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Bank7 Corp. (BSVN)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered solid core performance: diluted EPS $1.13 and net income $10.8M, with net interest margin at 5.07% and PPE rising to $14.9M; capital ratios remain well above “well-capitalized” thresholds .
  • Results beat Wall Street on EPS and slightly on revenue: EPS $1.13 vs $1.06 consensus; revenue $24.54M vs $24.35M; beats driven by resilient NIM, loan growth, and fee income outperformance; management guided slight NIM compression in Q4 as rate cuts flow through, mitigated by loan floors and deposit management [GetEstimates]* .
  • Strategic actions support capital returns and flexibility: dividend raised 12.5% to $0.27 and stock repurchase program renewed for up to 750,000 shares over two years .
  • Potential stock reaction catalysts: sustained core NIM amid rate cuts, robust organic loan and deposit growth, disciplined reserve build given macro volatility, and continued capital return capacity (dividend and buyback authorization) .

What Went Well and What Went Wrong

What Went Well

  • Core profitability and margin resilience: net interest margin held at 5.07% YoY and core NIM ended the quarter at 4.55% despite September rate cut; PPE up 1.29% QoQ, reflecting disciplined pricing and expense control .
  • Organic growth momentum: $36.9M organic loan growth and strong deposit inflows; management highlighted strong banker-driven pipelines in Oklahoma/Texas .
  • Capital and asset quality: CET1 14.22%, Tier 1 leverage 12.71%; NPLs/loans 0.35% and net recoveries of $483K (-13 bps), supporting confidence in credit book .

Management quote: “All the elements of the bank look fantastic, the liquidity, the capital, earnings and the margin.” — Tom Travis, CEO .

What Went Wrong

  • Noninterest income normalization: other income softened vs prior year ($1.58M vs $3.35M), pulling total noninterest income down to $2.21M; mortgage remains slow, with elevated fallout rates despite improving pipeline .
  • NIM near-term compression risk: CFO guided core NIM down toward ~4.50–4.47% in Q4 as rate cuts pass through, with some deposit cost pressure late in Q3 .
  • Provision build: $0.7M provision added given loan growth and macro volatility; management cautioned potential future builds if conditions or growth warrant .

Financial Results

MetricQ3 2024Q2 2025Q3 2025
Net Interest Income ($USD Millions)$21.217 $21.738 $23.026
Noninterest Income ($USD Millions)$3.677 $2.701 $2.210
Net Income ($USD Millions)$11.777 $11.105 $10.844
Diluted EPS ($USD)$1.24 $1.16 $1.13
Net Interest Margin (%)5.02% 4.96% 5.07%

Vs. Wall Street consensus (S&P Global):

MetricConsensus EstimateActualSurprise
EPS ($)$1.06*$1.13 +$0.07 (6.6%) — bold beat*
Revenue ($USD Millions)$24.347*$24.536*+$0.189 (0.8%) — beat*

Values marked with * retrieved from S&P Global.

Segment/Composition

MetricQ2 2025Q3 2025
Total Interest Income ($USD Millions)$31.781 $33.717
Total Interest Expense ($USD Millions)$11.204 $10.691
Net Interest Income ($USD Millions)$21.738 $23.026
Total Noninterest Income ($USD Millions)$2.701 $2.210
Total Noninterest Expense ($USD Millions)$9.732 $10.350

Balance Sheet KPIs

MetricQ2 2025Q3 2025
Total Assets ($USD Millions)$1,836.346 $1,891.435
Total Loans, Net ($USD Millions)$1,479.134 $1,514.822
Total Deposits ($USD Millions)$1,594.138 $1,636.827
CET1 Ratio (%) (Company)—14.22%
Tier 1 Leverage (%) (Company)—12.71%
NPLs / Total Loans (%)—0.35%
Net Recoveries ($USD Millions; bps)—$0.483; -13 bps

Non-GAAP (PPE)

MetricQ2 2025Q3 2025
Pre-provision Pre-tax Earnings (PPE) ($USD Millions)$14.707 $14.896

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Core NIM (ex-loan fees)Q4 2025Not specified~4.50% early Q4, potentially ~4.47% by late Q4 as loan floors kick in; deposit beta pacing assumed Lowered
Noninterest ExpenseQ4 2025~$10.0M ($1.0M oil & gas, $9.0M core) from Q2 run-rate views $9.0–$9.5M core expense run-rate Maintained/Refined
Core Fee IncomeQ4 2025~$1.0M core fee (Q3 used as guide) ~$1.0M core fee; oil & gas less predictable Maintained
Provision for Credit LossesNear-termNonePrudent builds possible if macro or loan growth warrant; otherwise set for foreseeable future Conditional
DividendQ4 2025$0.24$0.27 per share (12.5% increase) Raised
Buyback Authorization2025–2027Existing programRenewed for up to 750,000 shares over two years Maintained/Renewed

