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Bank7 (BSVN)
NASDAQ:BSVN
Risk Overview Q4, 2024
Risk Distribution
55% Finance & Corporate
27% Legal & Regulatory
9% Ability to Sell
9% Macro & Political
0% Tech & Innovation
0% Production
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
This chart displays the stock's most recent risk distribution according to category. TipRanks has identified 6 major categories: Finance & corporate, legal & regulatory, macro & political, production, tech & innovation, and ability to sell.
Risk Change Over Time
S&P500 Average
Sector Average
Risks removed
Risks added
Risks changed
Bank7 Risk Factors
New Risk (0)
Risk Changed (0)
Risk Removed (0)
No changes from previous report
The chart shows the number of risks a company has disclosed. You can compare this to the sector average or S&P 500 average.
The quarters shown in the chart are according to the calendar year (January to December). Businesses set their own financial calendar, known as a fiscal year. For example, Walmart ends their financial year at the end of January to accommodate the holiday season.
The quarters shown in the chart are according to the calendar year (January to December). Businesses set their own financial calendar, known as a fiscal year. For example, Walmart ends their financial year at the end of January to accommodate the holiday season.
Risk Highlights Q4, 2024
Main Risk Category
Finance & Corporate
With 6 Risks
Finance & Corporate
With 6 Risks
Number of Disclosed Risks
11
-14
From last reportS&P 500 Average: 31
11
-14
From last reportS&P 500 Average: 31
Recent Changes
11Risks added
25Risks removed
0Risks changed
Since Dec 2024
11Risks added
25Risks removed
0Risks changed
Since Dec 2024
Number of Risk Changed
0
No changes from last report
S&P 500 Average: 3
0
No changes from last report
S&P 500 Average: 3
See the risk highlights of Bank7 in the last period.
Risk Word Cloud
The most common phrases about risk factors from the most recent report. Larger texts indicate more widely used phrases.
Risk Factors Full Breakdown - Total Risks 11
Finance & Corporate
Total Risks: 6/11 (55%)Below Sector Average
Accounting & Financial Operations3 | 27.3%
Accounting & Financial Operations - Risk 1
Fair Value of Financial InstrumentsAdded
Accounting & Financial Operations - Risk 2
Goodwill and IntangiblesAdded
<div>Goodwill and Intangibles</div>
<div> </div>
<div>Intangible assets totaled $878,000 and goodwill, net of accumulated amortization totaled $8.5 million for the year ended December 31, 2024, compared to intangible assets of $1.0 million and goodwill, net of
accumulated amortization of $8.5 million for the year ended December 31, 2023.</div>
<div> </div>
<div>Goodwill resulting from a business combination represents the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition
date. Goodwill is tested annually for impairment or more frequently if other impairment indicators are present. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written
down to its implied fair value. Subsequent increases in goodwill value are not recognized in the accompanying consolidated financial statements.</div>
<div> </div>
<div>Other intangible assets consist of core deposit intangible assets and are amortized on a straight-line basis based on an estimated useful life of 10 years. Such assets are periodically evaluated as to the
recoverability of their carrying values.</div>
Accounting & Financial Operations - Risk 3
Nonperforming AssetsAdded
<div><span>Nonperforming Assets</span></div>
<div> </div>
<div>Loans are considered delinquent when principal or interest payments are past due 30 days or more. Delinquent loans may remain on accrual status between 30 days and 90 days past due. Loans on
which the accrual of interest has been discontinued are designated as nonaccrual loans. Typically, the accrual of interest on loans is discontinued when principal or interest payments are past due 90 days or when, in the opinion of management,
there is a reasonable doubt as to collectability of the obligation. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Income on a nonaccrual loan is
subsequently recognized only to the extent that cash is received and the loan’s principal balance is deemed collectible. Loans are restored to accrual status when loans become well-secured and management believes full collectability of
principal and interest is probable.</div>
<div> </div>
<div>Loans are evaluated for expected credit losses over their contractual term, reflecting management’s current estimate. Loans placed on nonaccrual status and loan modifications granted to
