OKLAHOMA CITY, Aug. 25, 2025 /PRNewswire/ -- Bank7 Corp. (NASDAQ: BSVN), the parent company of Oklahoma City-based Bank7 (the "Company"), is pleased to announce that its board of directors has authorized a renewal of the Company's existing stock repurchase program for a term of two (2) years. The stock repurchase plan provides for the purchase of up to 750,000 shares of the Company's outstanding common stock. There are currently 750,000 shares available to be repurchased under the repurchase plan.Thomas L. ...

Core Insights - Equity markets have experienced volatility in August after a strong performance since mid-June, influenced by tariff policies and inflationary pressures [1] - Investors are advised to focus on stocks with a history of steady dividend payouts to protect their portfolios during market fluctuations [2] Investment Opportunities - Four small and mid-cap banks have recently announced dividend increases: Bank7 Corp. (BSVN), Unity Bancorp, Inc. (UNTY), Stock Yards Bancorp, Inc. (SYBT), and BayCom Corp (BCML) [3] - These banks have consistently raised their quarterly dividends, contributing to enhanced shareholder value, with stock prices increasing over 15% in the past year [3] Company Summaries - **Bank7 Corp. (BSVN)**: - Operates in Oklahoma, Texas, and Kansas with $1.83 billion in assets as of June 30, 2025 [7] - Announced a quarterly cash dividend of $0.27 per share, a 12.5% increase, with a forward dividend yield of 2.33% and a payout ratio of 21% [8] - Expected sales decline of 2.4% and earnings decrease of 13.4% in 2025 [9] - **Unity Bancorp, Inc. (UNTY)**: - Based in New Jersey with $2.93 billion in assets as of June 30, 2025 [11] - Increased its quarterly cash dividend to $0.15 per share, a 7.1% rise, with a forward dividend yield of 1.24% and a payout ratio of 12% [12] - Projected sales growth of 16.5% and earnings growth of 20.9% in 2025 [12] - **Stock Yards Bancorp, Inc. (SYBT)**: - Headquartered in Louisville, KY, providing services in Kentucky, Indiana, and Ohio [13] - Announced a dividend of $0.32 per share, a 3.2% increase, with a forward dividend yield of 1.66% and a payout ratio of 29% [14] - Anticipated sales growth of 11.1% and earnings growth of 17.2% in 2025 [14] - **BayCom Corp (BCML)**: - Operates through United Business Bank with $2.62 billion in assets as of June 30, 2025 [15] - Increased its quarterly cash dividend to $0.25 per share, a 25% rise, with a forward dividend yield of 3.53% and a payout ratio of 37% [16] - Expected sales growth of 3.6% and earnings growth of 5.2% in 2025 [17]

OKLAHOMA CITY, Aug. 21, 2025 /PRNewswire/ -- Bank7 Corp. (NASDAQ: BSVN), the parent company of Oklahoma City-based Bank7 (the "Company"), is pleased to announce that its Board of Directors has declared an increase to its quarterly cash dividend to $0.27 per common share from the current $0.24 per common share. This dividend represents a 12.50% increase to the current dividend and is the sixth consecutive annual increase in BSVN's quarterly cash dividend. The dividend will be paid on October 7, 2025 to share ...

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides Bank7 Corp.'s unaudited condensed consolidated financial statements and management's discussion for the periods ended June 30, 2025 [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents Bank7 Corp.'s unaudited condensed consolidated financial statements and detailed notes for the periods ended June 30, 2025, and December 31, 2024 [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows an increase in total assets to **$1.84 billion** as of June 30, 2025, from **$1.74 billion** at December 31, 2024, primarily driven by growth in loans Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------- | | Total Assets | $1,836,346 | $1,739,808 | $96,538 | 5.55% | | Loans, net | $1,479,134 | $1,379,465 | $99,669 | 7.22% | | Total Deposits | $1,594,138 | $1,515,471 | $78,667 | 5.19% | | Total Liabilities | $1,604,487 | $1,526,595 | $77,892 | 5.10% | | Total Shareholders' Equity | $231,859 | $213,213 | $18,646 | 8.75% | [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Net income decreased for both the three and six months ended June 30, 2025, compared to the prior year, primarily due to lower interest and noninterest income Condensed Consolidated Statements of Comprehensive Income Highlights (in thousands, except per share data) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | % Change | | :-------------------- | :----------------------------- | :----------------------------- | :----- | :------- | | Total Interest Income | $31,781 | $32,436 | $(655) | -2.02% | | Total Interest Expense | $10,043 | $11,204 | $(1,161) | -10.36% | | Net Interest Income | $21,738 | $21,232 | $506 | 2.38% | | Total Noninterest Income | $2,701 | $3,165 | $(464) | -14.66% | | Total Noninterest Expense | $9,732 | $9,142 | $590 | 6.45% | | Net Income | $11,105 | $11,524 | $(419) | -3.64% | | Basic EPS | $1.18 | $1.25 | $(0.07) | -5.60% | | Diluted EPS | $1.16 | $1.23 | $(0.07) | -5.69% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | % Change | | :-------------------- | :----------------------------- | :----------------------------- | :----- | :------- | | Total Interest Income | $62,223 | $65,723 | $(3,500) | -5.33% | | Total Interest Expense | $19,643 | $22,481 | $(2,838) | -12.62% | | Net Interest Income | $42,580 | $43,242 | $(662) | -1.53% | | Total Noninterest Income | $4,456 | $5,174 | $(718) | -13.88% | | Total Noninterest Expense | $18,616 | $18,278 | $338 | 1.85% | | Net Income | $21,441 | $22,812 | $(1,371) | -6.01% | | Basic EPS | $2.27 | $2.47 | $(0.20) | -8.10% | | Diluted EPS | $2.25 | $2.44 | $(0.19) | -7.79% | [Unaudited Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity increased to **$231.9 million** at June 30, 2025, from **$213.2 million** at December 31, 2024, driven by net income and paid-in capital Condensed Consolidated Statements of Shareholders' Equity Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | % Change | | :-------------------- | :------------ | :---------------- | :----- | :------- | | Total Shareholders' Equity | $231,859 | $213,213 | $18,646 | 8.75% | | Retained Earnings (6 months) | $133,186 | $116,281 | $16,905 | 14.54% | | Additional Paid-in Capital (6 months) | $102,321 | $101,809 | $512 | 0.50% | | Cash dividends declared (6 months) | $(4,536) | $(3,883) | $(653) | 16.82% | [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased, while investing activities shifted to using cash, resulting in a net decrease in cash for the six months ended June 30, 2025 Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | % Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :----- | :------- | | Net cash