Bank7(BSVN) - 2025 Q3 - Quarterly Results

Q3 2025 Earnings Announcement Executive Summary & Highlights Bank7 Corp. announced solid Q3 2025 results, highlighted by strong pre-provision pre-tax earnings (PPE), a resilient core net interest margin, robust capital ratios, and exceptional liquidity, positioning the company for sustained growth - Thomas L. Travis, President and CEO, expressed delight in another solid quarter, citing strong PPE, a resilient core net interest margin, robust capital ratios, exceptional liquidity, and dynamic geographical markets as drivers for sustained growth in 2025[1] Key Financial Highlights (Q3 2025 vs Q2 2025) | Metric | Q3 2025 | Q2 2025 | Change (%) | | :--------------------------------- | :-------- | :-------- | :--------- | | Net Income | $10.8 million | $11.1 million | -2.35% | | Earnings per share | $1.13 | $1.16 | -2.59% | | Total Assets | $1.9 billion | $1.8 billion | +3.00% | | Total Loans | $1.5 billion | $1.5 billion | +2.46% | | Pre-provision pre-tax earnings (PPE) | $14.9 million | $14.7 million | +1.29% | | Total Interest Income | $33.7 million | $31.8 million | +6.09% | Capital Adequacy Both the Bank and the Company maintained capital levels significantly above regulatory 'well-capitalized' minimums, demonstrating strong financial stability as of September 30, 2025 - 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[2] Capital Ratios as of September 30, 2025 | Ratio | Bank | Company (Consolidated) | | :---------------------------- | :----- | :--------------------- | | Tier 1 leverage ratio | 12.71% | 12.71% | | Tier 1 risk-based capital ratio | 14.23% | 14.22% | | Total risk-based capital ratio | 15.44% | 15.43% | Non-GAAP Financial Measures The company utilizes Pre-Provision Pre-Tax Earnings (PPE) as a non-GAAP measure to assess performance, adjusting GAAP net income by excluding income tax expense, provision for credit losses, and gains/losses on available-for-sale debt securities - Pre-provision pre-tax earnings (PPE) is a non-GAAP financial measure used by management to analyze performance, adjusting GAAP net income by excluding income tax expense, provision for credit losses, and loss on sales and calls of available-for-sale debt securities[3] Calculation of Pre-Provision Pre-Tax Earnings (PPE) (Thousands) | Metric | Q3 2025 (Thousands) | Q2 2025 (Thousands) | | :----------------------------------- | :------------------ | :------------------ | | Net Income | $10,844 | $11,105 | | Income Tax Expense | $3,342 | $3,602 | | Pre-tax net income | $14,186 | $14,707 | | Add back: Provision for credit losses | $700 | $- | | Add back: (Gain)Loss on sales/calls of AFS debt securities | $10 | $- | | Pre-provision pre-tax earnings | $14,896 | $14,707 | Condensed Consolidated Financial Statements Unaudited Condensed Consolidated Balance Sheets The company's total assets increased to $1.89 billion as of September 30, 2025, from $1.74 billion at December 31, 2024, driven primarily by growth in loans and cash. Total deposits also saw an increase over the period Key Balance Sheet Figures (September 30, 2025 vs December 31, 2024) (Thousands) | Metric | Sep 30, 2025 (Thousands) | Dec 31, 2024 (Thousands) | Change (Thousands) | Change (%) | | :----------------------------------- | :----------------------- | :----------------------- | :----------------- | :--------- | | Total assets | $1,891,435 | $1,739,808 | $151,627 | +8.72% | | Loans, net of allowance for credit losses | $1,514,822 | $1,379,465 | $135,357 | +9.81% | | Total deposits | $1,636,827 | $1,515,471 | $121,356 | +8.01% | | Total liabilities | $1,649,699 | $1,526,595 | $123,104 | +8.06% | | Total shareholders' equity | $241,736 | $213,213 | $28,523 | +13.38% | Unaudited Condensed Consolidated Statements of Comprehensive Income For Q3 2025, net income decreased to $10.84 million from $11.78 million in Q3 2024, primarily due to higher noninterest expenses and a provision for credit losses, despite an increase in net interest income. Year-to-date net income also saw a slight decrease Key Income Statement Figures (Three Months Ended September 30, 2025 vs 2024) (Thousands) | Metric | Q3 2025 (Thousands) | Q3 2024 (Thousands) | Change (Thousands) | Change (%) | | :----------------------------------- | :------------------ | :------------------ | :----------------- | :--------- | | Total interest income | $33,717 | $33,488 | $229 | +0.68% | | Total interest expense | $10,691 | $12,271 | -$1,580 | -12.88% | | Net Interest Income | $23,026 | $21,217 | $1,809 | +8.53% | | Provision for Credit Losses | $700 | $- | $700 | N/A | | Total noninterest income | $2,210 | $3,677 | -$1,467 | -39.89% | | Total noninterest expense | $10,350 | $9,398 | $952 | +10.13% | | Income Before Taxes | $14,186 | $15,496 | -$1,310 | -8.45% | | Net Income | $10,844 | $11,777 | -$933 | -7.92% | | Earnings per common share - diluted | $1.13 | $1.24 | -$0.11 | -8.87% | Key Income Statement Figures (Nine Months Ended September 30, 2025 vs 2024) (Thousands) | Metric | YTD 2025 (Thousands) | YTD 2024 (Thousands) | Change (Thousands) | Change (%) | | :----------------------------------- | :------------------- | :------------------- | :----------------- | :--------- | | Total interest income | $95,942 | $99,210 | -$3,268 | -3.29% | | Total interest expense | $30,334 | $34,752 | -$4,418 | -12.71% | | Net Interest Income | $65,608 | $64,458 | $1,150 | +1.78% | | Provision for Credit Losses | $700 | $- | $700 | N/A | | Total noninterest income | $6,663 | $8,852 | -$2,189 | -24.73% | | Total noninterest expense | $28,964 | $27,676 | $1,288 | +4.65% | | Income Before Taxes | $42,607 | $45,634 | -$3,027 | -6.63% | | Net Income | $32,285 | $34,589 | -$2,304 | -6.66% | | Earnings per common share - diluted | $3.38 | $3.68 | -$0.30 | -8.15% | Net Interest Margin Analysis Net Interest Margin: Three Months Ended September 30, 2025 vs 2024 The net interest margin for Q3 2025 improved to 5.07% from 5.02% in Q3 2024, driven by a higher net interest spread despite a slight decrease in the average yield on total interest-earning assets Net Interest Margin and Spread (Q3 2025 vs Q3 2024) | Metric | Q3 2025 | Q3 2024 | Change (bps) | | :---------------- | :------ | :------ | :----------- | | Net interest spread | 4.10% | 3.78% | +32 bps | | Net interest margin | 5.07% | 5.02% | +5 bps | Interest Income/Expense and Yield/Rate (Q3 2025 vs Q3 2024) (Thousands) | Category | Q3 2025 Avg Balance (Thousands) | Q3 2025 Income/Expense (Thousands) | Q3 2025 Yield/Rate | Q3 2024 Avg Balance (Thousands) | Q3 2024 Income/Expense (Thousands) | Q3 2024 Yield/Rate | | :--------------------------------- | :------------------------------ | :--------------------------------- | :----------------- | :------------------------------ | :--------------------------------- | :----------------- | | Total interest-earning assets | $1,800,507 | $33,717 | 7.43% | $1,678,406 | $33,488 | 7.92% | | Total interest-bearing deposits | $1,273,755 | $10,691 | 3.33% | $1,175,757 | $12,271 | 4.14% | Net Interest Margin: Nine Months Ended September 30, 2025 vs 2024 For the nine months ended September 30, 2025, the net interest margin slightly decreased to 5.00% from 5.10% in the prior year, primarily due to a lower average yield on interest-earning assets, despite an increase in net interest income Net Interest Margin and Spread (YTD 2025 vs YTD 2024) | Metric | YTD 2025 | YTD 2024 | Change (bps) | | :---------------- | :------- | :------- | :----------- | | Net interest spread | 4.04% | 3.75% | +29 bps | | Net interest margin | 5.00% | 5.10% | -10 bps | Interest Income/Expense and Yield/Rate (YTD 2025 vs YTD 2024) (Thousands) | Category | YTD 2025 Avg Balance (Thousands) | YTD 2025 Income/Expense (Thousands) | YTD 2025 Yield/Rate | YTD 2024 Avg Balance (Thousands) | YTD 2024 Income/Expense (Thousands) | YTD 2024 Yield/Rate | | :--------------------------------- | :------------------------------- | :--------------------------------- | :------------------ | :------------------------------- | :--------------------------------- | :------------------ | | Total interest-earning assets | $1,752,703 | $95,942 | 7.32% | $1,682,882 | $99,210 | 7.85% | | Total interest-bearing deposits | $1,236,861 | $30,334 | 3.28% | $1,127,983 | $34,752 | 4.10% | Additional Company Information About Bank7 Corp. Bank7 Corp. is an Oklahoma City-based bank holding company operating twelve locations across Oklahoma, Dallas/Fort Worth, and Kansas, focusing on serving business owners and entrepreneurs with tailored loan and deposit products. The company plans organic growth and strategic acquisitions - Bank7 Corp. operates twelve locations in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas, focusing on serving business owners and entrepreneurs[13] - The company's strategy includes organic growth through selectively opening additional branches in target markets and pursuing strategic acquisitions[13] Conference Call Details Bank7 Corp. scheduled a conference call for October 15, 2025, at 9:00 a.m. CST to discuss Q3 results, accessible via phone or webcast, with an archive available for one year - A conference call to discuss third-quarter results is scheduled for Wednesday, October 15, 2025, at 9:00 a.m. central standard time, accessible via dial-in (1-888-348-6421) or live webcast (https://app.webinar.net/7lgm0NeVnjQ), with an archive available for one year[14] Cautionary Statements Regarding Forward-Looking Information The document contains forward-looking statements reflecting current views on future events and financial performance, which are subject to significant uncertainties including interest rate changes, economic conditions, and regulatory policies. Actual results may differ materially from these statements, and the company undertakes no obligation to update them - The communication contains forward-looking statements that reflect Bank7 Corp.'s current views on future events and financial performance, which are not historical facts and may turn out to be inaccurate[15] - These statements are subject to significant uncertainties, including future changes in interest rates, market behavior, economic conditions, laws, regulations, accounting principles, and supervisory policies, which could cause actual results to differ materially[16] Contact Information Contact information for Thomas Travis, President & CEO, is provided for inquiries - For inquiries, contact Thomas Travis, President & CEO, at (405) 810-8600[17]