Bank7 Corp. 10-K

Item 8 . Financial Statements and Supplementary Data Consolidated Financial Statements Index Page Report of RSM US LLP, Independent Registered Public Accounting Firm for the year ended December 31, 2025 (PCAOB ID: 49 ) 44 Report of Forvis Mazars, LLP, Independent Registered Public Accounting Firm for the years ended December 31, 2024 and 2023 (PCAOB ID: 686) 47 Consolidated Financial Statements: Consolidated Balance Sheets at December 31, 2025 and 2024 48 Consolidated Statements of Comprehensive Income for each of the three years in the period ended December 31, 2025 49 Consolidated Statements of Shareholders’ Equity for each of the three years in the period ended December 31, 2025 50 Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2025 51 Notes to Consolidated Financial Statements 52 43 Table of Contents Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Bank7 Corp. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheet of Bank7 Corp. and its subsidiaries (the Company) as of December 31, 2025, the related consolidated statements of comprehensive income, shareholders’ equity and cash flows for the year ended December 31, 2025, and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. Our report dated March 16, 2026 expressed an opinion that the Company had not maintained effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 44 Table of Contents Allowance for Credit Losses – Loans As discussed in Notes 1 and 5 to the consolidated financial statements, the Company’s allowance for credit losses on loans was $19.4 million as of December 31, 2025. The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The methodology for estimating the amount of credit losses reported in the allowance for credit losses has two basic components: an asset-specific component involving loans that do not share risk characteristics and the measurement of expected credit losses for such individual loans and a pooled component for expected credit losses for pools of loans that share similar risk characteristics. A discounted cash flow (“DCF”) methodology is utilized to calculate expected cash flows for the life of each individual loan, with the exception of consumer segment loans. The discounted present value of expected cash flow is then compared to the loan’s amortized cost basis to determine the credit loss estimate. Individual loan results are aggregated at the pool level in determining total reserves for each loan pool. The primary inputs used to calculate expected cash flows include historical loss rates which reflect probability of default (“PD”) and loss given default (“LGD”), and prepayment rates. The historical look-back period is a key factor in the calculation of the PD rate and is based on management’s assessment of current and forecasted conditions and may vary by loan pool. LGD rates generally reflect the historical average net loss rate by loan pool. Expected cash flows are further adjusted to incorporate the impact of loan prepayments which will vary by loan segment and interest rate conditions. Adjustments are made to incorporate the impact of forecasted conditions across all loan segments. The Company utilizes a 12-month reasonable and supportable forecast period, followed by a 12-month reversion period where loss rates revert to the historical average on a straight-line basis. The length of the forecast and reversion periods are periodically evaluated and based on management’s assessment of current and forecasted conditions. For purposes of developing a reasonable and supportable assessment of future conditions, management utilizes established industry and economic data points and sources, including forecasts for the national unemployment rate and gross domestic product growth from the Federal Open Market Committee. PD rates for the forecast period will be adjusted accordingly based on management’s assessment of future conditions. Loss rates are further adjusted to account for other risk factors that impact loan defaults and losses. These basis point adjustments are based on management’s assessment of trends and conditions that impact credit risk and resulting credit losses, more specifically internal and external factors that are independent of and not reflected in the quantitative loss rate calculations. Risk factors management considers in this assessment include trends in underwriting standards, nature/volume/terms of loan originations, past due loans, loan review systems, collateral valuations, concentrations, legal/regulatory/political conditions, and the unforeseen impact of natural disasters. The evaluation of these qualitative factors and forecasts requires that management make significant judgements and are highly sensitive to changes in significant assumptions. We identified the qualitative factors and forecasts applied to the allowance for credit losses on loans as a critical audit matter because auditing the forecasts and qualitative factors required a high degree of auditor judgment, as the estimate is highly sensitive to changes in significant assumptions. 45 Table of Contents Our audit procedures related to the forecasts and qualitative factors applied to the allowance for credit losses on loans included the following, among others: • We tested management’s process and evaluated the reasonableness of their judgements and assumptions to develop the qualitative factors and forecasts, which included: o Testing the relevancy, accuracy and consistency of the data inputs used by management as a basis for the adjustments for qualitative factors and supportable forecasts by comparing to internal and external independently sourced data, including data related to current and forecasted periods. o Evaluating the magnitude and directional consistency of the adjustments with data points and trends in the loan portfolio, economic observations and other internal and external data inputs. o Evaluating whether management’s conclusions were consistent with Company provided internal data and external, independently sourced data and recalculating the adjustments and agreeing the calculated adjustments to the allowance calculation. /s/ RSM US LLP We have served as the Company’s auditor since 2025. Dallas, Texas March 16, 2026 46 Table of Contents Report of Independent Registered Public Accounting Firm Shareholders, Board of Directors, and Audit Committee Bank7 Corp. Oklahoma City, Oklahoma Opinion on the Financial Statements We have audited the accompanying consolidated balance sheet of Bank7 Corp. (“Company”) as of December 31, 2024, the related consolidated statements of comprehensive income, shareholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2024, and the related notes (collectively referred to as the “financial statements”). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. We served as the Company’s auditor from 2013 to 2025. /s/ Forvis Mazars, LLP Oklahoma City, Oklahoma March 12, 2025 47 Table of Contents Bank7 Corp. Consolidated Balance Sheets (Dollar amounts in thousands, except par value and share data) December 31, Assets 2025 2024 Cash and due from banks $ 244,635 $ 234,196 Interest-bearing time deposits in other banks 10,457 6,719 Available-for-sale debt securities (amortized cost of $ 57,316 and $ 66,445 at December 31, 2025 and December 31, 2024, respectively) 54,019 59,941 Loans, net of allowance for credit losses of $ 19,407 and $ 17,918 at December 31, 2025 and December 31, 2024, respectively 1,587,024 1,379,465 Loans held for sale 2,078 - Premises and equipment, net 21,884 18,137 Nonmarketable equity securities 1,165 1,283 Core deposit intangibles 752 878 Goodwill 11,208 8,458 Interest receivable and other assets 30,418 30,731 Total assets $ 1,963,640 $ 1,739,808 Liabilities and Shareholders’ Equity Deposits Noninterest-bearing $ 341,416 $ 313,258 Interest-bearing 1,359,417 1,202,213 Total deposits 1,700,833 1,515,471 Income taxes payable 594 77 Interest payable and other liabilities 11,218 11,047 Total liabilities 1,712,645 1,526,595 Shareholders’ equity Common stock, $ 0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,462,656 and 9,390,211 at December 31, 2025 and December 31, 2024, respectively 95 94 Additional paid-in capital 103,739 101,809 Retained earnings 149,707 116,281 Accumulated other comprehensive loss ( 2,546 ) ( 4,971 ) Total shareholders’ equity 250,995 213,213 Total liabilities and shareholders’ equity $ 1,963,640 $ 1,739,808 See accompanying notes to Consolidated Financial Statements 48 Table of Contents Bank7 Corp. Consolidated Statements of Comprehensive Income (Dollar amounts in thousands, except share and per share data) Year ended December 31, 2025 2024 2023 Interest Income Loans, including fees $ 117,513 $ 119,416 $ 109,843 Interest-bearing time deposits in other banks 564 785 519 Debt securities, taxable 1,085 2,531 2,791 Debt securities, tax-exempt 246 273 330 Other interest and dividend income 9,350 8,535 8,061 Total interest income 128,758 131,540 121,544 Interest Expense Deposits 40,885 45,345 38,998 Total interest expense 40,885 45,345 38,998 Net Interest Income 87,873 86,195 82,546 Provision for Credit Losses 700 - 21,145 Net Interest Income After Provision for Credit Losses 87,173 86,195 61,401 Noninterest Income Mortgage lending income 1,326 370 331 Loss on sales, prepayments, and calls of available-for-sale debt securities ( 10 ) ( 6 ) ( 16 ) Service charges on deposit accounts 941 975 869 Other 6,246 9,915 8,058 Total noninterest income 8,503 11,254 9,242 Noninterest Expense Salaries and employee benefits 22,634 20,783 17,385 Furniture and equipment 1,278 1,070 995 Occupancy 2,580 2,640 2,689 Data and item processing 2,128 1,897 1,730 Accounting, marketing and legal fees 757 836 543 Regulatory assessments 814 1,196 1,537 Advertising and public relations 917 549 427 Travel, lodging and entertainment 439 431 374 Other 7,364 7,693 7,740 Total noninterest expense 38,911 37,095 33,420 Income Before Taxes 56,765 60,354 37,223 Income tax expense 13,696 14,656 8,948 Net Income $ 43,069 $ 45,698 $ 28,275 Earnings per common share - basic $ 4.56 $ 4.92 $ 3.09 Earnings per common share - diluted 4.50 4.84 3.05 Weighted average common shares outstanding - basic 9,444,105 9,290,051 9,161,565 Weighted average common shares outstanding - diluted 9,574,190 9,447,751 9,264,307 Other Comprehensive Income Unrealized gains on securities, net of tax expense of $ 784 , $ 335 and $ 1 million for the years ended December 31, 2025, 2024, and 2023, respectively $ 2,417 $ 1,169 $ 3,146 Reclassification adjustment for realized losses included in net income net of tax of $ 2 , $ 1 and $ 4 for the years ended December 31, 2025, 2024, and 2023, respectively 8 5 12 Other comprehensive income $ 2,425 $ 1,174 $ 3,158 Comprehensive Income $ 45,494 $ 46,872 $ 31,433 See accompanying notes to Consolidated Financial Statements 49 Table of Contents Bank7 Corp. Consolidated Statements of Shareholders’ Equity (Dollar amounts in thousands, except share and per share data) Year Ended December 31, 2025 2024 2023 Common Stock (Shares) Balance at beginning of period 9,390,211 9,197,696 9,131,973 Exercise of employee stock options 9,313 144,813 28,423 Shares issued for restricted stock units 92,396 68,578 57,354 Shares acquired and retired ( 29,264 ) ( 20,876 ) ( 20,054 ) Balance at end of period 9,462,656 9,390,211 9,197,696 Common Stock (Amount) Balance at beginning of period $ 94 $ 92 $ 91 Net shares purchased and retired for restricted stock units and issued for stock options 1 2 1 Balance at end of period $ 95 $ 94 $ 92 Additional Paid-in Capital Balance at beginning of period $ 101,809 $ 97,417 $ 95,263 Shares purchased and retired for restricted stock units ( 1,277 ) ( 666 ) ( 513 ) Exercise of stock options 145 2,591 503 Stock-based compensation expense 3,062 2,467 2,164 Balance at end of period $ 103,739 $ 101,809 $ 97,417 Retained Earnings Balance at beginning of period $ 116,281 $ 78,962 $ 58,049 Net income 43,069 45,698 28,275 Cumulative effect of change in accounting principle, net of tax of $ 178 - - ( 572 ) Cash dividends declared ($ 1.02 , $ 0.89 and $ 0.74 per share for the years ended December 31, 2025, 2024, and 2023, respectively) ( 9,643 ) ( 8,379 ) ( 6,790 ) Balance at end of period $ 149,707 $ 116,281 $ 78,962 Accumulated Other Comprehensive Loss Balance at beginning of period $ ( 4,971 ) $ ( 6,145 ) $ ( 9,303 ) Comprehensive income 2,425 1,174 3,158 Balance at end of period $ ( 2,546 ) $ ( 4,971 ) $ ( 6,145 ) Total Shareholders’ equity $ 250,995 $ 213,213 $ 170,326 See accompanying notes to Consolidated Financial Statements 50 Table of Contents Bank7 Corp. Consolidated Statements of Cash Flows (Dollar amounts in thousands) Year Ended December 31 2025 2024 2023 Operating Activities Net income $ 43,069 $ 45,698 $ 28,275 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 1,119 1,057 1,302 Provision for credit losses 700 - 21,145 Amortization (Accretion) of premiums and discounts on securities 198 ( 766 ) 381 Gain on sales of loans held for sale ( 1,326 ) ( 370 ) ( 331 ) Net loss on sale of available-for-sale debt securities 10 6 16 Stock-based compensation expense 3,062 2,467 2,164 Gain on sale of premises and equipment - ( 120 ) ( 77 ) Cash receipts from the sale of loans originated for sale 52,230 20,452 10,535 Cash disbursements for loans originated for sale ( 52,982 ) ( 19,364 ) ( 10,922 ) Deferred income tax expense ( 344 ) ( 144 ) ( 1,259 ) Changes in Interest receivable and other assets 13 5,277 ( 2,536 ) Interest payable and other liabilities 387 853 432 Net cash provided by operating activities 46,136 55,046 49,125 Investing Activities Net cash paid for acquisition ( 2,750 ) - ( 16,482 ) Maturities of interest-bearing time deposits in other banks 11,691 19,461 8,471 Purchases of interest-bearing time deposits in other banks ( 15,429 ) ( 8,501 ) ( 20,676 ) Maturities, prepayments and calls of available-for-sale debt securities 8,923 195,692 7,422 Purchases of available-for-sale debt securities - ( 83,877 ) - Net change in loans ( 208,399 ) ( 38,638 ) ( 106,762 ) Purchases of premises and equipment ( 4,740 ) ( 4,197 ) ( 2,834 ) Proceeds from sale of premises and equipment - 218 78 Purchase of nonmarketable equity securities ( 40 ) - ( 74 ) Proceeds from sale of nonmarketable equity securities 158 - - Net cash (used in) provided by investing activities ( 210,586 ) 80,158 ( 130,857 ) Financing Activities Net change in deposits 185,362 ( 75,920 ) 159,991 Cash dividends paid ( 9,342 ) ( 8,057 ) ( 6,323 ) Shares purchased and retired for restricted stock units ( 1,277 ) ( 666 ) ( 513 ) Net settlement of stock options 145 2,591 503 Common stock issued for restricted stock units 1 2 1 Net cash provided by (used in) financing activities 174,889 ( 82,050 ) 153,659 Net Increase in Cash and Due from Banks 10,439 53,154 71,927 Cash and Due from Banks, Beginning of Period 234,196 181,042 109,115 Cash and Due from Banks, End of Period $ 244,635 $ 234,196 $ 181,042 Supplemental Disclosure of Cash Flows Information Interest paid $ 40,949 $ 45,565 $ 37,935 Income taxes paid $ 13,714 $ 15,059 $ 10,800 Dividends declared and not paid $ 2,555 $ 2,254 $ 1,932 Measurement period goodwill adjustment $ - $ - $ ( 146 ) See accompanying notes to Consolidated Financial Statements 51 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Note 1: Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Bank7 Corp. (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly owned subsidiary, Bank7 (the “Bank”). The Bank is primarily engaged in providing a full range of banking and financial services to individual and corporate customers located in Oklahoma, Texas, and Kansas. The Bank is subject to competition from other financial institutions. The Company is subject to the regulation of certain federal agencies and undergoes periodic examinations by those regulatory authorities. Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, the Bank and its three subsidiaries: First American Mortgage, LLC, which provides residential mortgage lending services, 1039 NW 63rd, LLC, which holds real estate utilized by the Bank, and Giddings Production, LLC, which is engaged in the production of oil, natural gas and natural gas liquid (“NGL”) reserves in Texas. All significant intercompany accounts and transactions have been eliminated in consolidation. Management has refined the presentation of the Fair Value disclosure footnote for financial instruments not recorded at fair value. Specifically, the 2024 comparative disclosures for financial instruments not recorded at fair value have been refined to enhance clarity. These refinements had no impact on previously reported total assets, total liabilities, shareholders’ equity, or net income. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses. Cash and due from banks The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents may include deposits held at Federal Home Loan Banks, which are not insured by the FDIC. Interest-Bearing Time Deposits in Other Banks Interest-bearing time deposits in other banks totaled $ 10.5 million and $ 6.7 million at December 31, 2025 and December 31, 2024, respectively, and have original maturities generally ranging from three months to five years . All of these deposits were fully insured under FDIC limits at December 31, 2025 and December 31, 2024. Available-for-Sale Debt Securities Available-for-sale debt securities are carried at fair value with unrealized gains and losses excluded from earnings and reported separately in other comprehensive income, except for the credit-related impairment, as discussed in the following section. The Company currently has no securities designated as trading or held-to-maturity. Interest income is recognized at the coupon rate adjusted for amortization and accretion of premiums and discounts. Discounts are accreted into interest income over the estimated life of the related security and premiums are amortized against income to the earlier of the call date or weighted average life of the related security using the interest method. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. They are included in noninterest income or expense and, when applicable, are reported as a reclassification adjustment in other comprehensive income (loss). 52 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Allowance for Credit Losses – Investment Securities On January 1, 2023, the Company was required to adopt a new credit loss methodology, the Current Expected Credit Losses (“CECL”) methodology. Allowance for Credit Losses – Available for Sale (“AFS”) Securities - The Company evaluates its available-for-sale securities portfolio on a quarterly basis for potential credit-related impairment. The Company assesses potential credit impairment by comparing the fair value of a debt security to its amortized cost basis. If the fair value of a debt security is greater than the amortized cost basis, no impairment is recognized. If the fair value is less than the amortized costs basis, the Company reviews the factors to determine if the impairment is credit-related or noncredit-related. For debt securities the Company intends to sell or is more likely than not required to sell, before the recovery of their amortized cost basis, the difference between fair value and amortized cost is impaired and is recognized through earnings. For debt securities the Company does not intend to sell and is not more likely than not required to sell, prior to expected recovery of amortized cost basis, the credit portion of the impairment is recognized through earnings, with a corresponding entry to an allowance for credit losses, and the noncredit portion is recognized through accumulated other comprehensive loss. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, and net deferred loan fees and costs. Accrued interest receivable totaled $ 8.8 million and $ 8.8 million at December 31, 2025 and December 31, 2024, respectively, and was reported in interest receivable and other assets on the consolidated balance sheets. The Company has made the accounting policy election to exclude accrued interest receivable on loans from the estimate of credit losses. Interest income is accrued on the unpaid principal balance using the simple-interest method on the daily balances of the principal amounts outstanding. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized over the respective term of the loan. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past-due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans acquired through business combinations are required to be carried at fair value as of the date of the combination. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date. Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon the sale of the loan. 53 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Allowance for Credit Losses On January 1, 2023, the Company was required to adopt a new credit loss methodology, the Current Expected Credit Losses (“CECL”) methodology. The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The allowance for credit losses is adjusted by a credit loss provision which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Expected credit loss inherent in non-cancellable off-balance sheet credit exposures is accounted for as a separate liability included in other liabilities. The allowance for credit losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay and estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The methodology for estimating the amount of credit losses reported in the allowance for credit losses has two basic components: an asset-specific component involving loans that do not share risk characteristics and the measurement of expected credit losses for such individual loans; and a pooled component for expected credit losses for pools of loans that share similar risk characteristics. Loans That Do Not Share Risk Characteristics (Individually Analyzed) Loans that do not share similar risk characteristics are evaluated on an individual basis. Loans deemed to be collateral dependent have differing risk characteristics and are individually analyzed to estimate the expected credit loss. A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is dependent on the operation or liquidation and sale of the underlying collateral. For collateral dependent loans where foreclosure is probable, the expected credit loss is measured based on the difference between the fair value of the collateral (less selling cost) and the amortized cost basis of the asset. For collateral dependent loans where foreclosure is not probable, the Company has elected the practical expedient allowed by ASC 326-20 to measure the expected credit loss under the same approach as those loans where foreclosure is probable. For loans the fair value of the collateral is obtained through independent appraisal or internal valuation of the underlying collateral. The Company estimates the fair value of the collateral using the best information available, which may include independent appraisals or other relevant market data. Loans That Share Similar Risk Characteristics (Pooled Loans) The general steps in determining expected credit losses for the pooled loan component of the allowance are as follows: • Segment loans into pools according to similar risk characteristics; • Develop historical loss rates for each loan pool segment; • Incorporate the impact of forecasts; • Incorporate the impact of other qualitative factors; and • Calculate and review pool specific allowance for credit loss estimate. 