		$        176,072		$        2,085		4.75 %
Debt securities, taxable-equivalent		48,637		283		2.36		153,468		1,012		2.64
Debt securities, tax exempt		12,514		63		2.04		18,269		73		1.60
Loans held for sale		580		-		-		238		-		-
Total loans(1)		1,398,350		27,324		7.92		1,369,692		30,117		8.82
Total interest-earning assets		1,698,129		30,438		7.27		1,717,739		33,287		7.77
Noninterest-earning assets		39,957						39,769
Total assets		$     1,738,086						$     1,757,508
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$        956,891		7,118		3.02 %		$        845,129		8,196		3.89 %
Time deposits		236,325		2,482		4.26		264,973		3,081		4.66
Total interest-bearing deposits		1,193,216		9,600		3.26		1,110,102		11,277		4.07
Total interest-bearing liabilities		$     1,193,216		9,600		3.26		$     1,110,102		11,277		4.07
Noninterest-bearing liabilities:
Noninterest-bearing deposits		$        316,544						$        460,028
Other noninterest-bearing liabilities		9,983						11,657
Total noninterest-bearing liabilities		326,527						471,685
Shareholders' equity		218,343						175,721
Total liabilities and shareholders' equity		$     1,738,086						$     1,757,508
Net interest income				$      20,838						$      22,010
Net interest spread						4.01 %						3.70 %
Net interest margin						4.98 %						5.14 %

(1)	Nonaccrual loans are included in total loans

 

About Bank7 Corp. 

We are Bank7 Corp., a bank holding company headquartered in Oklahoma City, Oklahoma. Through our wholly-owned subsidiary, Bank7, we operate twelve locations in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area and Kansas. We are focused on serving business owners and entrepreneurs by delivering fast, consistent and well-designed loan and deposit products to meet their financing needs. We intend to grow organically by selectively opening additional branches in our target markets as well as pursue strategic acquisitions.

Conference Call

Bank7 Corp. has scheduled a conference call to discuss its first quarter results, which will be broadcast live over the Internet, on Thursday, April 10, 2025 at 9:00 a.m. central standard time. To participate in the call, dial 1-888-348-6421, or access it live over the Internet at https://app.webinar.net/7y80d7DmL4j. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/7y80d7DmL4j shortly after the call for 1 year.

Cautionary Statements Regarding Forward-Looking Information

This communication contains a number of forward-looking statements. These forward-looking statements reflect Bank7 Corp.'s current views with respect to, among other things, future events and Bank7 Corp.'s financial performance. Any statements about Bank7 Corp.'s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "believes," "can," "could," "may," "predicts," "potential," "should," "will," "estimate," "plans," "projects," "continuing," "ongoing," "expects," "intends" and similar words or phrases. Any or all of the forward-looking statements in (or conveyed orally regarding) this presentation may turn out to be inaccurate. The inclusion of or reference to forward-looking information in this presentation should not be regarded as a representation by Bank7 Corp. or any other person that the future plans, estimates or expectations contemplated by Bank7 Corp. will be achieved.

These forward-looking statements are subject to significant uncertainties because they are based upon:  the amount and timing of future changes in interest rates, market behavior, and other economic conditions; future laws, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters.  These other matters include, among other things, the impact the direct and indirect effect of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators.  Bank7 Corp. has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that Bank7 Corp. believes may affect its financial condition, results of operations, business strategy and financial needs. Bank7 Corp.'s actual results could differ materially from those anticipated in such forward-looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. If one or more events related to these or other risks or uncertainties materialize, or if Bank7 Corp.'s underlying assumptions prove to be incorrect, actual results may differ materially from what Bank7 Corp. anticipates. You are cautioned not to place undue reliance on forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made and Bank7 Corp. undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as may be required by law. All forward-looking statements herein are qualified by these cautionary statements.

Contact:

Thomas Travis
President & CEO
(405) 810-8600

 

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SOURCE Bank7 Corp.

FAQ

What was Bank7 Corp's (BSVN) earnings per share in Q1 2025?

BSVN reported earnings per share of $1.08 in Q1 2025, down 10.74% from $1.21 in Q1 2024.

How much did Bank7 Corp's (BSVN) loan portfolio grow in Q1 2025?

BSVN's total loans increased by 3.63% to $1.4 billion compared to Q1 2024.

What is Bank7 Corp's (BSVN) net interest margin for Q1 2025?

BSVN's net interest margin was 4.98% in Q1 2025, down from 5.14% in Q1 2024.

How strong is Bank7 Corp's (BSVN) capital position in Q1 2025?

BSVN maintains strong capital ratios with Tier 1 leverage ratio at 12.39%, Tier 1 risk-based capital ratio at 14.02%, and total risk-based capital ratio at 15.24%.

What was Bank7 Corp's (BSVN) total interest income in Q1 2025?

BSVN's total interest income was $30.4 million in Q1 2025, an 8.56% decrease from $33.3 million in Q1 2024.