provided by operating activities | $20,448 | $28,592 | $(8,144) | -28.48% | | Net cash (used in) provided by investing activities | $(109,048) | $114,503 | $(223,551) | -195.24% | | Net cash provided by (used in) financing activities | $73,243 | $(114,032) | $187,275 | 164.23% | | Net (Decrease) Increase in Cash and Due from Banks | $(15,357) | $29,063 | $(44,420) | -152.84% | | Cash and Due from Banks, End of Period | $218,839 | $210,105 | $8,734 | 4.16% | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section details the Company's accounting policies, recent events, earnings per share, debt, loans, equity, related-party transactions, and fair value measurements - The company is a bank holding company operating through its wholly-owned subsidiary, Bank7, providing banking and financial services in Oklahoma, Texas, and Kansas[17](index=17&type=chunk) - The financial statements are unaudited and reflect management's necessary adjustments for fair presentation[18](index=18&type=chunk) - The company operates as a single reportable segment, the Bank, with net income and total assets as key performance measures[20](index=20&type=chunk) [Note 1: Nature of Operations and Summary of Significant Accounting Policies](index=8&type=section&id=Note%201%3A%20Nature%20of%20Operations%20and%20Summary%20of%20Significant%20Accounting%20Policies) Bank7 Corp. operates as a bank holding company, with financial statements reflecting unaudited consolidated results and key accounting estimates - Bank7 Corp. is a bank holding company, owning and managing Bank7, which offers banking and financial services in Oklahoma, Texas, and Kansas[17](index=17&type=chunk) - The financial statements are unaudited, include all necessary adjustments, and reflect no significant changes in accounting policies since December 31, 2024[18](index=18&type=chunk) - The consolidated financial statements include the Company, the Bank, and its three subsidiaries: 1039 NW 63rd, LLC (real estate), Giddings Production, LLC (oil/natural gas), and First American Mortgage LLC (residential mortgages)[19](index=19&type=chunk) - The Company operates as a single reportable segment (the Bank), with the CEO evaluating performance on a company-wide basis using net income and total assets as key measures[20](index=20&type=chunk) - Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, income taxes, goodwill and intangibles, and fair values of financial instruments[22](index=22&type=chunk) [Note 2: Recent Events, Including Mergers and Acquisitions](index=9&type=section&id=Note%202%3A%20Recent%20Events%2C%20Including%20Mergers%20and%20Acquisitions) The Company acquired oil and natural gas properties in November 2023, with related revenues decreasing in Q2 2025 compared to Q2 2024 - On November 17, 2023, the Company acquired proven oil and natural gas properties from HB2 Origination, LLC for **$15.1 million** in cash, assuming **$0.4 million** in asset retirement obligations[27](index=27&type=chunk) - Oil and gas related revenues (included in "Other" noninterest income) were **$1.6 million** for Q2 2025, down from **$2.4 million** for Q2 2024 (**-33.3%**)[29](index=29&type=chunk) - Oil and gas related revenues (included in "Other" noninterest income) were **$2.7 million** for the six months ended June 30, 2025, down from **$3.8 million** for the same period in 2024 (**-28.9%**)[31](index=31&type=chunk) [Note 3: Earnings per Share](index=10&type=section&id=Note%203%3A%20Earnings%20per%20Share) Basic and diluted earnings per share decreased for both the three and six months ended June 30, 2025, compared to the prior year Earnings per Common Share (in thousands, except per share amounts) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | % Change | | :----------------------------------- | :----------------------------- | :----------------------------- | :----- | :------- | | Net Income (in thousands) | $11,105 | $11,524 | $(419) | -3.64% | | Basic EPS | $1.18 | $1.25 | $(0.07) | -5.60% | | Diluted EPS | $1.16 | $1.23 | $(0.07) | -5.69% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | % Change | | :----------------------------------- | :----------------------------- | :----------------------------- | :----- | :------- | | Net Income (in thousands) | $21,441 | $22,812 | $(1,371) | -6.01% | | Basic EPS | $2.27 | $2.47 | $(0.20) | -8.10% | | Diluted EPS | $2.25 | $2.44 | $(0.19) | -7.79% | [Note 4: Debt Securities](index=11&type=section&id=Note%204%3A%20Debt%20Securities) Available-for-sale debt securities saw a decrease in fair value and amortized cost, with unrealized losses attributed to market interest rate increases Available-for-Sale Debt Securities (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | % Change | | :-------------------- | :------------ | :---------------- | :----- | :------- | | Amortized Cost | $62,027 | $66,445 | $(4,418) | -6.65% | | Fair Value | $57,170 | $59,941 | $(2,771) | -4.62% | | Gross Unrealized Losses | $(4,857) | $(6,504) | $1,647 | -25.32% | - The Company had no realized gains or losses from the sale, prepayment, or call of debt securities for the three and six months ended June 30, 2025 and 2024[44](index=44&type=chunk) - All unrealized losses are due to increases in market interest rates and are expected to recover as securities approach maturity, with no impairment loss recognized[46](index=46&type=chunk) [Note 5: Loans and Allowance for Credit Losses](index=14&type=section&id=Note%205%3A%20Loans%20and%20Allowance%20for%20Credit%20Losses) Gross loans increased, while the allowance for credit losses saw net recoveries for the six months ended June 30, 2025 Loan Portfolio and Allowance for Credit Losses (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | % Change | | :-------------------- | :------------ | :---------------- | :----- | :------- | | Gross loans | $1,500,059 | $1,399,293 | $100,766 | 7.20% | | Allowance for credit losses | $18,222 | $17,918 | $304 | 1.70% | | Net loans | $1,479,134 | $1,379,465 | $99,669 | 7.22% | - For the six months ended June 30, 2025, net recoveries were **$304,000**, a significant improvement from net charge-offs of **$1.919 million** in the prior year period[55](index=55&type=chunk) - During the six months ended June 30, 2025, the Company modified eight loans for borrowers experiencing financial difficulty, totaling **$1.3 million** for construction and development, **$2.7 million** for commercial real estate, and **$4.3 million** for commercial and industrial loans, primarily through term extensions[85](index=85&type=chunk)[86](index=86&type=chunk) [Note 6: Shareholders' Equity](index=26&type=section&id=Note%206%3A%20Shareholders'%20Equity) Total shareholders' equity increased, and the Company