54 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Methodology The weighted-average remaining maturity method (“WARM”) methodology is utilized as the basis for the estimation of expected credit losses for consumer segment loans. The WARM method uses a historical average annual charge-off rate. This average annual charge-off rate contains loss content over a historical lookback period and is used as a foundation for estimating the credit loss reserve for the remaining outstanding balances of loans in a segment at the balance sheet date. The average annual charge-off rate is applied to the contractual term, further adjusted for estimated prepayments, to determine the unadjusted historical charge-off rate. The calculation of the unadjusted historical charge-off rate is then adjusted for current conditions and for reasonable and supportable forecast periods. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in our historic loss factors. A discounted cash flow (“DCF”) methodology is utilized to calculate expected cash flows for the life of each individual loan, with the exception of consumer segment loans. The discounted present value of expected cash flow is then compared to the loan’s amortized cost basis to determine the credit loss estimate. Individual loan results are aggregated at the pool level in determining total reserves for each loan pool. The primary inputs used to calculate expected cash flows include historical loss rates which reflect probability of default (“PD”) and loss given default (“LGD”), and prepayment rates. The historical look-back period is a key factor in the calculation of the PD rate and is based on management’s assessment of current and forecasted conditions and may vary by loan pool. LGD rates generally reflect the historical average net loss rate by loan pool. Expected cash flows are further adjusted to incorporate the impact of loan prepayments which will vary by loan segment and interest rate conditions. In general, prepayment rates are based on peer group benchmark reporting of observed prepayment rates occurring in the loan portfolios of the peer group, and consideration of forecasted interest rates. Forecast Factors Adjustments are made to incorporate the impact of forecasted conditions across all loan segments. Certain assumptions are also applied, including the length of the forecast and reversion periods. The Company utilizes a 12 -month reasonable and supportable forecast period, followed by a 12 -month reversion period where loss rates revert to the historical average on a straight-line basis. The length of the forecast and reversion periods are periodically evaluated and based on management’s assessment of current and forecasted conditions. For purposes of developing a reasonable and supportable assessment of future conditions, management utilizes established industry and economic data points and sources, including forecasts for the national unemployment rate and gross domestic product (GDP) growth from the Federal Open Market Committee (FOMC). PD rates for the forecast period will be adjusted accordingly based on management’s assessment of future conditions. PD rates for the remainder period will reflect the historical mean PD rate. Reversion period PD rates reflect the difference between forecast and remainder period PD rates closed using a straight-line adjustment over the reversion period. Qualitative Factors Loss rates are further adjusted to account for other risk factors that impact loan defaults and losses. These basis point adjustments are based on management’s assessment of trends and conditions that impact credit risk and resulting credit losses, more specifically internal and external factors that are independent of and not reflected in the quantitative loss rate calculations. Risk factors management considers in this assessment include trends in underwriting standards, nature/volume/terms of loan originations, past due loans, loan review systems, collateral valuations, concentrations, legal/regulatory/political conditions, and the unforeseen impact of natural disasters. 55 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Purchased Loans When a loan portfolio is purchased, an allowance is established for those loans considered purchased with more-than-insignificant credit deterioration (“PCD”), and those not considered purchased with more-than-insignificant credit deterioration (“non-PCD”). The allowance established utilizes the same risk factors discussed above for our non-acquired allowance. The allowance established for non-PCD loans is recognized through provision expense upon acquisition, whereas the allowance established for loans considered PCD at acquisition is offset by an increase in the basis of the acquired loans. Any subsequent increases and decreases in the allowance related to acquired loans are recognized through provision expense, with future charge-offs recorded to the allowance. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which it is exposed to credit risk through a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for credit loss expense and is recorded in interest payable and other liabilities. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life and applies the same estimated loss rate as determined for current outstanding loan balances by segment. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is charged to operating expense and is computed using the straight-line method over the estimated useful lives of the assets. Maintenance and repairs are charged to expense as incurred while improvements are capitalized. Premises and equipment is tested for impairment if events or changes in circumstances occur that indicate that the carrying amount of any premises and equipment may not be recoverable. Premises that are identified to be sold are transferred to other real estate owned at the lower of their carrying amounts or their fair values less estimated costs to sell. Any losses on premises identified to be sold are charged to operating expense. Leases Certain operating leases are included as right of use lease assets in interest receivable and other assets on the consolidated balance sheet and a related lease liability is included in interest payable and other liabilities on the consolidated balance sheet. Right of use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The lease liability is measured as the present value of the unpaid lease payments, and the right of use assets value is derived from the calculation of the lease liability. To calculate the discount rate for each lease, the Company uses the rate implicit in the lease if available, otherwise an appropriate Federal Home Loan Bank (“FHLB”) advance borrowing rate is used that correlates with the term of the lease. Non-Marketable Equity Securities Non-marketable equity securities consist primarily of Federal Home Loan Bank of Topeka stock and Federal Reserve Bank of Kansas City stock and are required investments for financial institutions that are members of the FHLB and Federal Reserve systems. The required investment in common stock is based on a predetermined formula, carried at cost and evaluated for impairment. Long-Lived Asset Impairment The Company evaluates the recoverability of the carrying value of long-lived assets, including premises and equipment, operating lease right-of-use assets, and core deposit intangibles, whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows is expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. No asset impairment was recognized during the years ended December 31, 2025, 2024, and 2023. 