borrowers experiencing financial difficulty are considered to have elevated credit risk and are carefully considered within our current expected credit loss methodology. Income from loans placed on nonaccrual status continues to be recognized
to the extent cash is received and when the collectability of the loan’s principal balance is reasonably assured. Depending on a particular loan’s risk characteristics, we estimate expected credit losses using methods such as present value of
expected future cash flows discounted at the loan’s effective interest rate, observable market prices for similar assets if available, or the fair value of collateral less estimated costs to sell for collateral-dependent loans. A loan is
considered collateral-dependent when the expected source of repayment is primarily the liquidation of the collateral. Fair value, where utilized, is determined by independent appraisals, typically on an annual basis. Between appraisal periods,
the estimated fair value may be adjusted based on specific events, such as identified deterioration of collateral quality through our credit risk monitoring, or discussions with the borrower indicating the appraised value may no longer reflect
current market conditions. The estimated credit losses are recognized as an allowance for credit losses, which is a valuation account. Changes in the allowance for credit losses, whether increases or decreases, are recorded in current period
earnings as provision for credit losses.</div>
<div> </div>
<div>Real estate we acquire as a result of foreclosure or by deed-in-lieu of foreclosure is classified as other real estate owned, or OREO, until sold, and is initially recorded at fair value less
costs to sell when acquired, establishing a new cost basis.</div>
<div> </div>
<div>Nonperforming loans include nonaccrual loans and loans past due 90 days or more and still accruing interest. Nonperforming assets consist of nonperforming loans plus OREO. Loans accounted for
on a nonaccrual basis were $7.2 million as of December 31, 2024, $18.9 million as of December 31, 2023 and $8.0 million as of December 31, 2022. OREO was $321,000, $0, and $0 as of December 31, 2024, December 31, 2023, and December 31, 2022,
respectively.</div>
<div> </div>
<div>The following table presents information regarding nonperforming assets as of the dates indicated.</div>
<div> </div>
<div>
<table>
... (nonperforming assets table for 2024) ...
</table>
</div>
<div><br>
</div>
<div>
<table>
... (nonperforming assets table for 2023) ...
</table>
</div>
<div><br>
</div>
<div>
<table>
... (nonperforming assets table for 2022) ...
</table>
</div>
<div><br>
</div>
<div>The following tables present an aging analysis of loans as of the dates indicated.</div>
<div> </div>
<div>
<table>
... (aging analysis table for 2024) ...
</table>
</div>
<div><br>
</div>
<div>
<table>
... (aging analysis table for 2023) ...
</table>
</div>
<div><br>
</div>
<div>
<table>
... (aging analysis table for 2022) ...
</table>
</div>
Debt & Financing3 | 27.3%
Debt & Financing - Risk 1
Allowance for Credit LossesAdded
Debt & Financing - Risk 2
Capital RequirementsAdded
<div>Capital Requirements</div>
<div> </div>
<div>The Bank is subject to various regulatory capital requirements administered by the federal and state banking regulators. Failure to meet regulatory capital requirements may result in certain
mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for “prompt corrective
action” (described below), the Bank must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting policies. The capital amounts
and classifications are subject to qualitative judgments by the federal banking regulators about components, risk weightings and other factors. Qualitative measures established by regulation to ensure capital adequacy required the Bank to
maintain minimum amounts and ratios of Common Equity Tier 1, or CET1, capital, Tier 1 capital and total capital to risk-weighted assets and of Tier 1 capital to average consolidated assets, referred to as the “leverage ratio.” For further
information, see “Supervision and Regulation – Regulatory Capital Requirements” and “Supervision and Regulation – Prompt Corrective Action Framework.”</div>
<div> </div>
<div>In the wake of the global financial crisis of 2008 and 2009, the role of capital has become fundamentally more important, as banking regulators have concluded that the amount and quality of
capital held by banking organizations was insufficient to absorb losses during periods of severely distressed economic conditions. The Dodd-Frank Act and banking regulations promulgated by the U.S. federal banking regulators to implement Basel