and Bank exceeded all minimum capital adequacy requirements under Basel III Total Shareholders' Equity (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | % Change | | :-------------------- | :------------ | :---------------- | :----- | :------- | | Total Shareholders' Equity | $231,859 | $213,213 | $18,646 | 8.75% | - The Company adopted a repurchase plan in October 2023 authorizing up to **750,000 shares**, with no repurchases made as of June 30, 2025[88](index=88&type=chunk)[89](index=89&type=chunk) - As of June 30, 2025, both the Company and Bank exceeded all minimum capital adequacy requirements under Basel III Capital Rules, with the Bank categorized as "well capitalized"[90](index=90&type=chunk)[91](index=91&type=chunk)[99](index=99&type=chunk) [Note 7: Related-Party Transactions](index=28&type=section&id=Note%207%3A%20Related-Party%20Transactions) No outstanding loans to related parties were reported, but lease payments to related parties increased for Q2 2025 - No loans outstanding to executive officers, directors, significant shareholders, and their affiliates as of June 30, 2025, and December 31, 2024[100](index=100&type=chunk) - Lease payments to related parties for office space totaled **$82,000** for Q2 2025, up from **$65,000** for Q2 2024 (**+26.15%**)[101](index=101&type=chunk) [Note 8: Employee Benefits](index=29&type=section&id=Note%208%3A%20Employee%20Benefits) Employer contributions to the 401(k) plan and stock-based compensation expense both increased for Q2 2025 - Employer contributions to the 401(k) plan were **$133,000** for Q2 2025, up from **$124,000** for Q2 2024 (**+7.26%**)[104](index=104&type=chunk) - Stock-based compensation expense was **$762,000** for Q2 2025, up from **$637,000** for Q2 2024 (**+19.62%**)[105](index=105&type=chunk) - As of June 30, 2025, there were **660,743 shares** available for future grants under the Bank7 Corp. 2018 Equity Incentive Plan[105](index=105&type=chunk) [Note 9: Disclosures About Fair Value of Assets and Liabilities](index=31&type=section&id=Note%209%3A%20Disclosures%20About%20Fair%20Value%20of%20Assets%20and%20Liabilities) Fair value measurements are categorized into three levels, with available-for-sale debt securities using Level 2 inputs and no nonrecurring fair value assets at June 30, 2025 - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1 prices), and Level 3 (unobservable inputs)[117](index=117&type=chunk) - Available-for-sale debt securities are reported at fair value using Level 2 inputs, obtained from an independent pricing service[115](index=115&type=chunk) - There were no assets measured at fair value on a nonrecurring basis at June 30, 2025, compared to **$3.2 million** in collateral-dependent loans (Level 3) at December 31, 2024[119](index=119&type=chunk)[124](index=124&type=chunk) [Note 10: Financial Instruments with Off-Balance Sheet Risk](index=35&type=section&id=Note%2010%3A%20Financial%20Instruments%20with%20Off-Balance%20Sheet%20Risk) Off-balance sheet commitments, primarily for credit extensions and standby letters, slightly decreased overall from December 31, 2024 Off-Balance Sheet Commitments (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | % Change | | :----------------------------------- | :------------ | :---------------- | :----- | :------- | | Commitments to extend credit | $263,846 | $272,261 | $(8,415) | -3.09% | | Financial and performance standby letters of credit | $16,940 | $11,333 | $5,607 | 49.48% | | Total Off-Balance Sheet Commitments | $280,786 | $283,594 | $(2,808) | -0.99% | - The reserve for unfunded loan commitments remained stable at **$464,000** at both June 30, 2025, and December 31, 2024[133](index=133&type=chunk) [Note 11: Significant Estimates and Concentrations](index=35&type=section&id=Note%2011%3A%20Significant%20Estimates%20and%20Concentrations) Hospitality and energy loans represent significant concentrations, and goodwill is evaluated annually for potential impairment - Hospitality loans constituted **19%** of gross total loans (**$278.5 million**) at June 30, 2025[135](index=135&type=chunk) - Energy loans constituted **11%** of gross total loans (**$168.4 million**) at June 30, 2025[135](index=135&type=chunk) - Goodwill of **$11.2 million** was recorded on the consolidated balance sheet at June 30, 2025, and is evaluated annually for potential impairment[136](index=136&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses Bank7 Corp.'s financial performance, noting decreased pre-tax net income despite growth in loans and deposits, and increased efficiency ratios - Bank7 Corp. is a bank holding company operating twelve locations in Oklahoma, Dallas/Fort Worth, Texas, and Kansas, focused on serving business owners and entrepreneurs[139](index=139&type=chunk) - Total loans increased by **10.7%** to **$1.50 billion**, and total deposits increased by **7.6%** to **$1.59 billion** as of June 30, 2025, compared to June 30, 2024[141](index=141&type=chunk) - Pre-tax net income decreased by **3.6%** for Q2 2025 and **5.7%** for the six months ended June 30, 2025, compared to the prior year periods[142](index=142&type=chunk) - Return on average assets (ROAA) for Q2 2025 was **2.47%** (down from **2.74%** in Q2 2024) and return on average equity (ROAE) was **19.62%** (down from **25.02%** in Q2 2024)[143](index=143&type=chunk) - The efficiency ratio for Q2 2025 was **39.95%**, up from **37.72%** in Q2 2024[143](index=143&type=chunk) [Q2 2025 Overview](index=36&type=section&id=Q2%202025%20Overview) The second quarter of 2025 saw loan and deposit growth, but a decline in pre-tax net income and returns on assets and equity, alongside an increased efficiency ratio Q2 2025 Key Financial Metrics | Metric | June 30, 2025 | June 30, 2024 | Change | % Change | | :----------------------------------- | :------------ | :------------ | :----- | :------- | | Total Loans (in billions) | $1.50 | $1.35 | $0.15 | 10.7% | | Total Deposits (in billions) | $1.59 | $1.48 | $0.11 | 7.6% | | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | % Change | | :----------------------------------- | :----------------------------- | :----------------------------- | :----- | :------- | | Pre-tax Net Income (in millions) | $14.7 | $15.3 | $(0.6) | -3.92% | | Return on Average Assets | 2.47% | 2.74% | -0.27% | -9.85% | | Return on Average Equity | 19.62% | 25.02% | -5.40% | -21.58% | | Efficiency Ratio | 39.95% | 37.72% | 2.23% | 5.91% | [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Overall profitability decreased due to lower loan yields and noninterest income, partially offset by reduced interest expense - Net interest income for Q2 2025 increased by **$506,000** (**2.38%**) to **$21.7 million**, while for