Updated 3/6/25
Bank7 Corp. (NASDAQ: BSVN) might not be a big-name stock, but it has quietly built a strong foundation in the banking sector. As a regional bank based in Oklahoma, it operates on a smaller scale than the national giants, but its financial performance tells a different story. With solid profitability, a clean balance sheet, and a reasonable dividend, it’s a company that income investors should have on their radar.
For those focused on dividends, the big questions always come down to yield, safety, and growth potential. Let’s take a closer look at how BSVN stacks up.
Key Dividend Metrics
📈 Dividend Yield: 2.24% (trailing), 2.25% (forward)
💰 Annual Dividend: $0.90 per share
📅 Ex-Dividend Date: December 20, 2024
🛡 Payout Ratio: 18.60% (conservative and sustainable)
📊 5-Year Average Dividend Yield: 2.48%
While the yield isn’t the highest in the banking sector, it’s well-supported by strong earnings and a responsible payout strategy.
Dividend Overview
With a current dividend yield of just over 2%, Bank7 isn’t the highest-yielding stock, but it offers something that many high-yield stocks lack—stability. The annual dividend of $0.90 per share is comfortably backed by earnings, and the payout ratio remains below 20%. That’s a good sign for investors who want to avoid the risk of dividend cuts.
Compared to other regional banks, BSVN’s yield sits slightly below its five-year average. That’s not necessarily a bad thing—it often means the stock price has appreciated faster than dividend growth, which suggests confidence in the company’s future earnings.
Dividend Growth and Safety
A strong dividend is only as good as the company behind it. The best way to gauge a dividend’s safety is by looking at earnings, cash flow, and debt. BSVN stands out here.
The company’s latest earnings per share (EPS) came in at $4.84, meaning its dividend is a small fraction of its overall earnings. That leaves plenty of room for future increases without putting financial strain on the business.
One of the biggest positives is BSVN’s zero debt position. That’s rare in the banking sector, where many companies rely on borrowed money to fund operations and expansion. With no debt weighing it down, Bank7 has more flexibility to maintain or grow its dividend, even in tough economic conditions.
Chart Analysis
Trend and Moving Averages
The price action in this chart shows a clear uptrend that accelerated in the second half of the year before hitting a peak and beginning to pull back. The 50-day moving average (orange line) had been acting as support for most of the uptrend but has now rolled over and is sloping downward. This shift suggests that short-term momentum has weakened.
The 200-day moving average (blue line) is still trending upward, indicating that the longer-term trend remains intact. Price is now hovering around this level, meaning this could be a crucial support area. A sustained hold above the 200-day moving average would be a positive sign, while a break below it could indicate a deeper correction.
Volume and Market Participation
Volume has tapered off compared to the higher levels seen during the rally. The lack of strong buying pressure suggests that demand has cooled, which aligns with the declining short-term moving average. There were a few spikes in volume on red days, indicating that some sellers have been more aggressive in recent months. However, the absence of heavy selling volume near the current price level suggests that panic selling hasn’t set in.
Relative Strength Index (RSI)
The RSI sits at approximately 54, which places it in neutral territory. This means the stock isn’t overbought or oversold, leaving room for movement in either direction. Previously, RSI had reached higher levels during the uptrend but has since settled into a more balanced range. If RSI starts trending lower toward 30, it would suggest increasing downside momentum. On the other hand, a move back toward 70 could indicate renewed buying strength.
Recent Price Action and Support Levels
The last few candles show price consolidating near the 200-day moving average. The most recent sessions have had relatively small ranges, indicating indecision. The key levels to watch are the 200-day moving average as immediate support and the 50-day moving average, which may now act as resistance. If price can reclaim the 50-day moving average, it would be a sign that buyers are stepping back in. If the 200-day moving average fails to hold, the next significant area of support is around the $35 level.
Momentum Shift and Possible Scenarios
Momentum has clearly slowed compared to the steep uptrend seen earlier. The current setup suggests the stock is at a crossroads, with the potential to either stabilize and push higher or break support and enter a more extended pullback phase. The direction of the broader market and any upcoming company-specific news could be key catalysts in determining which way price moves next.
Analyst Ratings
📈 Recent Upgrades
🔼 Piper Sandler raised its price target for Bank7 Corp. (BSVN) from $53 to $55, citing strong financial performance and steady earnings growth. Analysts believe the bank’s profitability and operational efficiency continue to support a higher valuation.
🔼 Keefe, Bruyette & Woods maintained an outperform rating but adjusted the price target slightly down from $53 to $52. While this represents a small revision, the firm still sees potential upside based on the bank’s solid fundamentals and strong return on equity.
🎯 Consensus Price Target
💰 The current consensus price target for BSVN stands at $53.50, with estimates ranging between $52 and $55. Given the current stock price of $40.64, analysts anticipate an upside potential of approximately 31.64%.
📊 Reasons for Upgrades and Downgrades
✅ Earnings Strength – Bank7 has delivered solid earnings results, reinforcing confidence in its ability to maintain profitability. Analysts have highlighted strong return on assets (ROA) and return on equity (ROE) as key factors supporting the positive outlook.
✅ Regional Economic Trends – Favorable conditions in the bank’s core markets, including steady loan growth and low credit risks, have contributed to an optimistic stance. Economic stability in its key regions has played a role in sustaining the bank’s outlook.
⚠️ Sector Risks – While the bank remains well-positioned, analysts have also noted potential risks such as interest rate fluctuations, which could impact net interest margins. This factor led to some minor downward adjustments in price targets.