III have established strengthened capital standards for banks and bank holding companies and require more capital to be held in the form of common stock. In addition, the Basel III regulations implement a concept known as the “capital
conservation buffer.” In general, banks, bank holding companies with more than $3.0 billion in assets and bank holding companies with publicly-traded equity are required to hold a buffer of CET1 capital equal to 2.5% of risk-weighted assets
over each minimum capital ratio in order to avoid being subject to limits on capital distributions (e.g., dividends, stock buybacks, etc.) and certain discretionary bonus payments to executive officers.</div>
<div> </div>
<div>As of December 31, 2024, the FDIC categorized the Bank as “well-capitalized” under the prompt corrective action framework. There have been no conditions or events since December 31, 2024 that
management believes would change this classification.</div>
Debt & Financing - Risk 3
Allowance for Credit LossesAdded
<div>Allowance for Credit Losses</div>
<div> </div>
<div>The allowance is based on management’s estimate of probable losses inherent in the loan portfolio. In the opinion of management, the allowance is adequate to absorb estimated losses in the
portfolio as of each balance sheet date. While management uses available information to analyze losses on loans, future additions to the allowance may be necessary based on changes in economic conditions and changes in the composition of the
loan portfolio. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance. In analyzing the adequacy of the allowance, a comprehensive loan grading system to determine
risk potential in loans is utilized together with the results of internal credit reviews.</div>
<div> </div>
<div>To estimate the allowance for credit losses, the loan portfolio is segmented based on shared risk characteristics, primarily by loan type. Historical credit loss experience for each segment,
adjusted for relevant current conditions and reasonable and supportable forecasts, is a significant input in determining the expected credit losses for each portfolio segment under the current expected credit loss methodology. These historical
loss factors and adjustments are regularly evaluated and updated based on the evolving composition of each loan segment. Other considerations in our current expected credit loss estimation process include current volumes and trends of
delinquencies, nonaccrual loans, levels of bankruptcies, trends in criticized and classified loans, expected losses on real estate secured loans, impact of new credit products and policies, current and forecasted economic conditions,
concentrations of credit risk, and the experience and abilities of our lending personnel in the current environment. In addition to these segment-level estimations, loans with larger balances or unique risk profiles may be further analyzed
based on specific facts and circumstances to refine the overall expected credit loss estimate. This individual analysis helps ensure the allowance for credit losses appropriately reflects the expected losses inherent in the portfolio.
Adjustments to the segment-level or portfolio-level expected credit loss estimates may be necessary when specific loan characteristics warrant a different loss expectation than indicated by the segment risk factors.</div>
Legal & Regulatory
Total Risks: 3/11 (27%)Above Sector Average
Regulation2 | 18.2%
Regulation - Risk 1
Added
Regulation - Risk 2
Added
</div>
<div>The following tables show the contractual maturities of our gross loans as of the periods below:</div>
<div> </div>
<div>
<table>
<tbody><tr>
<td>
<div>Due in One Year or Less</div>
</td>
<td>
<div>Through Five Years</div>
</td>
<td>
<div>Through Fifteen Years</div>
</td>
<td>
<div>Due after Fifteen Years</div>
</td>
<td>
<div>Total</div>
</td>
</tr>
<tr>
<td>
<div>Fixed Rate</div>
</td>
<td>
<div>Fixed Rate</div>
</td>
<td>
<div>Fixed Rate</div>
</td>
<td>
<div>Fixed Rate</div>
</td>
<td>
<div>Total</div>
</td>
</tr>
<tr>
<td>
<div>(Dollars in thousands)</div>
</td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>
<div>Construction & development</div>
</td>
<td>
<div>lt;/div>
</td>
<td>
<div>9,378</div>
</td>
<td>
<div>lt;/div>
</td>
<td>
<div>76,709</div>
</td>
</tr>
<tr>
<td> </td>
<td>
<div>1-4 family real estate</div>
</td>
<td>
<div>lt;/div>
</td>
<td>
<div>15,426</div>
</td>
<td>
<div>20,085</div>
</td>
</tr>
<tr>
<td> </td>
<td>
<div>Commercial real estate – other</div>
</td>
<td>
<div>lt;/div>
</td>
<td>
<div>47,737</div>
</td>
<td>
<div>61,482</div>
</td>
</tr>
