Bank7 Corp (NASDAQ:BSVN), the parent company of Oklahoma City-based Bank7, stock fell 2.67% (As on April 11, 11:17:38 AM UTC-4, Source: Google Finance) after the company posted mixed result for the first quarter of FY25. Uninsured deposits represent 26.85% of total deposits, compared to 28.19% for Q4 2023; adjusted uninsured deposits represent 13.68% of total deposits. The sum of cash plus unpledged securities and undrawn lines-of-credit equals $423.69 million, which significantly exceeds adjusted uninsured deposits of $216 million, a 1.96x coverage. Proven ability to successfully manage NIM in varying interest rate environments as we continue to operate within historical ranges. $1.07 billion or 77.90% of loans reprice in 1 year or less, with $925.35 million or 67.27% repricing daily. AOCI is only $5.69 million; the average investment portfolio duration is ~2.1 years, with $84 million of U.S. Treasuries or 52.91% of the total investment portfolio maturing in Q2 of 2024. Cash, securities, and undrawn lines of credit totaled $423.69 million, providing a 1.96x coverage of adjusted uninsured deposits.
Further, the cost of funds decreased from 2.70% to 2.58%, supporting the net interest margin (NIM). The NIM bottomed out at around 4.60%, and the bank anticipates it to hold up well into the second and third quarters. The Q1 run rate is a good template for Q2, with core fee income and expenses expected to stabilize. The remaining asset value is close to $10 million, with full recovery expected within the next 12 months.
BSVN in the first quarter of FY25 has reported the adjusted earnings per share of $1.08, beating the analysts’ estimates for the adjusted earnings per share of 97 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $22.6 million in the first quarter of FY25, missing the analysts’ estimates for revenue by 3.03%.
On the other hand, the company had recently announce the acquisition of First American Mortgage, Inc., a well-established provider of residential mortgage lending services. This strategic move further enhances Bank7’s mortgage division and illustrates the continued commitment to delivering comprehensive financial solutions to customers across its growing service areas. The acquisition aligns with Bank7’s commitment to growth and innovation, solidifying its position as a leading community-focused financial institution. Customers of both Bank7 and First American Mortgage, Inc. will benefit from the combined expertise, streamlined processes, and expanded network of lending professionals.