⚠️ Liquidity and Market Volatility – Some concerns have been raised about trading volume and market liquidity, given the stock’s relatively low float. Although not a major red flag, it remains something analysts consider when evaluating future performance.
Overall, while some price targets have been slightly adjusted, the consensus remains optimistic about Bank7 Corp.’s ability to generate consistent returns and maintain a strong financial position.
Earnings Report Summary
Bank7 Corp. (NASDAQ: BSVN) just wrapped up an impressive year, delivering strong financial results that highlight its steady growth and profitability. The bank posted record-breaking numbers across key areas, showing that its strategy is working well even in a changing economic environment.
The big headline from the report is net income, which jumped to $45.7 million, a huge increase from $28.3 million last year. That’s a gain of over 60%, which is no small feat. Earnings per share also got a big boost, climbing to $4.84, up from $3.05. These numbers show that Bank7 is not just growing but doing so in a way that benefits shareholders.
The bank’s total assets came in at $1.7 billion, slightly down from last year’s $1.8 billion, but that appears to be part of a deliberate effort to optimize its balance sheet rather than a sign of trouble. On the lending side, total loans grew modestly, reaching $1.4 billion, showing that the bank is still expanding its loan portfolio in a controlled, sustainable way.
Interest income saw an 8% increase, hitting $131.5 million. That growth reflects both higher lending activity and favorable interest rate conditions. Meanwhile, pre-provision earnings, which measure profitability before accounting for potential loan losses, rose by more than 3%, landing at $60.4 million.
From a financial stability perspective, Bank7 remains in excellent shape. Its capital ratios are well above regulatory requirements, reinforcing its strong foundation. The bank’s Tier 1 leverage ratio, a key measure of financial strength, sits at 12.18%, while its total risk-based capital ratio is at 15.22%. These figures indicate a solid buffer that ensures the company can weather economic uncertainties while still maintaining growth.
CEO Thomas L. Travis expressed confidence in the bank’s direction, pointing to its disciplined cost controls and strong credit quality as key factors behind the strong performance. The slight drop in total assets seems to be part of a broader plan to keep the balance sheet well-matched to market conditions, rather than an area of concern.
Overall, Bank7’s latest earnings report paints a picture of a bank that’s not just holding steady but thriving. With strong profits, a well-managed loan portfolio, and a disciplined financial approach, it remains well-positioned for whatever comes next.
Financial Health and Stability
BSVN’s financials paint a picture of a well-run, highly profitable bank.
- Net profit margin: 46.89%
- Operating margin: 61.86%
- Return on equity (ROE): 23.83%
- Return on assets (ROA): 2.60%
For a regional bank, these numbers are impressive. A net profit margin of nearly 47% suggests that Bank7 is highly efficient at turning revenue into actual profit. ROE at almost 24% is also a standout number, showing that management is putting shareholder capital to good use.
Another key factor is cash. BSVN holds $240.92 million in cash with no debt. That means it has a financial cushion that most banks would envy, allowing it to weather economic downturns without worrying about high-interest debt payments.
Valuation and Stock Performance
Despite its strong financials, BSVN still trades at a relatively low valuation. Its price-to-earnings (P/E) ratio is 8.29, which is lower than many of its peers in the banking sector. Typically, banks of similar size trade at P/E ratios between 10 and 15, so there could be some undervaluation here.
Some additional valuation metrics:
- Price-to-book (P/B) ratio: 1.77
- Price-to-sales (P/S) ratio: 3.89
The stock has had a strong run over the past year, climbing 43.44% from its 52-week low of $26.07. It recently touched a high of $50.26 before pulling back to $40.21. This kind of price action suggests that while there’s been momentum, the stock may be in a consolidation phase, potentially creating an opportunity for investors looking for an entry point.
Risks and Considerations
Like any stock, BSVN comes with its share of risks. While its fundamentals are strong, there are a few things investors should keep in mind.
- Regional Exposure – Unlike national banks, Bank7’s success is closely tied to the economy in Oklahoma and its surrounding markets. If the regional economy takes a hit, loan demand and business activity could slow.
- Interest Rate Sensitivity – Banks benefit from higher interest rates, but if rates drop, net interest margins can shrink. This would impact earnings and, by extension, dividend growth.
- Low Trading Volume – With an average daily trading volume of just over 23,000 shares, liquidity is lower than in larger financial stocks. This means that price movements can be more volatile, especially in times of market uncertainty.
- High Insider Ownership – Over 56% of shares are held by insiders. This can be a double-edged sword. On the one hand, it means management has skin in the game. On the other hand, it also means there are fewer shares available for public trading, which can sometimes lead to price inefficiencies.
- Dividend Track Record – While the payout looks safe now, BSVN doesn’t have the decades-long dividend history that some investors prefer. It’s in a good position for future increases, but it hasn’t yet built the kind of reputation that long-term income investors often seek.
Final Thoughts
Bank7 Corp. is an intriguing stock for dividend investors who value financial strength, profitability, and long-term sustainability over just a high yield.
- The 2.24% yield may not be the most exciting, but it’s sustainable and well-covered by earnings.
- A low payout ratio of 18.6% suggests plenty of room for growth.
- No debt and high profitability make it a strong regional bank with lower-than-average financial risk.
- The stock’s valuation is reasonable, and it has room to move higher based on its earnings power.
For investors looking at smaller banks with solid dividends, Bank7 is a name worth paying attention to. It doesn’t have the longest dividend history, but it’s financially sound and well-positioned for the future.
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