Bank7 Q3 Profit Rises 22% as Century Deal Nears Closing

Bank7 Corp. (NASDAQ: BSVN) reported a 22.3% sequential increase in third-quarter net income, while deposit growth outpaced loan expansion and strengthened the bank’s liquidity position ahead of its planned acquisition of Century Financial Services Corp.

Net income for the quarter ended September 30, 2026, rose to $10.2 million from $8.3 million in the second quarter. Diluted earnings per share increased 21.8% to $1.06 from $0.87, and return on average assets improved to 2.13% from 1.80%.

Adjusted core net income, which excludes oil and gas results and acquisition-related expenses and consulting fees, increased 5.3% to $10.7 million. Adjusted core diluted EPS rose to $1.11 from $1.06, while adjusted core return on average assets was 2.24% and adjusted core return on average tangible common equity was 16.50%.

Non-GAAP pre-provision, pre-tax earnings increased to $13.6 million from $11.0 million. On an adjusted core basis, the measure rose 6.3% to $14.3 million.

Deposits Outpace Loan Growth

Total assets reached $2.01 billion at quarter-end, up 4.8% from June 30. Total deposits increased 5.1% to $1.72 billion, while total loans grew 2.2% to $1.63 billion despite what the company described as significant payoffs. The loan-to-deposit ratio declined to 94.88% from 97.53%.

Net interest income edged up to $22.3 million from $21.9 million. However, the net interest margin narrowed to 4.77% from 4.81%. Excluding loan-fee income, the non-GAAP margin declined to 4.38% from 4.53%, remaining within the company’s historical range. The cost of funds increased to 2.37% from 2.28%, while the yield on loans excluding fees was nearly unchanged at 7.01%.

Noninterest expense fell to $9.8 million from $11.9 million, helping lower the efficiency ratio to 41.60% from 51.78%. The adjusted core efficiency ratio was 38.75%.

Commercial and industrial loans remained the largest selected category at $411.7 million, or 25.2% of total loans. Hospitality lending increased to $316.1 million, or 19.3% of the portfolio, from $290.9 million in the prior quarter. Energy loans declined to $124.6 million, or 7.6% of total loans.

Credit Quality and Capital

Bank7 recorded no provision for credit losses during the quarter. Net charge-offs were four basis points of average loans, compared with net recoveries of two basis points in the second quarter. Nonperforming assets represented 0.45% of total loans and other real estate owned, up from 0.39%, while the allowance for credit losses covered 260.8% of nonperforming loans.

Capital remained above regulatory well-capitalized thresholds. The company reported a common equity Tier 1 ratio of 15.17%, a total risk-based capital ratio of 16.30% and a Tier 1 leverage ratio of 14.12%. Tangible common equity represented 13.12% of tangible assets, and tangible book value per share increased to $27.49 from $26.73 at the end of June.

Available liquidity totaled $826.0 million, including cash, unpledged securities and undrawn credit lines. Adjusted uninsured deposits were $316.3 million, giving the bank liquidity coverage of 2.61 times that amount.

Century Acquisition Expected to Close in November

Bank7 said it has received regulatory and shareholder approvals for its approximately $137 million acquisition of Century Financial and expects the transaction to close on November 1, 2026. The deal will extend the franchise into New Mexico and add roughly $1.2 billion of legacy deposits.

Management expects the combined organization to have approximately $3.3 billion in assets and projects the acquisition will be 25% accretive to earnings per share, based on the transaction assumptions disclosed in September.

Those projections remain subject to uncertainties including the timing of the closing, interest-rate and economic changes, credit quality, loan demand, liquidity conditions, regulatory policy and the accuracy of the transaction’s underlying assumptions. The bank’s loan portfolio also retains notable exposure to hospitality and commercial real estate, while nonperforming-asset and net-charge-off ratios increased modestly during the quarter.