Bank7 Corp.
For the period ended Mar 31, 2025. Filed May 12, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 12, 2025
BSVN$58.39-0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-05.
0001140361-24-045199
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-12.
0001140361-25-018373
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 105 previous paragraphs and 102 current paragraphs.
77 unchanged; 16 reworded; 7 added; 12 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 45 previous and 30 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
(1) Variances attributable to both volume and rate are allocated on a consistent basis between rate and volume based on the absolute value of the variances in each category.
Current report
Noninterest income for the three months ended March 31, 2025 was $1.8 million compared to $2.0 million for the same period in 2024, a decrease of $251,000, or 12.5%.
Current report
Noninterest expense for the three months ended March 31, 2025 was $8.9 million compared to $9.1 million for the same period in 2024, a decrease of $253,000, or 2.8%.
Current report
Loans are evaluated for expected credit losses over their contractual term, reflecting management’s current estimate. Loans placed on nonaccrual status and loan modifications granted to borrowers experiencing financial difficulty are considered to have elevated credit risk and are carefully considered within our current expected credit loss methodology. Income from loans placed on nonaccrual status continues to be recognized to the extent cash is received and when the collectability of the loan’s principal balance is reasonably assured. Depending on a particular loan’s risk characteristics, we estimate expected credit losses using methods such as present value of expected future cash flows discounted at the loan’s effective interest rate, observable market prices for similar assets if available, or the fair value of collateral less estimated costs to sell for collateral-dependent loans. A loan is considered collateral-dependent when the expected source of repayment is primarily the liquidation of the collateral. Fair value, where utilized, is determined by independent appraisals, typically on an annual basis. Between appraisal periods, the estimated fair value may be adjusted based on specific events, such as identified deterioration of collateral quality through our credit risk monitoring, or discussions with the borrower indicating the appraised value may no longer reflect current market conditions. The estimated credit losses are recognized as an allowance for credit losses, which is a valuation account. Changes in the allowance for credit losses, whether increases or decreases, are recorded in current period earnings as provision for credit losses.
Current report
(1) There are no loans modified to borrowers experiencing financial difficulty included in nonaccrual loans as of March 31, 2025 and December 31, 2024, respectively.
Current report
As of March 31, 2025, and December 31, 2024, brokered deposits were $334.2 million and $336.7 million, respectively.
Current report
Allowance for Credit Losses
Removed paragraphs (12)
Previous report
For the third quarter of 2024 compared to the third quarter of 2023:
Previous report
For the first nine months of 2024 compared to the same period in 2023:
Previous report
For the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023:
Previous report
Noninterest income for the three months ended September 30, 2024 was $3.7 million compared to $1.0 million for the same period in 2023, an increase of $2.7 million, or 265.1%. The increase was primarily attributable to income related to the operation of oil and gas assets acquired during the fourth quarter of 2023, see Note 2 of the financial statements.
Previous report
The following table sets forth the major components of our noninterest income for the nine months ended September 30, 2024 and 2023:
Previous report
Noninterest income for the nine months ended September 30, 2024 was $8.9 million compared to $2.5 million for the same period in 2023, an increase of $6.4 million, or 258.1%. The increase was primarily attributable to income related to the operation of oil and gas assets acquired during the fourth quarter of 2023, see Note 2 of the financial statements.
Previous report
Noninterest expense for the three months ended September 30, 2024 was $9.4 million compared to $7.4 million for the same period in 2023, an increase of $2.0 million, or 27.2%. The increase was primarily attributable to expense related to the operation of oil and gas assets acquired during the fourth quarter of 2023, see Note 2 of the financial statements.
Previous report
The following table sets forth the major components of our noninterest expense for the nine months ended September 30, 2024 and 2023:
Previous report
Noninterest expense for the nine months ended September 30, 2024 was $27.7 million compared to $22.4 million for the same period in 2023, an increase of $5.3 million, or 23.5%. The increase was primarily attributable to expense related to the operation of oil and gas assets acquired during the fourth quarter of 2023, see Note 2 of the financial statements.
Previous report
Allowance for Credit and Lease Losses
Previous report
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if we deemed necessary upon extension of credit, is based on management’s credit evaluation of the counterparty. The Company also estimates a reserve for potential losses associated with off-balance sheet commitments and letters of credit. It is included in other liabilities in the Company’s consolidated statements of condition, with any related provisions to the reserve included in non-interest expense in the consolidated statement of income.
Previous report
In determining the reserve for unfunded lending commitments, a process similar to the one used for the allowance is employed. Based on historical experience, loss factors, adjusted for expected funding, are applied to the Company’s off-balance sheet commitments and letters of credit to estimate the potential for losses.