56 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Other Real Estate Owned OREO consists of properties acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure, and premises held for sale. These properties are carried at the lower of the book values of the related loans or fair values based upon appraisals, less estimated costs to sell. Losses arising at the time of reclassification of such properties from loans to OREO are charged directly to the allowance for credit losses. Any losses on premises identified to be sold are charged to operating expense at the time of transfer from premises to OREO. Losses from declines in value of the properties subsequent to classification as OREO are charged to operating expense. Revenues and expenses for OREO property are included in the consolidated statements of comprehensive income for the period in which they occur. Gross rental income for OREO is included in other non-interest income. The expenses of operating or holding OREO property are included in noninterest expense. Other real estate owned is included in interest receivable and other assets on the consolidated balance sheets. The balance of OREO was not material for any of the periods presented. Business Combinations The acquisition method of accounting is used for business combinations. Under the acquisition accounting method, the acquiring Company recognizes 100% of the assets acquired and liabilities assumed at the acquisition date fair value. The excess of fair value of the consideration transferred over the acquisition date fair value of net assets acquired is recorded as goodwill. Asset Acquisition The fair value of assets acquired is measured and recognized at the amount of monetary assets or liabilities exchanged, which generally includes the transaction costs of the assets acquired. No gain or loss is recognized unless the fair value of any noncash assets given as consideration differs from the assets carrying amounts on the acquiring entities books. Goodwill and Intangible Assets Intangible assets totaled $ 752 ,000 and goodwill, net of accumulated amortization totaled $ 11.2 million for the year ended December 31, 2025, compared to intangible assets of $ 878 ,000 and goodwill, net of accumulated amortization of $ 8.5 million for the year ended December 31, 2024. 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 as of December 31, or more frequently if other impairment indicators are present. For the annual impairment test in 2025, the Company performed a qualitative assessment and concluded that it was not more than likely than not that the fair value of the reporting unit was less than its carrying amount. 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. 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. Segments The Company’s chief operating decision-maker (“CODM”) is the Chief Executive Officer. Operating segments are defined as components of a business about which separate financial information is available and evaluated regularly by the CODM in deciding how to allocate resources and assess performance. While the CODM monitors the revenue streams of the various products and services offered by the Bank, the Company’s operations are managed and financial performance is evaluated on a Company-wide basis as a single reportable operating segment. Discrete financial information, with a full allocation of revenue, costs, and capital from key corporate functions, is not available at a level other than on a Company-wide basis. Although the CODM has some limited financial information about the Company’s various financial products and services, this information is not complete and is insufficient for making resource allocation decisions or performance assessments at a more granular level. Therefore, management considers all financial service operations to be aggregated within one reportable operating segment, and evaluates financial performance on a company-wide basis using net income as reported on the consolidated statement of income. The measure of segment assets is total assets, as reported on the consolidated statements of condition. The CODM uses net income to monitor budget versus actual results and in the determination of allocating resources across the Company. The Company’s single reportable segment, generates revenues primarily from interest income from financial instruments and non-interest income and service charges on deposit accounts. There are no intra-entity sales or transfers within the Company. Management continues to evaluate the Company’s business units for potential separate reporting in the future as facts and circumstances evolve. Oil and gas operations do not constitute a significant industry segment for the Company, therefore management determined that the supplemental oil and gas disclosures required by ASC 932 are not applicable. 57 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Stock-based Compensation The Company recognizes stock-based compensation as salaries and employee benefits expense in the consolidated statements of comprehensive income based on the fair value of the Company’s stock options and restricted stock units (“RSUs”) on the measurement date, which, for the Company, is the date of the grant. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model and was based on certain assumptions including risk-free rate of return, dividend yield, stock price volatility and the expected term. The fair value of each RSU granted is equal to the market price of the Company’s stock at the date of grant. The fair value of each option and RSU is expensed over its vesting period. Income Taxes The Company uses a comprehensive model for recognizing, measuring, presenting, and disclosing in the financial statements tax positions taken or expected to be taken on a tax return. A tax position is recognized as a benefit only if it is ‘‘more likely than not’’ that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2025, 2024 and 2023, the Company recognized no interest and penalties. The Company or one of its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. We are no longer subject to U.S. federal or state tax examinations for years before 2022. Comprehensive Income Comprehensive income includes all changes in shareholders’ equity during a period, except those resulting from transactions with shareholders. Besides net income, other components of the Company’s comprehensive income includes the after tax effect of changes in the net unrealized gain/loss on debt securities available-for-sale. The Company’s policy is to release material stranded tax effects included in accumulated other comprehensive income on a specific identification basis. Earnings per Share Basic earnings per common share is computed by dividing net income, less any preferred dividends requirement, by the weighted average of common shares outstanding. Diluted earnings per common share reflects the potential dilution that could occur if options, RSU’s, convertible securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. Revenue Recognition In addition to lending and related activities, the Company offers various services to customers that generate revenue. Contract performance typically occurs in one year or less. Incremental costs of obtaining a contract are expensed when incurred when the amortization period is one year or less. Service and transaction fees on depository accounts Customers often pay certain fees to the bank to access the cash on deposit including certain non-transactional fees such as account maintenance or dormancy fees, and certain transaction based fees such as ATM, wire transfer, or foreign exchange fees. Revenue is recognized when the transactions occur or as services are performed over primarily monthly or quarterly periods. Payment is typically received in the period the transactions occur, or in some cases, within 90 days of the service period. 