Bank7 (NASDAQ:BSVN) Releases Quarterly Earnings Results, Misses Expectations By $0.16 EPS

Bank7 (NASDAQ:BSVN) released its earnings results on Thursday. The company reported $0.87 earnings per share for the quarter, missing analysts’ consensus estimates of $1.03 by ($0.16), Zacks reports. The firm had revenue of $22.91 million for the quarter, compared to analyst estimates of $23.86 million. Bank7 had a return on equity of 16.74% and a net margin of 30.36%.

Here are the key takeaways from Bank7’s conference call:

• Management said the quarter included a $3.7 million net gain from exiting its oil and gas investment, and the company is now out of that business. They described the result as better than expected and said it helped offset prior losses tied to the assets.
• The bank is still spending on IT remediation tied to prior material weakness concerns, and also on potential M&A-related work. CFO Kelly Harris said Q3 expenses are expected to stay elevated, around $9.5 million to $9.7 million.
• Executives said asset quality is “better than ever” and the balance sheet remains strong with plenty of liquidity, no debt, and heavy capital. Management also said the company is well positioned for both organic growth and M&A.
• The loan pipeline was described as robust, with third-quarter fundings expected to roughly double Q2 levels. Even so, management expects known paydowns to offset some of that activity, keeping full-year loan growth around mid-single digits.
• Deposit costs were described as essentially stable, with June consistent with the second-quarter average and current costs around 2.28% to 2.3%. Management also expects the core net interest margin to remain in the 4.45% to 4.53% range, with potential upside if rates rise later this year.

Bank7 Stock Performance

BSVN stock opened at $50.96 on Friday. Bank7 has a 52 week low of $38.29 and a 52 week high of $52.99. The company’s 50-day simple moving average is $46.33 and its 200 day simple moving average is $43.83. The company has a market capitalization of $485.14 million, a PE ratio of 11.66 and a beta of 0.91.

Key Stories Impacting Bank7

Here are the key news stories impacting Bank7 this week:

• Positive Sentiment: Keefe, Bruyette & Woods raised its price target on Bank7 to $56 from $54 and kept an outperform rating, signaling about 9.9% upside from the current price. Benzinga
• Positive Sentiment: Q2 earnings call highlights emphasized strong asset quality, margin strength, and continued strategic growth plans, which may support investor confidence in the bank’s longer-term outlook. Yahoo Finance
• Neutral Sentiment: Bank7 is moving ahead with its M&A process, targeting a September 3 auction end date and projecting Q3 expenses of $9.5 million to $9.7 million, which adds uncertainty but also signals active strategic execution. Seeking Alpha
• Negative Sentiment: Q2 results missed estimates, with earnings of $0.87 per share versus expectations of $1.03 and revenue of $22.91 million versus $23.86 million, partly due to a one-time charge. MarketBeat

Wall Street Analyst Weigh In

BSVN has been the topic of a number of research analyst reports. Keefe, Bruyette & Woods increased their price target on Bank7 from $54.00 to $56.00 and gave the stock an “outperform” rating in a research report on Friday. Piper Sandler increased their target price on shares of Bank7 from $57.00 to $61.00 and gave the stock an “overweight” rating in a report on Friday. Zacks Research cut Bank7 from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 15th. Finally, Weiss Ratings upgraded Bank7 from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, June 12th. Three equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, Bank7 has a consensus rating of “Moderate Buy” and an average target price of $58.50.

Insider Activity at Bank7

In other news, EVP Darrell Lee Jr. Mathews sold 1,000 shares of the business’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $43.00, for a total transaction of $43,000.00. Following the completion of the transaction, the executive vice president owned 6,497 shares of the company’s stock, valued at approximately $279,371. The trade was a 13.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Douglas A. Haines sold 1,000 shares of the business’s stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $44.07, for a total value of $44,070.00. Following the sale, the insider owned 16,647 shares in the company, valued at $733,633.29. This represents a 5.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 25.71% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. BNP Paribas Financial Markets boosted its stake in Bank7 by 30.2% in the third quarter. BNP Paribas Financial Markets now owns 1,812 shares of the company’s stock valued at $84,000 after acquiring an additional 420 shares during the last quarter. Wells Fargo & Company MN grew its stake in Bank7 by 47.8% in the 4th quarter. Wells Fargo & Company MN now owns 4,763 shares of the company’s stock valued at $195,000 after buying an additional 1,540 shares in the last quarter. Zacks Investment Management bought a new stake in Bank7 during the 4th quarter valued at $202,000. Jacobs Levy Equity Management Inc. bought a new stake in Bank7 during the 3rd quarter valued at $213,000. Finally, HRT Financial LP purchased a new stake in shares of Bank7 during the fourth quarter worth $218,000. 23.48% of the stock is owned by institutional investors.

About Bank7

Bank7 Corporation, through its subsidiary Bank7, National Association, is a regional banking organization that offers a full range of deposit and lending products to both consumer and commercial clients. Its deposit offerings include checking and savings accounts, money market funds and certificates of deposit, while its lending portfolio encompasses residential and commercial real estate loans, small business loans and consumer credit products.

Complementing its core banking services, Bank7 provides digital banking solutions such as online and mobile platforms for account management, bill payment and remote check deposit.