the six months ended June 30, 2025, it decreased by **$662,000** (**-1.53%**) to **$42.6 million**[11](index=11&type=chunk) - Total noninterest income for Q2 2025 decreased by **$464,000** (**-14.7%**) to **$2.7 million**, primarily due to lower income from oil and gas assets[158](index=158&type=chunk) - Total noninterest expense for Q2 2025 increased by **$590,000** (**6.5%**) to **$9.7 million**, driven by higher salaries and employee benefits and data processing costs[161](index=161&type=chunk) [Net Interest Income and Net Interest Margin](index=37&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income increased for Q2 2025 due to volume, but net interest margin decreased, and average yield on assets declined - For Q2 2025, net interest income increased by **$506,000**, driven by a **$1.145 million** increase due to volume, partially offset by a **$639,000** decrease due to rate changes[152](index=152&type=chunk) - Net interest margin for Q2 2025 was **4.96%**, down from **5.15%** in Q2 2024[146](index=146&type=chunk) - For the six months ended June 30, 2025, net interest income decreased by **$662,000**, with a **$1.037 million** increase due to volume offset by a **$1.699 million** decrease due to rate changes[152](index=152&type=chunk) - Average yield on total interest-earning assets for Q2 2025 was **7.25%**, a decrease of **62 basis points** from Q2 2024[147](index=147&type=chunk) [Securities](index=40&type=section&id=Securities) The investment portfolio consists of available-for-sale securities, with all unrealized losses at June 30, 2025, being non-credit related - The investment portfolio consists entirely of available-for-sale securities, with carrying values adjusted for unrealized gains/losses reported in other comprehensive income[153](index=153&type=chunk) - The Company assesses potential credit losses by comparing fair value to amortized cost; all unrealized losses at June 30, 2025, were non-credit related and no impairment loss was recognized[154](index=154&type=chunk) - The total fair value of available-for-sale securities was **$57.17 million** at June 30, 2025, with a weighted average taxable equivalent yield of **1.69%**[155](index=155&type=chunk) [Provision for Credit Losses](index=40&type=section&id=Provision%20for%20Credit%20Losses) No provision for credit losses was recorded for the three or six months ended June 30, 2025, and the allowance as a percentage of total loans decreased - No provision for credit losses was recorded for the three or six months ended June 30, 2025, or 2024[11](index=11&type=chunk)[157](index=157&type=chunk) - The allowance for credit losses as a percentage of total loans decreased by **9 basis points** to **1.22%** for both the three and six months ended June 30, 2025[157](index=157&type=chunk) [Noninterest Income](index=41&type=section&id=Noninterest%20Income) Total noninterest income decreased for Q2 2025, primarily due to lower income from oil and gas assets Noninterest Income (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | % Change | | :-------------------- | :----------------------------- | :----------------------------- | :----- | :------- | | Mortgage lending income | $520 | $78 | $442 | 566.67% | | Service charges on deposit accounts | $232 | $260 | $(28) | -10.77% | | Other income and fees | $1,949 | $2,827 | $(878) | -31.06% | | Total noninterest income | $2,701 | $3,165 | $(464) | -14.66% | - The decrease in noninterest income was primarily attributable to lower income from oil and gas assets[158](index=158&type=chunk)[159](index=159&type=chunk) [Noninterest Expense](index=42&type=section&id=Noninterest%20Expense) Total noninterest expense increased for Q2 2025, driven by higher salaries, employee benefits, and data processing costs Noninterest Expense (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | % Change | | :-------------------- | :----------------------------- | :----------------------------- | :----- | :------- | | Salaries and employee benefits | $5,721 | $5,118 | $603 | 11.78% | | Data and item processing | $590 | $481 | $109 | 22.66% | | Regulatory assessments | $213 | $336 | $(123) | -36.61% | | Advertising and public relations | $223 | $83 | $140 | 168.67% | | Total noninterest expense | $9,732 | $9,142 | $590 | 6.45% | | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | % Change | | :-------------------- | :----------------------------- | :----------------------------- | :----- | :------- | | Salaries and employee benefits | $11,000 | $10,407 | $593 | 5.70% | | Data and item processing | $1,100 | $939 | $161 | 17.15% | [Financial Condition](index=43&type=section&id=Financial%20Condition) Total assets and the loan portfolio grew, nonperforming assets decreased, and the Company maintained strong capital ratios and increased deposits - Total assets increased by **$96.6 million** (**5.6%**) to **$1.84 billion** as of June 30, 2025, from **$1.74 billion** at December 31, 2024[165](index=165&type=chunk) - Gross loans increased to **$1.50 billion** at June 30, 2025, from **$1.40 billion** at December 31, 2024[166](index=166&type=chunk) - Total deposits increased to **$1.59 billion** at June 30, 2025, from **$1.52 billion** at December 31, 2024[187](index=187&type=chunk) [Total Assets](index=43&type=section&id=Total%20Assets) Total assets increased by **$96.6 million**, or **5.6%**, to **$1.84 billion** as of June 30, 2025, from **$1.74 billion** as of December 31, 2024 - Total assets increased by **$96.6 million**, or **5.6%**, to **$1.84 billion** as of June 30, 2025, from **$1.74 billion** as of December 31, 2024[165](index=165&type=chunk) [Loan Portfolio](index=43&type=section&id=Loan%20Portfolio) Gross loans increased to **$1.50 billion** as of June 30, 2025, with all loan types remaining within internal concentration limits Gross Loan Portfolio by Category (in thousands) | Loan Category | June 30, 2025 (in thousands) | % of Total | December 31, 2024 (in thousands) | % of Total | Change (in thousands) | % Change | | :-------------------------- | :----------------------------- | :--------- | :----------------------------- | :--------- | :-------------------- | :------- | | Construction & development | $192,910 | 12.9% | $167,685 | 12.0% | $25,225 | 15.04% | | 1-4 family real estate | $125,637 | 8.4% | $121,047 | 8.7% | $4,590 | 3.79% | | Commercial real estate - other | $554,902 | 36.9% | $511,304 | 36.5% | $43,598 | 8.53% | | Commercial & industrial | $534,950 | 35.7% | $507,023 | 36.2% | $27,927 | 5.51% | | Agricultural | $78,126 | 5.2% | $77,922 | 5.6% | $204 | 0.26% | | Consumer | $13,534 | 0.9% | $14,312 | 1.0% | $(778) | -5.44% | | Gross loans | $1,500,059 | 100.0% | $1,399,293 | 100.0% | $100,766 | 7.20% | - The