Bank7 (NASDAQ:BSVN) Announces Earnings Results, Beats Expectations By $0.01 EPS

Bank7 (NASDAQ:BSVN) released its earnings results on Thursday, October 15th. The company reported $1.06 EPS for the quarter, beating analysts’ consensus estimates of $1.05 by $0.01, Zacks reports. The firm had revenue of $23.37 million for the quarter, compared to analysts’ expectations of $23.75 million. Bank7 had a return on equity of 15.96% and a net margin of 30.55%.

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

• Strong organic loan growth continued despite more than $130 million in customer paydowns, supported by a robust loan pipeline and favorable Texas and Oklahoma economies.
• The pending Century Financial merger, expected to close November 1, is viewed as strategically and financially beneficial, adding low-cost deposits, expanding New Mexico markets, and creating approximately 30% cost savings with most expected in the first quarter after closing.
• Management expects the merger to be initially neutral to net interest margin, although cheaper funding should provide flexibility to maintain margins or selectively support faster loan growth as cash from Century’s bond portfolio is redeployed.
• The transaction will generate approximately $16 million in one-time merger expenses, while systems conversion costs and remaining integration work are expected to weigh on near-term efficiency; the final goodwill amount also remains uncertain because of interest-rate-sensitive valuation marks.

Bank7 Price Performance

Bank7 stock opened at $58.63 on Monday. The company has a market capitalization of $558.74 million, a PE ratio of 13.63 and a beta of 0.74. Bank7 has a one year low of $38.29 and a one year high of $59.96. The business has a 50 day simple moving average of $55.21 and a 200 day simple moving average of $47.58.

Bank7 Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 8th. Shareholders of record on Friday, September 18th were issued a $0.30 dividend. This is a boost from Bank7’s previous quarterly dividend of $0.27. The ex-dividend date of this dividend was Friday, September 18th. This represents a $1.20 dividend on an annualized basis and a yield of 2.0%. Bank7’s payout ratio is currently 27.91%.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the stock. Zacks Research raised shares of Bank7 from a “strong sell” rating to a “hold” rating in a research report on Monday, October 26th. Piper Sandler increased their target price on shares of Bank7 from $61.00 to $69.00 and gave the stock an “overweight” rating in a research note on Friday, October 16th. Weiss Ratings restated a “buy (b)” rating on shares of Bank7 in a report on Wednesday, September 9th. UBS Group reissued a “buy” rating on shares of Bank7 in a research report on Friday, October 16th. Finally, Keefe, Bruyette & Woods raised their price target on Bank7 from $56.00 to $62.00 and gave the stock an “outperform” rating in a report on Wednesday, September 23rd. Four equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, Bank7 has a consensus rating of “Moderate Buy” and a consensus price target of $64.33.

Insider Activity

In other news, VP Jason Estes sold 2,077 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $50.17, for a total value of $104,203.09. Following the completion of the transaction, the vice president owned 103,840 shares in the company, valued at $5,209,652.80. This represents a 1.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Darrell Lee Jr. Mathews sold 1,750 shares of the company’s stock in a transaction dated Tuesday, October 20th. The stock was sold at an average price of $57.61, for a total value of $100,817.50. Following the sale, the executive vice president owned 9,997 shares in the company, valued at $575,927.17. The trade was a 14.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 25.71% of the company’s stock.

Bank7 Company Profile

Bank7 is a community bank headquartered in Oklahoma City, Oklahoma, and the principal subsidiary of Bank7 Corporation (NASDAQ: BSVN). Founded in 2004, the bank serves businesses, professionals and individual customers through banking locations in Oklahoma and Texas.

The bank provides a range of commercial and consumer banking services, including business and personal checking and savings accounts, certificates of deposit, commercial real estate lending, construction loans, commercial and industrial loans, residential real estate loans and consumer financing.