Bank7 Corp. Q2 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. Bank7 Corp. is a bank holding company headquartered in Oklahoma City, operating twelve full-service branches in Oklahoma, Texas, and Kansas. The company focuses on serving business owners and entrepreneurs. As of August 10, 2026, there were 9,525,856 shares of common stock outstanding.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Net Income | $8.3 million | $11.1 million | $20.4 million | $21.4 million |
| Earnings Per Share (Diluted) | $0.87 | $1.16 | $2.12 | $2.25 |
| Net Interest Income | $21.9 million | $21.7 million | $46.1 million | $42.6 million |
| Noninterest Income | $1.0 million | $2.7 million | $3.0 million | $4.5 million |
| Noninterest Expense | $11.9 million | $9.7 million | $22.2 million | $18.6 million |
| Efficiency Ratio | 52.05% | 39.95% | 45.18% | 39.44% |
| Total Assets | $1.91 billion | $1.80 billion | $1.91 billion | $1.77 billion |
| Total Loans (Gross) | $1.60 billion | $1.45 billion | $1.60 billion | $1.42 billion |
| Total Deposits | $1.64 billion | $1.60 billion | $1.64 billion | $1.60 billion |
| Allowance for Credit Losses | $19.5 million | $18.2 million | $19.5 million | $18.2 million |
| Net Cash Provided by Operating Activities | N/A | N/A | $24.1 million | $20.4 million |
Material Changes vs. Prior Period
- Profitability Decline: Net income decreased 25.1% year-over-year for the quarter and 5.6% year-over-year for the six months. This was primarily driven by a $2.1 million pre-tax loss recognized on the sale of oil and gas assets in Q2 2026.
- Expense Increase: Noninterest expense rose 22.2% for the quarter, largely due to the aforementioned asset sale loss and increased salaries and employee benefits.
- Revenue Composition: Noninterest income dropped 62.9% for the quarter due to the absence of oil and gas revenues following the asset disposition. Conversely, mortgage lending income increased 39.5% year-over-year for the six-month period.
- Loan Growth: Total loans increased $100 million (6.7%) compared to June 30, 2025, driven by growth in commercial real estate and construction portfolios.
- Interest Margin: Net interest margin (NIM) decreased to 4.81% for the quarter from 4.96% in the prior year, reflecting lower yields on loans and short-term investments.
Guidance, Outlook, and Risks
- Acquisition Activity: On July 1, 2026, the company entered into a Stock Purchase Agreement to acquire approximately 71% of Century Financial Services Corporation for $68.0 million. A $7.3 million good-faith deposit was funded. The transaction is subject to court approval and regulatory clearance.
- Asset Disposition: The company successfully exited its oil and gas operations in Q2 2026. While this resulted in a GAAP loss, management notes the total cash recovery exceeded the initial investment by $3.7 million over the holding period.
- Capital Position: The Bank is categorized as "well-capitalized" by the FDIC. All regulatory capital ratios significantly exceed minimum requirements and capital conservation buffers.
- Internal Controls: Management concluded that disclosure controls and procedures were not effective as of June 30, 2026, due to material weaknesses previously disclosed (including deposit operations, related party transactions, and IT general controls). Remediation efforts are ongoing.
- Concentrations: Hospitality loans represent 18.2% of the gross loan portfolio, and energy loans represent 8.1%.
Investor Verification Checklist
- Century Financial Acquisition: Verify the status of the $68 million acquisition of Century Financial Services, including regulatory approvals and auction outcomes.
- Internal Control Remediation: Monitor progress on remediating material weaknesses in internal controls over financial reporting, specifically regarding deposit operations and IT controls.
- Oil & Gas Asset Sale Impact: Confirm the final cash proceeds and tax implications of the oil and gas asset disposition to reconcile GAAP losses with non-GAAP cash returns.
- Loan Portfolio Quality: Review the concentration of hospitality (18.2%) and energy (8.1%) loans for potential credit stress given economic conditions.
- Efficiency Ratio Trend: Assess whether the elevated efficiency ratio (52.05%) is a temporary anomaly due to the asset sale or indicative of structural cost increases.