Bank7 Corp. (BSVN): Business Model Canvas [11-2024 Updated]
- ✓ Fully Editable: Tailor To Your Needs In Excel Or Sheets
- ✓ Professional Design: Trusted, Industry-Standard Templates
- ✓ Pre-Built For Quick And Efficient Use
- ✓ No Expertise Is Needed; Easy To Follow
Bank7 Corp. (BSVN) Bundle
Understanding the business model of Bank7 Corp. (BSVN) reveals how this community-focused bank thrives in a competitive landscape. With a strong emphasis on personalized banking solutions and robust customer relationships, Bank7 effectively serves its diverse clientele, including small to medium-sized businesses and individual consumers. Explore the intricacies of their key partnerships, activities, and revenue streams below to see how they create value and maintain a sustainable competitive advantage.
Bank7 Corp. (BSVN) - Business Model: Key Partnerships
Collaborations with local businesses
Bank7 Corp. actively collaborates with local businesses to enhance its service offerings and community engagement. This includes partnerships with small and medium-sized enterprises (SMEs) to provide tailored financial products. As of September 30, 2024, the bank has reported total loans of $1.44 billion, with a significant portion allocated to local businesses in sectors such as hospitality and energy, which account for 20% and 12% of gross total loans, respectively.
Partnerships with financial institutions
Bank7 maintains strategic partnerships with various financial institutions to facilitate loan origination and enhance liquidity. The bank participates in the Certificate of Deposit Account Registry Service (CDARS) and the Insured Cash Sweep (ICS) programs, which allow for the distribution of customer deposits across multiple banks, ensuring FDIC insurance coverage. As of September 30, 2024, total deposits stood at $1.52 billion, reflecting the effectiveness of these partnerships in maintaining customer funds.
Engagement with regulatory bodies
Engagement with regulatory bodies is critical for Bank7 to ensure compliance and maintain its operational integrity. As of September 30, 2024, the bank was categorized as "well capitalized" under the regulatory framework for prompt corrective action, with total capital to risk-weighted assets at 14.11%, exceeding the minimum requirement of 8.00%. This strong capital position allows Bank7 to engage effectively with regulators, ensuring that it meets all compliance standards while pursuing growth opportunities.
| Partnership Type | Details | Financial Impact |
|---|---|---|
| Local Businesses | Collaborations to provide tailored financial products | Total loans: $1.44 billion; Hospitality loans: $293.7 million (20% of total loans) |
| Financial Institutions | Participation in CDARS and ICS programs | Total deposits: $1.52 billion |
| Regulatory Bodies | Compliance and engagement with regulatory standards | Capital ratio: 14.11%, exceeding minimum requirements |
Bank7 Corp. (BSVN) - Business Model: Key Activities
Loan origination and underwriting
As of September 30, 2024, Bank7 Corp. reported total loans of $1.44 billion, reflecting an increase of $44.8 million or 3.2% from the previous year. The loan portfolio is diversified across several categories:
| Loan Type | Outstanding Balances (in thousands) | Percentage of Total Loans |
|---|---|---|
| Construction & Development | $157,374 | 10.9% |
| 1-4 Family Real Estate | $115,497 | 8.0% |
| Commercial Real Estate - Other | $536,070 | 37.2% |
| Commercial & Industrial | $547,430 | 38.0% |
| Agricultural | $69,171 | 4.8% |
| Consumer | $14,308 | 1.0% |
The underwriting process emphasizes thorough risk assessment to ensure loan quality and compliance with regulatory standards.
Customer service and relationship management
Bank7 focuses on building strong relationships with its customers, which is crucial for loan origination and retention. The bank operates twelve locations across Oklahoma and the Dallas/Fort Worth area, providing personalized service to business owners and entrepreneurs. Customer service metrics include:
| Metric | Value |
|---|---|
| Total Deposits (as of September 30, 2024) | $1.52 billion |
| Change in Total Deposits (YoY) | -4.4% |
| Net Income (Q3 2024) | $11.8 million |
| Customer Satisfaction Score | Not publicly reported |
Additionally, the bank employs various marketing efforts and community involvement strategies to enhance customer engagement and satisfaction.