58 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Interchange Fees Interchange fees, or “swipe” fees, are charges that merchants pay to the processors who, in turn, share that revenue with us and other card-issuing banks for processing electronic payment transactions. Interchange fees represent the portion of the debit card transaction amount that the card issuer retains to compensate it for processing transactions and providing rewards. Interchange fees are settled and recognized on a daily or monthly basis. Interchange fees are included with noninterest income and recorded net of related expenses as the Bank acts as an agent, introducing the customer transactions to the processor. Summary of Significant Accounting Policies--Specific to Production of Oil and Natural Gas Reserves Operations Use of Estimates Items subject to estimates and assumptions include the proved oil, and natural gas and natural gas liquid (“NGL”) reserves used in the valuation of oil and gas properties, asset retirement obligations, fair value of derivatives and revenue accruals. It is possible these estimates could be revised in the near term. The Company’s estimates of oil, natural gas and NGL reserves are, by necessity, projections based on geologic and engineering data, and there are uncertainties inherent in the interpretation of such data, as well as the projection of future rates of production. Reserve engineering is a subjective process of estimating underground accumulations of oil, natural gas, and NGL that are difficult to measure. The accuracy of any reserve estimate is a function of the quality of available data, engineering and geological interpretation and judgment. Estimates of economically recoverable oil, natural gas and NGL reserves and future net cash flows necessarily depend upon a number of variable factors and assumptions, such as historical production from the area compared with production from other producing areas, the assumed effect of regulations by governmental agencies, and assumptions governing future oil, natural gas, and NGL prices, future operating costs, severance taxes, and workover costs, all of which may in fact vary considerably from actual results. For these reasons, estimates of the economically recoverable quantities of expected oil, natural gas, and NGL attributable to any particular group of properties, classifications of such reserves based on risk of recovery, and estimates of the future net cash flows may vary substantially. Any significant variance in the assumptions could materially affect the estimated quantity of the reserves, which could affect the carrying value of the Company’s oil, natural gas, and NGL properties and/or the rate of depletion related to the oil, natural gas, and NGL properties. Accounts Receivable The Company’s oil and gas related accounts receivable primarily consists of oil, natural gas and NGL receivables. The oil and gas related accounts receivable balance is included in interest receivable and other assets on the consolidated balance sheets. Additionally, due to the creditworthiness of our purchasers, we do not have any allowance for doubtful accounts recorded and do not expect to write off any portion of our oil and gas related accounts receivable. Accounts Payable The Company’s oil and gas related accounts payable balance primarily consists of trade payables owed to vendors that provide services and equipment for the wells and assets. The oil and gas related accounts payable balance is included in interest payable and other liabilities on the consolidated balance sheets. 59 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Recent Accounting Pronouncements Standards Adopted During Current Period: In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), primarily focused on income tax disclosures regarding effective tax rates and cash income taxes paid. The Company adopted this ASU effective January 1, 2025, on a prospective basis. The adoption resulted in expanded income tax disclosures in the notes to the consolidated financial statements but did not have a material impact on the Company’s consolidated financial position or results of operations. See Note 9 for the corresponding income tax disclosures. Standards Not Yet Adopted: In December 2025, the FASB issued ASU 2025-12, Codification Improvements. This update includes a wide range of amendments to clarify, correct errors in, and make minor improvements to the Accounting Standards Codification. The amendments are effective for fiscal years beginning after December 15, 2025, and interim periods within those fiscal years. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This update is intended to improve the clarity and consistency of interim reporting requirements. The amendments are effective for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. This update aims to better align hedge accounting with an entity’s risk management activities. The amendments are effective for fiscal years beginning after December 15, 2026. The Company does not apply formal hedge accounting and therefore does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In October 2025, the FASB issued ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans. This ASU modifies the accounting for expected credit losses for purchased financial assets. The standard is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. As the Company has not acquired loans in the periods presented, the adoption of this ASU is not expected to have a material impact on its consolidated financial statements. In September 2025, the FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606). This update provides targeted refinements to the scope of derivative accounting. The standard is effective for annual periods beginning after December 15, 2026. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. 60 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This update provides a practical expedient allowing entities to assume that current economic conditions will remain unchanged for the life of short-term financial assets, such as trade receivables, that arise from contracts with customers. The standard is effective for fiscal years beginning after December 15, 2025, with early adoption permitted. The Company is currently evaluating the impact of this new guidance, but does not expect its adoption to have a material impact on its consolidated financial statements. In November 2024, the FASB issued ASU 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments. This ASU clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The amendments are effective for fiscal years beginning after December 15, 2025, including interim periods within those fiscal years. The Company does not currently have any convertible debt instruments; therefore, the Company does not expect the adoption of this ASU to have a material impact on its consolidated financial position, results of operations, or disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures. This ASU requires public business entities to disclose disaggregated information about certain expense captions, including compensation costs, depreciation and amortization, advertising costs, shipping and handling costs, and research and development costs, in the notes to their financial statements. The amendments are effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statement disclosures. 