Company has established internal concentration limits for CRE, hospitality, energy, and construction loans, and all loan types are within these limits[167](index=167&type=chunk) [Allowance for Credit Losses](index=44&type=section&id=Allowance%20for%20Credit%20Losses) The allowance for credit losses increased slightly, with net recoveries reported for the six months ended June 30, 2025 Allowance for Credit Losses (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | % Change | | :-------------------- | :------------ | :---------------- | :----- | :------- | | Allowance for credit losses | $18,222 | $17,918 | $304 | 1.70% | - For the six months ended June 30, 2025, net recoveries were **$304,000**, compared to net charge-offs of **$1.919 million** for the same period in 2024[172](index=172&type=chunk) - The allowance is allocated across loan categories, with Commercial real estate - other (**40.6%**) and Commercial & industrial (**38.6%**) holding the largest percentages at June 30, 2025[172](index=172&type=chunk) [Nonperforming Assets](index=46&type=section&id=Nonperforming%20Assets) Total nonperforming assets decreased by **23.72%**, and the ratio of nonperforming loans to total loans improved to **0.37%** Nonperforming Assets (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | % Change | | :----------------------------------- | :------------ | :---------------- | :----- | :------- | | Nonaccrual loans | $5,463 | $7,170 | $(1,707) | -23.81% | | Accruing loans 90 or more days past due | $6 | $0 | $6 | N/A | | Total nonperforming assets | $5,469 | $7,170 | $(1,701) | -23.72% | | Ratio of nonperforming loans to total loans | 0.37% | 0.51% | -0.14% | -27.45% | | Ratio of allowance for credit losses to nonaccrual loans | 333.55% | 249.90% | 83.65% | 33.47% | - The Company uses an internal risk grading system (Pass, Watch, Special Mention, Substandard) to evaluate loans, with "Substandard" loans having defined weaknesses that might jeopardize repayment[181](index=181&type=chunk)[184](index=184&type=chunk) - Total loans categorized as "Substandard" decreased to **$8.73 million** at June 30, 2025, from **$15.23 million** at December 31, 2024[185](index=185&type=chunk) [Deposits](index=49&type=section&id=Deposits) Total deposits increased by **5.19%** to **$1.59 billion**, with a notable increase in interest-bearing transaction and brokered deposits Deposit Balances by Category (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | % Change | | :-------------------- | :------------ | :---------------- | :----- | :------- | | Total deposits | $1,594,138 | $1,515,471 | $78,667 | 5.19% | | Noninterest-bearing demand | $315,824 | $313,258 | $2,566 | 0.82% | | Interest-bearing transaction deposits | $968,314 | $889,679 | $78,635 | 8.84% | | Brokered deposits | $371,500 | $336,700 | $34,800 | 10.33% | | Uninsured deposits | $380,300 | $354,200 | $26,100 | 7.37% | | Uninsured deposits as % of total deposits | 24.0% | 23.4% | 0.6% | 2.56% | [Liquidity](index=50&type=section&id=Liquidity) Liquidity is supported by liquid assets and access to alternative funds, with FHLB borrowing availability increasing and Federal Reserve access decreasing - Liquidity is supported by liquid assets (cash, interest-bearing deposits, fed funds sold) and access to alternative funds (wholesale deposits, FHLB advances, correspondent bank borrowings)[193](index=193&type=chunk) - Borrowing availability with the FHLB was **$223.5 million** at June 30, 2025, up from **$190.9 million** at December 31, 2024[195](index=195&type=chunk) - Access to liquidity with the Federal Reserve Bank was approximately **$296.3 million** at June 30, 2025, down from **$336.1 million** at December 31, 2024[195](index=195&type=chunk) [Capital Requirements](index=50&type=section&id=Capital%20Requirements) Both the Company and Bank met all Basel III capital adequacy requirements, with the Bank categorized as "well-capitalized" by the FDIC - As of June 30, 2025, the Company and Bank met all capital adequacy requirements under Basel III Capital Rules, including maintaining the capital conservation buffer[197](index=197&type=chunk)[199](index=199&type=chunk) - The Bank was categorized as "well-capitalized" by the FDIC as of June 30, 2025[91](index=91&type=chunk)[196](index=196&type=chunk) Capital Ratios (June 30, 2025) | Capital Ratio | Company (June 30, 2025) | Bank (June 30, 2025) | Minimum Req. | Well Capitalized Req. (Bank) | | :----------------------------------- | :---------------------- | :------------------- | :----------- | :--------------------------- | | Total capital to risk-weighted assets | 15.05% | 15.06% | 8.00% | 10.00% | | Tier I capital to risk-weighted assets | 13.89% | 13.90% | 6.00% | 8.00% | | Common equity tier I capital to risk-weighted assets | 13.89% | 13.90% | 4.50% | 6.50% | | Tier I capital to average assets | 12.49% | 12.49% | 4.00% | 5.00% | [Contractual Obligations](index=52&type=section&id=Contractual%20Obligations) The Company's total contractual obligations, primarily deposits without a stated maturity and time deposits, slightly increased from December 31, 2024, to June 30, 2025. Management believes it can meet these obligations through profitability and deposit gathering Total Contractual Obligations (in thousands) | Obligation Type (in thousands) | June 30, 2025 | December 31, 2024 | Change | % Change | | :----------------------------- | :------------ | :---------------- | :----- | :------- | | Deposits without a stated maturity | $1,364,247 | $1,276,316 | $87,931 | 6.89% | | Time deposits | $229,891 | $239,155 | $(9,264) | -3.88% | | Operating lease commitments | $2,264 | $1,874 | $390 | 20.81% | | Total contractual obligations | $1,596,402 | $1,517,345 | $79,057 | 5.21% | - Management expects to meet contractual obligations through profitability, loan repayment, maturity activity, and continued deposit gathering[201](index=201&type=chunk) [Off-Balance Sheet Arrangements](index=52&type=section&id=Off-Balance%20Sheet%20Arrangements) The Company's off-balance sheet arrangements primarily consist of commitments to extend credit and standby letters of credit, which represent credit and interest rate risk. Total commitments slightly decreased from December 31, 2024, to June 30, 2025 Off-Balance Sheet Commitments (in thousands) | Commitment Type (in thousands) | June 30, 2025 | December 31, 2024 | Change | % Change | | :----------------------------- | :------------ | :---------------- | :----- | :------- | | Commitments to extend credit | $263,846 | $272,261 | $(8,415) | -3.09% | | Standby letters of credit | $16,940 | $11,333 | $5,607 | 49.48% | | Total | $280,786 | $283,594 | $(2,808) | -0.99% | - The Company uses the same underwriting