Reworded paragraphs (16)
Previous wording
We reported total loans of $1.44 billion as of September 30, 2024, an increase of $44.8 million, or 3.2%, from September 30, 2023. Total deposits were $1.52 billion as of September 30, 2024, a decrease of $69.4 million, or 4.4%, as compared to September 30, 2023.
Current wording
We reported total loans of $1.42 billion as of March 31, 2025, an increase of $49.9 million, or 3.6%, from March 31, 2024. Total deposits were $1.55 billion as of March 31, 2025, a decrease of $28.9 million, or 1.8%, as compared to March 31, 2024.
Previous wording
Pre-tax net income was $15.5 million, an increase of $5.3 million, or 51.9%, for the three months ended September 30, 2024 as compared to pre-tax net income of $10.2 million for the same period in 2023. Pre-tax net income was $45.6 million, an increase of $10.0 million, or 28.0%, for the nine months ended September 30, 2024 as compared to pre-tax net income of $35.7 million for the same period in 2023.
Current wording
Pre-tax net income was $13.7 million, a decrease of $1.2 million, or 7.9%, for the three months ended March 31, 2025 as compared to pre-tax net income of $14.9 million for the same period in 2024.
Previous wording
Return on average assets and return on average equity was 2.73% and 23.67%, respectively for the three months ended September 30, 2024, as compared to 1.82% and 18.89%, respectively, for the same period in 2023. Return on average assets and return on average equity was 2.68% and 24.79%, respectively for the nine months ended September 30, 2024, as compared to 2.19% and 23.29%, respectively, for the same period in 2023. Our efficiency ratio for the three months ended September 30, 2024 was 37.87% as compared to 33.61% for the same period in 2023. Our efficiency ratio for the nine months ended September 30, 2024 was 37.58% as compared to 35.05% for the same period in 2023.
Current wording
Return on average assets and return on average equity was 3.20% and 25.47%, respectively for the three months ended March 31, 2025, as compared to 3.40% and 33.97%, respectively, for the same period in 2024. Our efficiency ratio for the three months ended March 31, 2025 was 39.45% as compared to 38.29% for the same period in 2024.
Previous wording
The provision for credit losses for the three months ended September 30, 2024 decreased $4.2 million, or 100.0%, as compared to the same period in 2023. The provision for credit losses for the nine months ended September 30, 2024 decreased $5.6 million or 100.0%, as compared to the same period in 2023. The provision expense for the nine months ended September 30, 2023 was related to loan growth in the first quarter of 2023, the impact of updated economic assumptions, and we had a single loan customer that filed for bankruptcy, and as a result, we recorded an additional allowance for credit losses of $3.0 million.
Current wording
For the first quarter of 2025 compared to the first quarter of 2024:
Previous wording
*Yield is on taxable-equivalent basis using 21% tax rate
Current wording
Yield is on a taxable-equivalent basis using 21% tax rate
Previous wording
Total assets decreased $31.2 million, or 1.8%, to $1.74 billion as of September 30, 2024, compared to $1.77 billion as of December 31, 2023.
Current wording
Total assets increased $45.7 million, or 2.6%, to $1.79 billion as of March 31, 2025, compared to $1.74 billion as of December 31, 2024.
Previous wording
Our loans represent the largest portion of our earning assets. The quality and diversification of the loan portfolio is an important consideration when reviewing our financial condition. As of September 30, 2024, and December 31, 2023, our gross loans were $1.44 billion and $1.36 billion, respectively.
Current wording
Our loans represent the largest portion of our earning assets. The quality and diversification of the loan portfolio is an important consideration when reviewing our financial condition. As of March 31, 2025, and December 31, 2024, our gross loans were $1.43 billion and $1.40 billion, respectively.
Previous wording
The allowance was $17.9 million at September 30, 2024, compared to $19.7 million at December 31, 2023.
Current wording
The allowance was $18.2 million at March 31, 2025, compared to $17.9 million at December 31, 2024.
Previous wording
Total deposits as of September 30, 2024 and December 31, 2023 were $1.52 billion and $1.59 billion, respectively.
Current wording
Total deposits as of March 31, 2025 and December 31, 2024 were $1.55 billion and $1.52 billion, respectively.
Previous wording
Uninsured deposits are defined as the portion of deposit accounts in U.S. offices that exceed the FDIC insurance limit and amounts in any other uninsured investment or deposit account that are classified as deposits and are not subject to any federal or state deposit insurance regimes. Total uninsured deposits were $344.6 million and $448.7 million at September 30, 2024 and December 31, 2023, respectively, as calculated per regulatory guidance. This was approximately 22.6% and 28.2% of deposits at September 30, 2024 and December 31, 2023, respectively.