61 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Subsequent Events The Company evaluated subsequent events through the date the consolidated financial statements were issued. There were no subsequent events requiring recognition or disclosure. Revision of Prior-Period Comparative Financial Statements Certain disclosures in the 2024 comparative consolidated financial statements have been revised to correct for misstatements that were not material to the previously issued 2024 financial statements. Management has concluded that the 2024 financial statements, as originally issued, can continue to be relied upon. The revisions relate to the presentation of certain disclosures and do not impact previously reported total assets, total liabilities, total shareholders' equity, or net income for the year ended December 31, 2024. The specific revisions are as follows: • Related-Party Loans: A disclosure for loans to related parties, which was omitted from the 2024 footnotes, has been included in the comparative Note 14, "Related-Party Transactions." The corrected balance of loans to related parties as of December 31, 2024, is $ 10,846 ,000. • Loan Portfolio Vintage Disclosure: The loan portfolio vintage disclosure in Note 5 has been revised to properly disaggregate approximately $ 240 million of non-revolving loans by their year of origination. These loans were previously aggregated in the "Revolving Loans" column in the 2024 financial statements. 62 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Note 2: Recent Events, Including Mergers and Acquisitions Acquisition On October 31, 2023, the Company entered into an asset purchase and sale agreement, effective September 1, 2023 , to acquire proved oil and natural gas properties from HB2 Origination, LLC, which consisted of nine wells in formations in four counties in Texas for $ 15.4 million in cash. On November 17, 2023, the transaction closed for a total purchase price of $ 15.1 million, after closing adjustments. As a part of the purchase, the Company assumed asset retirement obligations of $ 0.4 million that were included in interest payable and other liabilities on the consolidated balance sheets as of December 31, 2023. The acquisition was considered an asset acquisition and did not meet the definition of a business under ASC 805, Business Combinations . Additionally, transaction costs of $ 1.4 million were capitalized into oil and gas properties related to this acquisition. The purchase price and related asset retirement obligations were allocated based on the relative fair values of the assets acquired and $ 1.7 million was allocated to proved leasehold costs while the remaining $ 15.4 million was allocated to completed wells and related facilities and equipment, included in interest receivable and other assets on the consolidated balance sheets. The Company had oil and gas assets and related receivables included in interest receivable and other assets on the consolidated balance sheets of $ 8.9 million and $ 12.1 million, and assets retirement obligations and oil and gas related liabilities included in interest payable and other liabilities on the consolidated balance sheets of $ 0.8 million and $ 0.9 million as of December 31, 2025 and December 31, 2024, respectively. The Company had oil and gas related revenues included in “Other” noninterest income on the consolidated statements of comprehensive income of $ 4.9 million and $ 8.5 million, and oil and gas related expenses included in “Other” noninterest expense on the consolidated statements of comprehensive income of $ 4.3 million and $ 4.8 million for the twelve months ended December 31, 2025 and December 31, 2024, respectively. 63 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Note 3: Earnings per Share Basic earnings per common share represents the amount of earnings for the period available to each share of common stock outstanding during the reporting period. Basic earnings per share (“EPS”) is computed based upon net income divided by the weighted average number of common shares outstanding during the period. Diluted EPS represents the amount of earnings for the period available to each share of common stock outstanding including common stock that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during each reporting period. Diluted EPS is computed based upon net income divided by the weighted average number of common shares outstanding during each period, adjusted for the effect of dilutive potential common shares, such as restricted stock awards and nonqualified stock options, calculated using the treasury stock method. The following table shows the computation of basic and diluted earnings per share: As of and for the Years ended December 31, 2025 2024 2023 (Dollars in thousands, except share and per share amounts) Numerator Net income $ 43,069 $ 45,698 $ 28,275 Denominator Weighted-average shares outstanding for basic earnings per share 9,444,105 9,290,051 9,161,565 Dilutive effect of stock compensation (1) 130,085 157,700 102,742 Denominator for diluted earnings per share $ 9,574,190 $ 9,447,751 $ 9,264,307 Earnings per common share Basic $ 4.56 $ 4.92 $ 3.09 Diluted $ 4.50 $ 4.84 $ 3.05 (1) The following have not been included in diluted earnings per share because to do so would have been antidilutive for the periods presented: Nonqualified stock options outstanding of 0 , 0 , and 5,000 as of December 31, 2025, 2024, and 2023, respectively; Restricted stock units outstanding of 30,600 , 0, and 156,186 as of December 31, 2025, 2024, and 2023, respectively. 64 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Note 4: Debt Securities The following table summarizes the amortized cost and fair value of debt securities available-for-sale at December 31, 2025 and December 31, 2024, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale as of December 31, 2025 U.S. federal agencies $ 21 $ - $ - $ 21 Mortgage-backed securities (1)(2) 27,311 - ( 1,879 ) 25,432 State and political subdivisions 18,473 - ( 699 ) 17,774 U.S. treasuries 6,011 - ( 403 ) 5,608 Corporate debt securities 5,500 - ( 316 ) 5,184 Total available-for-sale 57,316 - ( 3,297 ) 54,019 Total debt securities $ 57,316 $ - $ ( 3,297 ) $ 54,019 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale as of December 31, 2024 U.S. federal agencies $ 64 $ - $ - $ 64 Mortgage-backed securities (1)(2) 33,704 - ( 3,508 ) 30,196 State and political subdivisions 21,156 - ( 1,430 ) 19,726 U.S. treasuries 6,021 - ( 695 ) 5,326 Corporate debt securities 5,500 - ( 871 ) 4,629 Total available-for-sale 66,445 - ( 6,504 ) 59,941 Total debt securities $ 66,445 $ - $ ( 6,504 ) $ 59,941 (1) All mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities. (2) Included in amortized cost of mortgage-backed securities is $19.09 million and $21.97 million of residential mortgage-backed securities and $8.22 million and $11.73 million of commercial mortgage-backed securities as of December 31, 2025 and December 31, 2024, respectively. 