Bank7 Corp. (BSVN): Marketing Mix Analysis [11-2024 Updated]
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Bank7 Corp. (BSVN) Bundle
In the competitive landscape of banking, understanding the Four P's of Marketing—Product, Place, Promotion, and Price—is essential for success. Bank7 Corp. (BSVN) has strategically crafted its offerings to meet customer needs and enhance its market position. From a diverse range of deposit products to a robust promotional strategy, the bank focuses on building strong relationships within its local and regional markets. Dive deeper to explore how Bank7 is leveraging its marketing mix to drive growth and customer engagement in 2024.
Bank7 Corp. (BSVN) - Marketing Mix: Product
Range of Deposit Products
Bank7 Corp. offers a comprehensive suite of deposit products, including demand deposit accounts (DDAs). As of September 30, 2024, total deposits were approximately $1.52 billion, reflecting a decrease of $69.4 million, or 4.4%, compared to the previous year.
Interest-Bearing Products
The bank provides various interest-bearing products, such as savings accounts and certificates of deposit (CDs). These offerings are designed to attract customers looking for yield on their deposits, supporting the bank's overall deposit gathering strategy.
Noninterest-Bearing Demand Deposit Accounts
Bank7 emphasizes noninterest-bearing demand deposit accounts through cross-selling strategies. This approach not only enhances customer loyalty but also contributes to the bank's funding base, allowing for lower cost of funds compared to interest-bearing liabilities.
Loan Production and Customer Referrals
The bank engages in loan production and actively seeks customer referrals to bolster deposit gathering. As of September 30, 2024, total loans stood at approximately $1.44 billion, marking an increase of $44.8 million, or 3.2%, from the previous year.
CDARS and ICS Programs
Bank7 participates in the Certificate of Deposit Account Registry Service (CDARS) and the Insured Cash Sweep (ICS) programs. These services enable the bank to manage large deposits effectively while ensuring that customer funds remain within the FDIC insurance limits.
Loan Portfolio Composition
The total loan portfolio as of September 30, 2024, includes various categories:
| Loan Category | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial Real Estate | $536,070 | 37.2% |
| Commercial & Industrial | $547,430 | 38.0% |
| Agricultural | $69,171 | 4.8% |
| Consumer | $14,308 | 1.0% |
| 1-4 Family Real Estate | $115,497 | 8.0% |
| Construction & Development | $157,374 | 11.0% |
This diversified loan portfolio illustrates the bank's commitment to serving a broad range of sectors and customer needs.
Bank7 Corp. (BSVN) - Marketing Mix: Place
Operates twelve branch locations for direct customer service.
Bank7 Corp. operates a total of 12 branch locations strategically situated in Oklahoma, the Dallas/Fort Worth metropolitan area, and Kansas. These locations are designed to provide direct customer service and facilitate face-to-face interactions with clients, enhancing customer relationships and trust.
Offers online banking services through a user-friendly website.
In addition to its physical branches, Bank7 provides online banking services through a user-friendly website, allowing customers to perform transactions, manage accounts, and access banking services from anywhere at any time. This dual-channel approach maximizes accessibility for customers.
Engages with community networks for increased visibility and customer outreach.
Bank7 actively engages with local community networks to increase its visibility and outreach. Such collaborations help in building relationships with potential customers and reinforcing its presence in the market, particularly in the local and regional markets.
Uses loan production strategies to enhance deposit acquisition.
To enhance deposit acquisition, Bank7 employs loan production strategies that include cross-selling deposit products during the loan origination process. This approach not only boosts deposits but also helps in nurturing long-term customer relationships.
Geographic focus primarily on local and regional markets to build customer relationships.
Bank7's geographic focus is primarily on local and regional markets, which allows the bank to build strong customer relationships and cater to the specific financial needs of its communities. This localized strategy is essential for customer retention and satisfaction.
| Branch Locations | States | Online Services |
|---|---|---|
| 12 | Oklahoma, Texas, Kansas | Available |
| Deposits Overview | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Deposits | $1.52 billion | $1.59 billion |
| Noninterest-bearing Demand Deposits | $322.48 million (21.2%) | $482.35 million (30.4%) |
| Interest-bearing Transaction Deposits | $830.56 million (54.4%) | $702.15 million (44.1%) |
| Savings Deposits | $108.26 million (7.1%) | $150.12 million (9.4%) |
| Time Deposits (<$250,000) | $168.68 million (11.1%) | $168.69 million (10.6%) |
| Time Deposits (≥$250,000) | $94.24 million (6.2%) | $88.09 million (5.5%) |
Bank7 Corp. (BSVN) - Marketing Mix: Promotion
Utilizes targeted marketing efforts to promote deposit products and services
Bank7 Corp. employs targeted marketing strategies to enhance the visibility of its deposit products, including savings accounts and certificates of deposit. As of September 30, 2024, total deposits amounted to $1.52 billion, reflecting a decrease of 4.4% from the previous year. The bank focuses on gathering noninterest-bearing demand deposit accounts through various marketing efforts and community engagement initiatives.