Current wording
Uninsured deposits are defined as the portion of deposit accounts in U.S. offices that exceed the FDIC insurance limit and amounts in any other uninsured investment or deposit account that are classified as deposits and are not subject to any federal or state deposit insurance regimes. Total uninsured deposits were $377.9 million and $354.2 million at March 31, 2025 and December 31, 2024, respectively, as calculated per regulatory guidance. These amounts were approximately 24.4% and 23.4% of deposits at March 31, 2025 and December 31, 2024, respectively.
Previous wording
As of September 30, 2024, we had no unsecured fed funds lines with correspondent depository institutions, with no corresponding amounts advanced. In addition, based on the values of loans pledged as collateral, we had borrowing availability with the FHLB of $192.0 million as of September 30, 2024 and $159.2 million as of December 31, 2023, and we had access to approximately $367.7 million in liquidity with the Federal Reserve Bank as of September 30, 2024 and $0 as of December 31, 2023.
Current wording
As of March 31, 2025, we had no unsecured fed funds lines with correspondent depository institutions, with no corresponding amounts advanced. In addition, based on the values of loans pledged as collateral, we had borrowing availability with the FHLB of $206.8 million as of March 31, 2025 and $190.9 million as of December 31, 2024, and we had access to approximately $296.7 million in liquidity with the Federal Reserve Bank as of March 31, 2025 and $336.1 million as of December 31, 2024.
Previous wording
Shareholders’ equity provides a source of permanent funding, allows for future growth and provides a cushion to withstand unforeseen adverse developments. Total shareholders’ equity increased $33.8 million as of September 30, 2024 to $204.2 million, compared to $170.3 million as of December 31, 2023.
Current wording
Shareholders’ equity provides a source of permanent funding, allows for future growth and provides a cushion to withstand unforeseen adverse developments. Total shareholders’ equity increased $8.4 million as of March 31, 2025 to $221.7 million, compared to $213.2 million as of December 31, 2024.
Previous wording
We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheet. The contractual or notional amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments.
Current wording
We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheet. The contractual or notional amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments. To control this credit risk, the Company uses the same underwriting standards as it uses for loans recorded on the balance sheet.
Previous wording
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of the customer to a third party. They are intended to be disbursed, subject to certain conditions, upon request of the borrower.
Current wording
Loan commitments are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of the customer to a third party. They are intended to be disbursed, subject to certain conditions, upon request of the borrower.
Previous wording
Intangible assets totaled $907,000 and goodwill, net of accumulated amortization, totaled $8.5 million as of September 30, 2024, compared to intangible assets of $1.0 million and goodwill of $8.5 million as of December 31, 2023.
Current wording
Intangible assets totaled $846,000 and goodwill, net of accumulated amortization, totaled $11.2 million as of March 31, 2025, compared to intangible assets of $878,000 and goodwill of $8.5 million as of December 31, 2024.
Previous wording
ASC Topic 820, Fair Value Measurement, defines fair value as the price that would be received to sell a financial asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. The degree of management judgment involved in determining the fair value of assets and liabilities is dependent upon the availability of quoted market prices or observable market parameters. For financial instruments that trade actively and have quoted market prices or observable market parameters, there is minimal subjectivity involved in measuring fair value. When observable market prices and parameters are not available, management judgment is necessary to estimate fair value. In addition, changes in market conditions may reduce the availability of quoted prices or the observable date. Debt securities that are being held for indefinite periods of time and are not intended to sell, are classified as available for sale and are stated at estimated fair value. Unrealized gains or losses on debt securities available for sale are reported as a component of stockholders’ equity and comprehensive income, net of income tax.
Current wording
ASC Topic 820, Fair Value Measurement, defines fair value as the price that would be received to sell a financial asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. The degree of management judgment involved in determining the fair value of assets and liabilities is dependent upon the availability of quoted market prices or observable market parameters. For financial instruments that trade actively and have quoted market prices or observable market parameters, there is minimal subjectivity involved in measuring fair value. When observable market prices and parameters are not available, management judgment is necessary to estimate fair value. In addition, changes in market conditions may reduce the availability of quoted prices or the observable date.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Current report — wording carried from elsewhere
Debt securities that are being held for indefinite periods of time and are not intended to sell, are classified as available for sale and are stated at estimated fair value. Unrealized gains or losses on debt securities available for sale are reported as a component of stockholders’ equity and comprehensive income, net of income tax.