standards for off-balance sheet credit risk as for on-balance sheet loans[202](index=202&type=chunk) [Critical Accounting Policies and Estimates](index=53&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section outlines the critical accounting policies and estimates that require significant management judgment, including the allowance for credit losses, goodwill and intangibles, income taxes, and fair value of financial instruments - Management makes estimates and assumptions that affect reported amounts, particularly for the allowance for credit losses, income taxes, goodwill and intangibles, and fair values of financial instruments[208](index=208&type=chunk)[209](index=209&type=chunk) [Allowance for Credit Losses](index=53&type=section&id=Allowance%20for%20Credit%20Losses) The allowance for credit losses is management's estimate of probable losses, determined by segmenting the loan portfolio and evaluating classified loans - The allowance is management's estimate of probable losses, with future additions potentially needed due to economic changes or portfolio composition[210](index=210&type=chunk) - The loan portfolio is segmented by type and risk, using historical loss factors adjusted for trends and conditions, and classified loans over **$250,000** are individually evaluated[211](index=211&type=chunk) [Goodwill and Intangibles](index=54&type=section&id=Goodwill%20and%20Intangibles) Goodwill and intangible assets are tested annually for impairment, with core deposit intangibles amortized over 10 years - Intangible assets totaled **$815,000** and goodwill was **$11.2 million** as of June 30, 2025[213](index=213&type=chunk) - Goodwill is tested annually for impairment, or more frequently if indicators are present, and is written down to implied fair value if impaired[214](index=214&type=chunk) - Core deposit intangible assets are amortized on a straight-line basis over an estimated useful life of **10 years**[215](index=215&type=chunk) [Income Taxes](index=54&type=section&id=Income%20Taxes) Deferred taxes are recognized based on temporary differences, with the effective tax rate for Q2 2025 consistent with the prior year - Deferred taxes are recognized based on future tax consequences of temporary differences between carrying amounts and tax basis[216](index=216&type=chunk) - The effective tax rate was **24.5%** for Q2 2025, consistent with **24.6%** for Q2 2024, primarily influenced by state income taxes and tax-exempt income[219](index=219&type=chunk) [Fair Value of Financial Instruments](index=54&type=section&id=Fair%20Value%20of%20Financial%20Instruments) Fair value is defined as an orderly transaction price, with available-for-sale debt securities reported at estimated fair value and unrealized losses reviewed quarterly - Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between market participants[220](index=220&type=chunk) - Available-for-sale debt securities are stated at estimated fair value, with unrealized gains or losses reported as a component of stockholders' equity and comprehensive income[221](index=221&type=chunk) - The Company reviews debt securities in an unrealized loss position quarterly to assess intent to sell or likelihood of being required to sell, and to evaluate if declines are due to credit losses[222](index=222&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company's primary market risk is interest rate volatility, which is managed by the Asset/Liability Committee (ALCO) through balance sheet structuring and simulation models - The primary component of market risk is interest rate volatility, which impacts income, expense, and market value of assets/liabilities[224](index=224&type=chunk)[225](index=225&type=chunk) - Interest rate risk is managed by the ALCO Committee, which formulates strategies and reviews asset/liability sensitivity, liquidity, and maturities[227](index=227&type=chunk) - The Company uses interest rate risk simulation models and shock analyses to test the impact of interest rate changes on net interest income and fair value of equity[228](index=228&type=chunk) [Interest Rate Sensitivity and Market Risk](index=55&type=section&id=Interest%20Rate%20Sensitivity%20and%20Market%20Risk) The Company manages interest rate risk through ALCO, aiming to limit net interest income decline to 10% for a -100 basis point shift - The Company's internal policy specifies that estimated net interest income at risk for the subsequent one-year period should not decline by more than **10%** for a **-100 basis point** shift[229](index=229&type=chunk) Simulated Change in Net Interest Income and Fair Value of Equity (June 30, 2025) | Change in Interest Rates (Basis Points) | Percent Change in Net Interest Income (June 30, 2025) | Percent Change in Fair Value of Equity (June 30, 2025) | | :------------------------------------ | :---------------------------------------------------- | :----------------------------------------------------- | | +400 | 19.94% | 22.19% | | +300 | 15.88% | 21.16% | | +200 | 11.70% | 20.02% | | +100 | 7.13% | 18.75% | | Base | 2.15% | 17.29% | | -100 | -3.00% | 15.69% | | -200 | -7.29% | 13.93% | [Impact of Inflation](index=56&type=section&id=Impact%20of%20Inflation) Interest rates have a greater impact on the Company's performance than general inflation, though operating expenses reflect inflation levels - Substantially all of the Company's assets and liabilities are monetary, making interest rates more impactful on performance than general inflation[233](index=233&type=chunk) - Operating expenses do reflect general levels of inflation[233](index=233&type=chunk) [Item 4. Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Management, with CEO and CFO participation, evaluated and concluded that disclosure controls and procedures were effective as of June 30, 2025[234](index=234&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025[235](index=235&type=chunk) [Disclosure Controls and Procedures](index=56&type=section&id=Disclosure%20Controls%20and%20Procedures) Disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025 - Disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025[234](index=234&type=chunk) [Changes in Internal Control over Financial Reporting](index=56&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025 - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025[235](index=235&type=chunk) [PART II. OTHER INFORMATION](index=55&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section includes legal proceedings, risk factors, equity sales, defaults, mine safety, other information, exhibits, and signatures [Item 1. Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) The Company is occasionally involved in routine legal actions incidental to its business but believes no existing proceedings, individually or in aggregate, would have a material adverse effect on its financial statements - The Company is a party to routine legal actions but management believes no proceedings would have a material adverse effect on financial statements[237](index=237&type=chunk) [Item 1A. Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) This section refers readers to the "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, noting no material changes other than those explicitly set forth in this report - Readers are referred to the Annual Report on Form 10-K for a comprehensive list of risk factors[238](index=238&type=chunk) - No material changes in risk factors were disclosed other than those explicitly mentioned in this report[238](index=238&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company adopted a repurchase plan in October 2023 authorizing the repurchase of up to 750,000 shares, but no shares were purchased under this plan during the six months ended June 30, 2025 - A repurchase plan authorizing up to **750,000 shares** was adopted on October 30, 2023[239](index=239&type=chunk) - No shares were purchased under the repurchase plan during the six months ended June 30, 2025[239](index=239&type=chunk) [Item 3. Defaults Upon Senior Securities](index=57&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities reported for the period - None[240](index=240&type=chunk) [Item 4. Mine Safety Disclosures](index=57&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) No mine safety disclosures were reported for the period - None[240](index=240&type=chunk) [Item 5. Other Information](index=57&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated Rule 10b5-1 or Non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025 - No officers or directors adopted or terminated Rule 10b5-1 or Non-Rule 10b5-1 trading arrangements during Q2 2025[240](index=240&type=chunk) [Item 6. Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications, XBRL documents, and the cover page interactive data file - Includes certifications from Principal Executive Officer and Principal Financial Officer (Exhibits 31.1, 31.2, 32.1)[241](index=241&type=chunk) - Contains various XBRL taxonomy extension documents (Exhibits 101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE) and the Cover Page Interactive Data File (Exhibit 104)[241](index=241&type=chunk) [Signatures](index=58&type=section&id=Signatures) The report was duly signed on August 7, 2025, by Thomas L. Travis, Vice Chairman and Chief Executive Officer, and Kelly J. Harris, Executive Vice President and Chief Financial Officer - Signed by Thomas L. Travis, Vice Chairman and CEO, and Kelly J. Harris, EVP and CFO, on August 7, 2025[244](index=244&type=chunk)

Core Viewpoint - Bank7 (BSVN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2][4] Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5] - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3] Bank7's Earnings Outlook - For the fiscal year ending December 2025, Bank7 is expected to earn $4.19 per share, unchanged from the previous year [7] - Over the past three months, the Zacks Consensus Estimate for Bank7 has increased by 0.1%, reflecting a positive revision trend [7] Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [6][8] - Bank7's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9]

Group 1 - Bank7 (NASDAQ: BSVN) shares increased by 4.5% on July 18th following the announcement of its financial results for the second quarter of the 2025 fiscal year [1] - The company is part of a sector focused on cash flow generation, particularly in oil and natural gas, which is highlighted by Crude Value Insights [1] Group 2 - Crude Value Insights provides an investing service and community that emphasizes cash flow and growth prospects in the oil and gas industry [1] - Subscribers to Crude Value Insights gain access to a stock model account, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Core Insights - Bank7 Corp. reported strong second-quarter 2025 results, highlighting significant loan and deposit growth, a net interest margin (NIM) at the high end of its historical range, and a low efficiency ratio, indicating one of its best quarters ever [1][2] Operational Efficiency and Loan Growth - The core efficiency ratio remained between 36% and 38%, with robust quarterly loan growth, particularly in commercial and energy sectors, driven by the bank's focus on Oklahoma and Texas [2][3] - Management's ability to maintain a low efficiency ratio alongside strong loan growth reflects effective cost control and profitability, positioning the bank favorably against regional peers [3] Loan Book Diversification - Energy production loans increased by $3.035 million, but energy portfolio exposure is now about half of what it was seven to eight years ago, with growth in commercial and hospitality segments, particularly in the Dallas-Fort Worth area [4][5] - The strategic shift in the loan portfolio enhances credit resilience and positions the balance sheet for growth in more diversified sectors [5] Margin Management and Rate Environment - Loan yields averaged 7.6% in Q2 2025, with management expecting some NIM pressure in Q3 2025 but projecting it to remain within historical ranges due to asset sensitivity and interest rate management strategies [6][7] - The bank's rate positioning provides downside protection for profitability, allowing it to better withstand margin compression compared to less asset-sensitive peers [7] Future Outlook - Guidance for Q3 2025 includes projected total expenses of $10 million, with $1 million related to oil and gas, and an expectation of $2 million in fee income [8] - Management anticipates a full recovery of oil and gas cash outlays by mid-2026, with a strong origination pipeline and cautious optimism for continued performance [9]