<tr>
<td> </td>
<td>
<div>Total commercial real estate</div>
</td>
<td>
<div>lt;/div>
</td>
<td>
<div>72,541</div>
</td>
<td>
<div>158,276</div>
</td>
</tr>
<tr>
<td>
<div>Commercial & industrial</div>
</td>
<td>
<div>lt;/div>
</td>
<td>
<div>36,062</div>
</td>
<td>
<div>lt;/div>
</td>
<td>
<div>263,026</div>
</td>
</tr>
<tr>
<td> </td>
<td>
<div>Agricultural</div>
</td>
<td>
<div>lt;/div>
</td>
<td>
<div>22,768</div>
</td>
<td>
<div>lt;/div>
</td>
</tr>
<tr>
<td> </td>
<td>
<div>Consumer</div>
</td>
<td>
<div>lt;/div>
</td>
<td>
<div>1,661</div>
</td>
<td>
<div>lt;/div>
</td>
</tr>
<tr>
<td> </td>
<td>
<div>Gross loans</div>
</td>
<td>
<div>lt;/div>
</td>
<td>
<div>133,032</div>
</td>
<td>
<div>lt;/div>
</td>
</tr>
</tbody></table>
</div>
<div> </div>
Taxation & Government Incentives1 | 9.1%
Taxation & Government Incentives - Risk 1
Income TaxesAdded
Ability to Sell
Total Risks: 1/11 (9%)Above Sector Average
Sales & Marketing1 | 9.1%
Sales & Marketing - Risk 1
DepositsAdded
Macro & Political
Total Risks: 1/11 (9%)Below Sector Average
Capital Markets1 | 9.1%
Capital Markets - Risk 1
LiquidityAdded
See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.
FAQ
What are “Risk Factors”?
Risk factors are any situations or occurrences that could make investing in a company risky.
The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment.
They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result.
It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.
How do companies disclose their risk factors?
Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process.
Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for “foreign private issuers”.
Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report.
According to the SEC, risk factors should be reported concisely, logically and in “plain English” so investors can understand them.
How can I use TipRanks risk factors in my stock research?
Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing.
You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a company’s risk factors compare to others in its sector.
Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements.
A simplified analysis of risk factors is unique to TipRanks.
What are all the risk factor categories?
TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below.
1. Financial & Corporate
- Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results.
- Share Price & Shareholder Rights – risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing.
- Debt & Financing – risks related to debt, funding, financing and interest rates, financial investments.
- Corporate Activity and Growth – risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances.
2. Legal & Regulatory
- Litigation and Legal Liabilities – risks related to litigation/ lawsuits against the company.
- Regulation – risks related to compliance, GDPR, and new legislation.
- Environmental / Social – risks related to environmental regulation and to data privacy.
- Taxation & Government Incentives – risks related to taxation and changes in government incentives.
3. Production
- Costs – risks related to costs of production including commodity prices, future contracts, inventory.
- Supply Chain – risks related to the company’s suppliers.
- Manufacturing – risks related to the company’s manufacturing process including product quality and product recalls.
- Human Capital – risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation.
4. Technology & Innovation
- Innovation / R&D – risks related to innovation and new product development.
- Technology – risks related to the company’s reliance on technology.
- Cyber Security – risks related to securing the company’s digital assets and from cyber attacks.
- Trade Secrets & Patents – risks related to the company’s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying.
5. Ability to Sell
- Demand – risks related to the demand of the company’s goods and services including seasonality, reliance on key customers.
- Competition – risks related to the company’s competition including substitutes.
- Sales & Marketing – risks related to sales, marketing, and distribution channels, pricing, and market penetration.
- Brand & Reputation – risks related to the company’s brand and reputation.
6. Macro & Political
- Economy & Political Environment – risks related to changes in economic and political conditions.
- Natural and Human Disruptions – risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19.
- International Operations – risks related to the global nature of the company.
- Capital Markets – risks related to exchange rates and trade, cryptocurrency.