Bank7 (BSVN) Q2 2026 earnings summary

Executive summary

• Achieved a $3.7 million net gain from the sale of oil and gas assets, completing the exit from that business line faster than anticipated, and successfully recovered $20.2 million in cash from the sale, exceeding the original outlay.

• Achieved strong core earnings in Q2 2026, with core EPS of $1.06 and core ROAA of 2.20%, and maintained top-tier performance ratios, including a 5-year average ROATCE of 21.4%.

• Maintained strong asset quality, high liquidity, no debt, and robust capital, positioning for organic and M&A-driven growth.

• Outperformed peer group in key profitability and efficiency metrics, with consistent growth in total assets and tangible book value per share.

• Addressed material weaknesses in IT and accounting, incurring higher expenses for remediation and consulting.

Financial highlights

• Q2 2026 net income was $8.35 million, down 24.84% year-over-year; adjusted core net income was $10.18 million.

• Diluted EPS was $0.87, a 25% decrease year-over-year; core EPS was $1.06.

• Total assets reached $1.91 billion, up 4.25% year-over-year; total loans grew 6.7% to $1.60 billion; total deposits increased 2.7% to $1.64 billion.

• Projected Q3 expenses in the $9.5–$9.7 million range, with some Q2 expenses carrying over.

• Net interest margin for Q2 2026 was 4.81%; June NIM was 4.51%; core NIM guidance for Q3 is 4.45%–4.53%.

Outlook and guidance

• Expecting significant loan paydowns in the second half of the year, but a robust loan pipeline should offset these.

• Full-year guidance targets mid-single digit loan growth year-over-year, implying higher growth in the second half.

• Margin expected to remain in the guided range, with potential benefit from a rate hike due to asset sensitivity.

• Maintains a disciplined credit culture and expects continued strong capital and liquidity positions.

• Focus on maximizing productivity and efficiency through high-quality bankers and process discipline.