Risk assessment and compliance monitoring
Risk management is critical for Bank7, particularly given the diverse nature of its loan portfolio. The bank's risk assessment process includes evaluating the creditworthiness of borrowers, monitoring loan performance, and complying with regulations. As of September 30, 2024, the allowance for credit losses stood at $17.9 million, reflecting the bank's proactive approach to managing potential defaults. Key risk metrics include:
| Risk Metric | Value |
|---|---|
| Allowance for Credit Losses | $17.9 million |
| Nonaccrual Loans | $6.95 million |
| Percentage of Loans > 90 Days Past Due | 0.54% |
Bank7's commitment to compliance is evident through its adherence to regulatory requirements and ongoing monitoring of its risk exposure.
Bank7 Corp. (BSVN) - Business Model: Key Resources
Capital from deposits and equity
As of September 30, 2024, Bank7 Corp. reported total deposits of $1.52 billion, a decrease of 4.4% compared to $1.59 billion as of September 30, 2023. The breakdown of deposits is as follows:
| Type of Deposit | Amount (in thousands) |
|---|---|
| Noninterest-bearing deposits | $322,480 |
| Interest-bearing deposits | $1,201,736 |
| Total Deposits | $1,524,216 |
Bank7's equity as of September 30, 2024, was reported at $204.16 million, an increase from $170.33 million at the end of the previous year. The components are:
| Component | Amount (in thousands) |
|---|---|
| Common Stock | $93 |
| Additional Paid-in Capital | $100,760 |
| Retained Earnings | $107,426 |
| Accumulated Other Comprehensive Loss | ($4,117) |
| Total Shareholders' Equity | $204,162 |
Experienced banking personnel
Bank7 Corp. emphasizes the importance of its human resources by employing a skilled workforce focused on delivering quality banking services. As of September 30, 2024, the bank operates with a total of approximately 200 employees, many of whom have extensive experience in banking and finance.
Technology infrastructure for operations
Bank7 has invested significantly in technology to enhance operational efficiency. As of September 30, 2024, the bank's total assets were valued at $1.74 billion, which includes substantial investments in technology systems, cybersecurity measures, and digital banking platforms. The following table summarizes the technology-related assets:
| Asset Type | Amount (in thousands) |
|---|---|
| Premises and Equipment (net) | $17,126 |
| Interest Receivable and Other Assets | $32,407 |
| Total Assets | $1,740,442 |
Bank7 Corp. (BSVN) - Business Model: Value Propositions
Personalized banking solutions tailored to customers
Bank7 Corp. emphasizes personalized banking solutions to cater to individual customer needs. As of September 30, 2024, Bank7's total loans reached $1.44 billion, with a notable growth of $44.8 million, or 3.2%, compared to the previous year. This growth reflects the bank's commitment to providing customized financial products that meet the specific requirements of their clients.
Competitive interest rates on loans
The bank offers competitive interest rates on loans, enhancing its attractiveness in the market. As of September 30, 2024, the net interest margin was reported at 5.02%, up from 4.87% in the previous year. This increase in margin indicates that Bank7 is effectively managing its interest income relative to its expenses, allowing for more favorable loan rates for customers.
Community-focused financial services
Bank7 is dedicated to community-focused financial services, ensuring that its offerings align with the needs of the communities it serves. As of September 30, 2024, noninterest-bearing demand deposits accounted for 21.2% of total deposits, showcasing the bank's focus on building strong, local relationships. The bank's strategies also include participation in community events and local initiatives, which strengthen its brand recognition and commitment to community welfare.
| Metrics | September 30, 2023 | September 30, 2024 | Change (%) |
|---|---|---|---|
| Total Loans (in billions) | $1.40 | $1.44 | 3.2% |
| Total Deposits (in billions) | $1.59 | $1.52 | -4.4% |
| Net Interest Margin (%) | 4.87% | 5.02% | 3.1% |
| Noninterest-bearing Demand Deposits (%) | 30.4% | 21.2% | -30.4% |
Bank7 Corp. (BSVN) - Business Model: Customer Relationships
Strong emphasis on customer service
Bank7 Corp. places a strong emphasis on customer service, demonstrated through its commitment to providing personalized banking experiences. As of September 30, 2024, the bank reported a pre-tax net income of $15.5 million for the third quarter, reflecting a 51.9% increase from the previous year, which can be attributed to improved customer satisfaction and service quality.