Earnings Call Themes & Trends

TopicQ1 2025Q2 2025Q3 2025Trend
NIM trajectory & rate sensitivityBottomed ~4.60%; expected to hold into Q2/Q3 Slight degradation but within historical ranges; deposit costs manageable; floors help Core NIM ended Q3 at 4.55%; guide ~4.50–4.47% in Q4 as rate cuts pass through Slightly down near-term, stable medium-term
Deposit dynamicsCore deposits added; COF reduced Deposit costs stable; mix management offsets growth funding Some late-Q3 deposit upward pressure; manage liability pace Mild cost pressure; active management
Loan growth pipelineStrong demand; diversified bookings Solid pipeline; lumpy paydowns possible Pipeline “good”; target high-single-digit YoY growth; mindful of lumpy paydowns Robust but lumpy
Credit quality & reservesClean book; low past dues Clean trends; energy/C&I churn manageable Benign migrations; slight reserve build prudently Strong/Stable
Mortgage business—Investment made; modest expectations Slow market; pipeline improving but high fallout; niche service for HNW clients Gradual improvement into 2026
Oil & gas assetRecovery tailwind; book value ~$10M ~75% recovered cash outlay; full recovery expected mid-2026 Less predictable; using Q3 as guide for Q4 fees Diminishing impact
M&A postureAOCI overhang dampens seller activity; disciplined buyer Close on LOIs; evaluating MOE/lift-outs Active; AOCI still an overhang; disciplined approach Opportunistic/Disciplined
Macro/tariffsElevated uncertainty, cautious stance Economy strong in markets; monitor policy impacts Macro volatility cited; prudence in reserves Continued caution

Management Commentary

  • “We are excited about the markets we operate in… organic growth has just been really good all year and it’s continuing to drive the institution forward.” — Tom Travis, CEO .
  • “We ended the quarter at 4.55% from a core NIM perspective… you could see further NIM compression slightly down to 4.50%… creep down to 4.47% as those loan floors kick in.” — Kelly Harris, CFO .
  • “Pipeline still has plenty of activity… target high single-digit year-over-year growth… always careful with lumpy paydowns.” — Jason Estes, Chief Credit Officer .
  • “We believe it’s prudent to put the hay in the barn… when we grow the portfolio and see increased volatility… we felt like it was prudent [to provision].” — Tom Travis, CEO .

Q&A Highlights

  • Loan growth and pricing: New loans coming slightly below ~7.4% (roughly 7–7.25%); competitive pressure more on deposits than loans; pipeline supports high-single-digit growth targets .
  • Margin outlook: Core NIM 4.55% at Q3-end; guided to ~4.50–4.47% in Q4 with deposit beta pacing and loan floors providing downside protection .
  • Fee income sustainability: Recent outperformance from loan fee income likely trends back toward normal, with core fees ~$1M run-rate; oil & gas variable .
  • Credit/reserve: Benign criticized/classified migration; reserve build driven by growth and macro volatility; further builds possible if macro/growth change .
  • Mortgage outlook: Pipeline up vs. six months prior but high fallout; positioned as niche service for HNW clients; 2026 likely better than 2025 .
  • M&A: Active but disciplined; AOCI overhang and long-duration low-rate loans at targets keep some sellers on the sidelines; have come close on a few deals .

Estimates Context

  • Q3 2025 EPS beat: $1.13 actual vs $1.06 consensus (+6.6%). Revenue modest beat: $24.54M actual vs $24.35M consensus (+0.8%). Beats reflect resilient NIM, loan growth, and fee contributions; estimate dispersion limited (3 EPS ests, 2 revenue ests) [GetEstimates]*.
  • Given near-term NIM compression guide and fee normalization, forward estimates may drift modestly lower on NIM assumptions, offset by continued loan growth and operating efficiency; watch revisions after guidance and macro rate path commentary .

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Core fundamentals intact: strong NIM and PPE with top-tier capital ratios provide downside protection as rates decline and macro uncertainty persists .
  • Near-term NIM drift manageable: guided ~4.50–4.47% in Q4; loan floors and liability management should cushion compression; monitor deposit pricing pressure .
  • Growth engine still on: robust pipelines and banker productivity support continued organic loan and deposit expansion; expect lumpy paydowns but net growth remains positive .
  • Credit stable with prudent reserves: benign migrations and net recoveries; reserve build reflects growth and macro caution; additional builds conditional on environment .
  • Capital returns optionality: dividend increased to $0.27 and buyback renewed (750k shares) provide flexibility to return capital while maintaining strong buffers .
  • Trading implications (short-term): EPS/Rev beats and confident tone may support shares; watch sell-side revisions post-NIM guide and fee normalization commentary [GetEstimates]* .
  • Thesis (medium-term): Asset sensitivity, disciplined credit, and organic growth in dynamic markets position BSVN to compound TBV and maintain top-tier ROA/ROATCE through rate transitions .