Engages in community involvement to raise brand awareness
Community involvement is a cornerstone of Bank7's promotional strategy. The bank actively participates in local events and initiatives to foster relationships and enhance brand recognition. This grassroots approach not only improves visibility but also builds trust within the community, which is vital for attracting new customers and retaining existing ones.
Employs customer referrals as a key promotional strategy
Customer referrals play a significant role in Bank7's marketing efforts. The bank encourages its existing customer base to refer new clients by offering incentives. This strategy has proven effective in driving new business, as satisfied customers are often the best advocates for the bank's services.
Invests in advertising and public relations to enhance market presence
In 2024, Bank7 reported an increase in its advertising and public relations expenditures, totaling $129,000 for the third quarter, which is a 74.3% increase compared to $74,000 in the same period last year. This investment in advertising is aimed at strengthening its market presence and reaching a broader audience through various media channels.
Reports significant increases in noninterest income, indicating successful promotional activities
Bank7 has experienced substantial growth in noninterest income, reporting $8.9 million for the nine months ended September 30, 2024, compared to $2.5 million for the same period in 2023, marking an impressive 258.1% increase. This surge is largely attributed to successful promotional activities and the operation of newly acquired oil and gas assets, reflecting the effectiveness of the bank's marketing strategies.
| Category | Q3 2024 Amount (in $) | Q3 2023 Amount (in $) | Percentage Change |
|---|---|---|---|
| Total Deposits | 1,524,216 | 1,591,391 | -4.4% |
| Advertising and Public Relations Expense | 129,000 | 74,000 | +74.3% |
| Noninterest Income | 8,852,000 | 2,472,000 | +258.1% |
Bank7 Corp. (BSVN) - Marketing Mix: Price
Competitive interest rates on deposit accounts to attract customers
Bank7 Corp. offers competitive interest rates on its deposit accounts. As of September 30, 2024, the rates for interest-bearing transaction deposits were approximately 4.10%, while time deposits had rates around 4.71%.
Offers various pricing structures for loans based on risk assessment
The company provides different pricing structures for its loans, reflecting a thorough risk assessment strategy. The average loan yield reported was 8.66% for total loans as of September 30, 2024. This yield incorporates various loan types, including commercial and industrial loans, which made up a significant portion of the portfolio.
Adjusts fees for services like account maintenance and transaction processing
Bank7 adjusts its fees for services such as account maintenance and transaction processing to remain competitive. For instance, service charges on deposit accounts totaled $742,000 for the nine months ended September 30, 2024, indicating a focus on maintaining a balance between service fees and customer retention.
Focuses on maintaining a balance between interest income and competitive pricing
The bank's strategy emphasizes balancing interest income with competitive pricing. The net interest margin was reported at 5.10% as of September 30, 2024, demonstrating effective pricing strategies that align with market conditions.
Reports a net interest margin of 5.10% as of September 30, 2024, indicating effective pricing strategies
The net interest margin of 5.10% signifies that Bank7 has successfully implemented pricing strategies that not only attract customers but also optimize profitability.
| Category | Amount | Percentage of Total |
|---|---|---|
| Total Loans | $1.44 billion | 100% |
| Commercial and Industrial Loans | $547.4 million | 38.0% |
| Net Interest Margin | 5.10% | N/A |
| Average Loan Yield | 8.66% | N/A |
| Service Charges on Deposit Accounts | $742,000 | N/A |
In summary, Bank7 Corp. (BSVN) effectively leverages its marketing mix to enhance its competitive edge in the banking sector. By offering a diverse range of products tailored to customer needs, maintaining a strong presence through multiple branches and online services, executing targeted promotional strategies, and implementing competitive pricing structures, the bank is poised for continued growth and customer loyalty in 2024. This strategic approach not only attracts deposits but also supports its robust loan portfolio, positioning Bank7 as a key player in its markets.
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.