Regular communication through various channels
Bank7 maintains regular communication with its customers through various channels including email, phone, and in-branch consultations. The bank's total deposits as of September 30, 2024, were reported at $1.52 billion, a decrease of 4.4% from the previous year, which indicates a strategic refocus on maintaining existing customer relationships.
Loyalty programs for long-term clients
The bank has implemented loyalty programs aimed at retaining long-term clients. As of September 30, 2024, Bank7's noninterest-bearing demand deposits accounted for 21.2% of total deposits, amounting to $322.5 million, which underscores the effectiveness of their loyalty initiatives. Additionally, the bank actively engages in community involvement to enhance customer loyalty and trust.
| Customer Relationship Strategy | Details | Financial Impact |
|---|---|---|
| Customer Service | Personalized banking experiences | Pre-tax net income of $15.5 million (Q3 2024) |
| Communication | Email, phone, in-branch consultations | Total deposits of $1.52 billion (as of Sept 30, 2024) |
| Loyalty Programs | Retention initiatives for long-term clients | Noninterest-bearing demand deposits of $322.5 million (21.2% of total) |
Bank7 Corp. (BSVN) - Business Model: Channels
Physical branches for in-person banking
Bank7 Corp. operates a total of twelve physical branch locations across Oklahoma, the Dallas/Fort Worth metropolitan area in Texas, and Kansas. These branches serve as essential touchpoints for customers seeking in-person banking services, including account opening, loan applications, and financial consultations.
Online banking platform for convenience
The online banking platform of Bank7 Corp. allows customers to manage their accounts, transfer funds, pay bills, and apply for loans from the comfort of their homes. As of September 30, 2024, total deposits amounted to $1.52 billion, showcasing the importance of digital channels in retaining and attracting customers.
| Deposit Type | Amount (in thousands) | Percentage of Total Deposits |
|---|---|---|
| Noninterest-bearing demand | $322,480 | 21.2% |
| Interest-bearing transaction deposits | $830,558 | 54.4% |
| Savings deposits | $108,258 | 7.1% |
| Time deposits (less than $250,000) | $168,676 | 11.1% |
| Time deposits ($250,000 or more) | $94,244 | 6.2% |
| Total Deposits | $1,524,216 | 100.0% |
Mobile application for on-the-go access
Bank7 Corp.'s mobile application provides customers with on-the-go access to their banking services. The app allows for secure transactions, balance inquiries, and mobile deposits, thereby enhancing customer engagement and convenience. The growing trend in mobile banking is reflected in the bank's efforts to integrate advanced features into their application, appealing to tech-savvy consumers.
Bank7 Corp. (BSVN) - Business Model: Customer Segments
Small to medium-sized businesses
Bank7 Corp. targets small to medium-sized businesses (SMBs) as a primary customer segment. As of September 30, 2024, Bank7 reported that commercial and industrial loans amounted to approximately $547.4 million, constituting about 38.0% of its total loan portfolio. The bank provides tailored financial solutions, including working capital loans, equipment financing, and commercial real estate loans to this segment, which is essential for driving local economic growth.
Individual consumers seeking personal loans
In addition to business clients, Bank7 serves individual consumers looking for personal loans. As of September 30, 2024, the consumer loan portfolio was valued at $14.3 million, representing 1.0% of the total loans. The bank offers various personal lending options, including unsecured loans, auto loans, and home equity lines of credit, catering to the financial needs of individuals within its service areas.