Financial Data and Key Metrics Changes - The company reported one of its best quarters ever, driven by strong loan and deposit growth, maintaining a net interest margin (NIM) on the higher end of its historical range, and benefiting from a low efficiency ratio [6][7] - Core earnings showed significant strength due to solid loan growth and asset quality remained high [6][7] Business Line Data and Key Metrics Changes - Loan growth was particularly strong in the energy sector, with production loans increasing by approximately $30 million to $35 million [41] - The company has shifted its energy portfolio focus from service deals to hedged oil and gas production, indicating a strategic pivot towards more stable revenue sources [41][45] Market Data and Key Metrics Changes - The competitive pricing environment in Texas and Oklahoma is described as historically normal, with new loans expected to come in slightly lower than the 7.6% core yield reported in Q2 [22] - The company is experiencing a mix of loan types, with notable activity in commercial and industrial (C&I) lending and owner-occupied real estate [42] Company Strategy and Development Direction - The company is focused on evaluating merger and acquisition opportunities, particularly in dynamic markets, while maintaining a disciplined approach [14][15] - There is an emphasis on maintaining a strong credit quality and underwriting fundamentals, with no new business lines being added [58] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the second half of the year, citing strong economic conditions in their operating regions [65] - The company is prepared for potential rate cuts, with expectations that loan and deposit betas will remain aligned [48][50] Other Important Information - The company anticipates a slight increase in expenses in the second half of the year, with Q2 serving as a solid guide for future expense run rates [25][39] - The recovery of cash from oil and gas assets is projected to be complete by mid-next year, indicating a positive outlook for this segment [34][35] Q&A Session Summary Question: Loan growth momentum for the second half of the year - Management indicated that the loan pipeline looks solid, with strong origination in Q1 and Q2, but acknowledged potential unpredictability due to chunky paydowns [10][11] Question: NIM outlook with expected growth - Management noted that while deposit costs may rise to support growth, they expect to remain within historical ranges for NIM [12][13] Question: Update on M&A activity - Management confirmed ongoing discussions and evaluations for potential partnerships, emphasizing a disciplined approach to M&A [14][15] Question: Competitive pricing dynamics and loan yields - Management observed that the current pricing environment is normal, with some pressure on loan yields but overall stability in the market [22] Question: Expense run rate expectations - Management projected a slight increase in expenses, with Q2 figures serving as a baseline for future expectations [25][39] Question: Credit quality and charge-offs outlook - Management reported a cleaner NPA number and stable credit quality, with no significant changes expected in the near term [57][58]

Financial Data and Key Metrics Changes - The company reported one of its best quarters ever, driven by strong loan and deposit growth, maintaining a net interest margin (NIM) on the higher end of its historical range, and benefiting from a low efficiency ratio [6][7] - Core earnings showed significant strength due to solid loan growth and asset quality remained high [6][7] Business Line Data and Key Metrics Changes - Loan growth was particularly strong in the energy sector, with production loans increasing by approximately $30 million to $35 million [38] - The company experienced growth in owner-occupied real estate, with an increase of about $19 million, and some growth in the hospitality portfolio [40][41] Market Data and Key Metrics Changes - The competitive pricing environment in Texas and Oklahoma is described as historically normal, with loan pricing slightly lower than the 7.6% core yield reported in Q2 [22] - The company noted a solid deal pipeline in Oklahoma and Texas, indicating a favorable economic environment for business [11] Company Strategy and Development Direction - The company is focused on evaluating merger and acquisition opportunities, maintaining a disciplined approach, and seeking partnerships in dynamic markets [15][16] - There is an emphasis on maintaining credit quality and underwriting fundamentals while exploring growth in various segments [56] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the second half of the year, citing strong markets and a talented team of bankers [63] - The economic environment is viewed positively, with management noting a continuous path toward cleaner non-performing asset (NPA) numbers [55][56] Other Important Information - The company is projecting a slight increase in expenses for the second half of the year, with Q2 serving as a solid guide for future expense run rates [26][28] - The recovery of cash outlay from oil and gas assets is expected to be complete by mid-next year [31] Q&A Session Summary Question: Loan growth momentum for the second half of the year - Management indicated a solid deal pipeline and expressed confidence in loan growth despite potential paydown unpredictability [11][12] Question: NIM outlook and deposit costs - Management acknowledged that deposit costs may rise to fund growth but expects to remain within historical ranges for NIM [13][14] Question: M&A activity updates - Management confirmed ongoing discussions and evaluations for potential mergers, emphasizing a disciplined approach [15][16] Question: Competitive pricing dynamics and loan portfolio yields - Management noted that new loans are expected to come in slightly lower than the previous quarter's yield but described the pricing environment as normal [22] Question: Appetite for adding talent and producers - Management is exploring opportunities for talent acquisition but emphasized the importance of cultural fit and careful evaluation [25] Question: Expense run rate expectations - Management projected a slight increase in expenses but maintained that it would not significantly impact the efficiency ratio [26][28] Question: Credit quality and charge-offs outlook - Management reported a cleaner NPA number and maintained a positive outlook on credit quality, despite some economic uncertainties [55][56]

Core Viewpoint - Bank7 (BSVN) reported quarterly earnings of $1.16 per share, exceeding the Zacks Consensus Estimate of $0.98 per share, but down from $1.23 per share a year ago, indicating an earnings surprise of +18.37% [1][2] Financial Performance - The company achieved revenues of $24.44 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 7.19%, consistent with year-ago revenues [2] - Over the last four quarters, Bank7 has exceeded consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - Bank7 shares have declined approximately 2.3% since the beginning of the year, contrasting with the S&P 500's gain of 6.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.96 on revenues of $22.6 million, and for the current fiscal year, it is $4.04 on revenues of $90.9 million [7] - The trend of earnings estimate revisions for Bank7 was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Banks - Southeast industry, to which Bank7 belongs, is currently ranked in the top 23% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]