Agricultural sector clients
Bank7 also focuses on the agricultural sector, which is a significant part of its customer base. The bank's agricultural loans totaled $69.2 million as of September 30, 2024, accounting for 4.8% of the total loan portfolio. These loans support farmers and agribusinesses through financing for equipment, land purchases, and operational costs, reflecting the bank’s commitment to serving the rural economy.
| Customer Segment | Loan Amount (in millions) | Percentage of Total Loans |
|---|---|---|
| Small to Medium-Sized Businesses | $547.4 | 38.0% |
| Individual Consumers | $14.3 | 1.0% |
| Agricultural Sector Clients | $69.2 | 4.8% |
| Total Loans | $1,439.9 | 100% |
Bank7 Corp. (BSVN) - Business Model: Cost Structure
Operational costs for branch maintenance
As of September 30, 2024, Bank7 Corp. reported total occupancy costs of approximately $1.985 million for the nine months ended. This includes expenses for maintaining its branch locations across Oklahoma and Texas, which are critical for its customer service operations .
Personnel expenses for staff salaries and benefits
The total salaries and employee benefits for Bank7 Corp. were approximately $15.740 million for the nine months ended September 30, 2024, reflecting a 10.08% increase from the previous year . For the three months ended September 30, 2024, personnel expenses were reported at $5.333 million .
Marketing and advertising expenditures
Bank7 Corp. allocated approximately $358,000 for advertising and public relations in the nine months ended September 30, 2024, compared to $273,000 in the same period in 2023, marking an increase of 31.14% . Additionally, accounting, marketing, and legal fees totaled approximately $582,000 for the nine months .
| Expense Type | Amount (Q3 2024) | Amount (Q3 2023) | Percentage Change |
|---|---|---|---|
| Occupancy Costs | $1.985 million | Not specified | Not applicable |
| Salaries and Employee Benefits | $15.740 million | $14.299 million | 10.08% |
| Advertising and Public Relations | $358,000 | $273,000 | 31.14% |
| Accounting, Marketing, and Legal Fees | $582,000 | $491,000 | 18.53% |
Overall, Bank7 Corp. continues to focus on managing its cost structure efficiently, balancing operational maintenance, personnel expenses, and marketing investments to support its growth strategy .
Bank7 Corp. (BSVN) - Business Model: Revenue Streams
Interest income from loans
As of September 30, 2024, Bank7 Corp. reported total loans of $1.44 billion, an increase of $44.8 million or 3.2% from September 30, 2023. Interest income from loans, including fees, for the three months ended September 30, 2024, was $30.79 million, compared to $28.88 million for the same period in 2023. For the nine months ended September 30, 2024, interest income from loans totaled $89.83 million, up from $81.12 million in 2023.
| Period | Interest Income from Loans (in million) | Total Loans Outstanding (in billion) |
|---|---|---|
| Q3 2024 | $30.79 | $1.44 |
| Q3 2023 | $28.88 | $1.40 |
| 9M 2024 | $89.83 | $1.44 |
| 9M 2023 | $81.12 | $1.40 |
Fees from banking services
Bank7 Corp. generated noninterest income of $8.85 million for the nine months ending September 30, 2024, compared to $2.47 million for the same period in 2023, reflecting an increase of 258.1%. Service charges on deposit accounts contributed $742,000 for the nine months ended September 30, 2024, up from $647,000 in the same period in 2023. Other income and fees surged to $7.88 million in 2024, compared to $1.67 million in 2023.
| Period | Noninterest Income (in million) | Service Charges on Deposit Accounts (in thousand) | Other Income and Fees (in million) |
|---|---|---|---|
| 9M 2024 | $8.85 | $742 | $7.88 |
| 9M 2023 | $2.47 | $647 | $1.67 |
Investment income from securities and deposits
Bank7 Corp. reported total interest income from various securities and deposits for the three months ended September 30, 2024, amounting to $33.49 million, compared to $31.72 million in 2023. This includes interest-bearing time deposits, taxable debt securities, and tax-exempt debt securities. For the nine months ended September 30, 2024, total interest income reached $99.21 million, an increase from $89.14 million in the previous year.
| Period | Total Interest Income (in million) | Interest from Securities (in million) |
|---|---|---|
| Q3 2024 | $33.49 | $3.08 |
| Q3 2023 | $31.72 | $3.05 |
| 9M 2024 | $99.21 | $8.82 |
| 9M 2023 | $89.14 | $7.98 |
Updated on 16 Nov 2024
Resources:
- Bank7 Corp. (BSVN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Bank7 Corp. (BSVN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Bank7 Corp. (BSVN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.