65 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements The amortized cost and estimated fair value of investment securities at December 31, 2025 and December 31, 2024, by contractual maturity, are shown below. The expected life of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to call or prepay the underlying mortgage loans with or without call or prepayment penalties. (in thousands) Amortized Cost Fair Value Available-for-sale as of December 31, 2025 Due in one year or less $ 4,941 $ 4,889 Due after one year through five years 13,920 13,274 Due after five years through ten years 11,144 10,424 Due after ten years - - Mortgage-backed securities 27,311 25,432 Total available-for-sale $ 57,316 $ 54,019 (in thousands) Amortized Cost Fair Value Available-for-sale as of December 31, 2024 Due in one year or less $ 2,061 $ 2,028 Due after one year through five years 16,345 15,315 Due after five years through ten years 14,335 12,402 Due after ten years - - Mortgage-backed securities 33,704 30,196 Total available-for-sale $ 66,445 $ 59,941 There were no holdings of securities of issuers in an amount greater than 10% of stockholders’ equity at December 31, 2025. The following table presents a summary of realized gains and losses from the sale, prepayment and call of debt securities for the year ended December 31, 2025 and December 31, 2024. Year Ended December 31, 2025 2024 (in thousands) Proceeds from sales, maturities, prepayments and calls $ 8,923 $ 195,692 Gross realized gains on sales, prepayments and calls - - Gross realized losses on sales, prepayments and calls ( 10 ) ( 6 ) Total realized (losses), net $ ( 10 ) $ ( 6 ) The following table details book value of pledged securities as of December 31, 2025 and December 31, 2024: Year Ended December 31, (in thousands) 2025 2024 Book value of pledged securities $ 17,288 $ 19,071 66 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements The following table details gross unrealized losses and fair values of investment securities aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2025 and December 31, 2024. As of December 31, 2025, the Company had the ability and intent to hold the debt securities classified as available-for-sale for a period of time sufficient for a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying debt securities were purchased and acquired. The fair value of those debt securities having unrealized losses is expected to recover as the securities approach their maturity date or repricing date, or if market yields for such investments decline. Management has no intent or requirement to sell before the recovery of the unrealized loss; therefore, no impairment loss was realized in the Company’s consolidated statement of comprehensive income. As of December 31, 2025 and December 31, 2024, there was no allowance for credit losses recorded related to investment securities. Less than Twelve Months Twelve Months or Longer Total Number of Gross Unrealized Gross Unrealized Gross Unrealized Investments Fair Value Losses Fair Value Losses Fair Value Losses (in thousands) Available-for-sale as of December 31, 2025 U.S. federal agencies 1 $ - $ - $ 2 $ - $ 2 $ - Mortgage-backed securities 23 - - 25,432 ( 1,879 ) 25,432 ( 1,879 ) State and political subdivisions (1) 54 - - 17,201 ( 699 ) 17,201 ( 699 ) U.S. treasuries 6 - - 5,608 ( 403 ) 5,608 ( 403 ) Corporate debt securities (2) 4 - - 5,184 ( 316 ) 5,184 ( 316 ) Total available-for-sale 88 $ - $ - $ 53,427 $ ( 3,297 ) $ 53,427 $ ( 3,297 ) Less than Twelve Months Twelve Months or Longer Total Number of Gross Unrealized Gross Unrealized Gross Unrealized Investments Fair Value Losses Fair Value Losses Fair Value Losses (in thousands) Available-for-sale as of December 31, 2024 U.S. federal agencies 2 $ - $ - $ 64 $ - $ 64 $ - Mortgage-backed securities 30 - - 30,196 $ ( 3,508 ) 30,196 ( 3,508 ) State and political subdivisions (1) 62 499 - 19,227 $ ( 1,430 ) 19,726 ( 1,430 ) U.S. treasuries 6 - - 5,326 $ ( 695 ) 5,326 ( 695 ) Corporate debt securities (2) 4 - - 4,629 $ ( 871 ) 4,629 ( 871 ) Total available-for-sale 104 $ 499 $ - $ 59,442 $ ( 6,504 ) $ 59,941 $ ( 6,504 ) (1) The state and political subdivision securities, $ 16.33 million and $ 17.83 million are rated BBB+ or better and $ 1.45 million and $ 1.90 million are not rated as of December 31, 2025 and December 31, 2024, respectively. (2) The corporate debt securities are not rated. 67 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Note 5: Loans and Allowance for Credit Losses A summary of loans at December 31, 2025 and December 31, 2024, are as follows (dollars in thousands): December 31, 2025 2024 Construction & development $ 224,566 $ 167,685 1 - 4 family real estate 126,122 121,047 Commercial real estate - other 587,597 511,304 Total commercial real estate 938,285 800,036 Commercial & industrial 567,280 507,023 Agricultural 90,908 77,922 Consumer 12,894 14,312 Gross loans 1,609,367 1,399,293 Less allowance for credit losses ( 19,407 ) ( 17,918 ) Less deferred loan fees ( 2,936 ) ( 1,910 ) Net loans $ 1,587,024 $ 1,379,465 68 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements On January 1, 2023, the Company adopted ASU 2016-13, which replaces the incurred loss methodology for determining its provision for credit losses and allowance for credit losses with an expected loss methodology that is referred to as the CECL model. See Note (1) for additional information regarding the factors that influenced the Company’s current estimate of expected credit losses. Upon adoption, the allowance for credit losses was increased by $ 250 ,000 and $ 500 ,000 for loans and unfunded commitments, respectively, with no impact to the consolidated statement of income. Subsequent to the adoption of ASU 2016-13, the Company recorded a $ 21.2 million and ($ 36 ,000) provision for credit losses related to loans and unfunded commitments, respectively, for the twelve months of 2023 utilizing the newly adopted CECL methodology. The following table presents, by portfolio segment, the activity in the allowance for credit losses for the years ended December 31, 2025, 2024, and 2023 (dollars in thousands): Commercial Construction & 1 - 4 Family Real Estate - Commercial Development Real Estate Other & Industrial Agricultural Consumer Total December 31, 2025 Loans Balance, beginning of period $ 1,223 $ 1,313 $ 6,992 $ 6,797 $ 1,106 $ 487 $ 17,918 Charge-offs - - ( 197 ) - - ( 3 ) ( 200 ) Recoveries - - 17 965 4 3 989 Net (charge-offs) recoveries - - ( 180 ) 965 4 - 789 Provision (credit) for credit losses ( 1 ) ( 349 ) 43 1,607 ( 498 ) ( 102 ) 700 Balance, end of period $ 1,222 $ 964 $ 6,855 $ 9,369 $ 612 $ 385 $ 19,407 Unfunded Commitments Balance, beginning of period $ 202 $ 6 $ 9 $ 230 $ 14 $ 3 $ 464 Provision (credit) for credit losses ( 92 ) ( 2 ) 26 63 5 - - Balance, end of period $ 110 $ 4 $ 35 $ 293 $ 19 $ 3 $ 464 Total allowance for credit losses and reserve for unfunded commitments $ 1,332 $ 968 $ 6,890 $ 9,662 $ 631 $ 388 $ 19,871 Total provision (credit) for credit losses $ ( 93 ) $ ( 351 ) $ 69 $ 1,670 $ ( 493 ) $ ( 102 ) $ 700 Commercial Construction & 1 - 4 Family Real Estate - Commercial Development Real Estate Other & Industrial Agricultural Consumer Total December 31, 2024 Loans Balance, beginning of period $ 1,417 $ 1,271 $ 6,889 $ 9,237 $ 628 $ 249 $ 19,691 Charge-offs - - ( 275 ) ( 2,000 ) - - ( 2,275 ) Recoveries - - - 495 7 - 502 Net (charge-offs) recoveries - - ( 275 ) ( 1,505 ) 7 - ( 1,773 ) Provision (credit) for credit losses ( 194 ) 42 378 ( 935 ) 471 238 - Balance, end of period $ 1,223 $ 1,313 $ 6,992 $ 6,797 $ 1,106 $ 487 $ 17,918 Unfunded Commitments Balance, beginning of period $ 158 $ 4 $ 8 $ 280 $ 11 $ 3 $ 464 Provision (credit) for credit losses 44 2 1 ( 50 ) 3 - - Balance, end of period $ 202 $ 6 $ 9 $ 230 $ 14 $ 3 $ 464 Total allowance for credit losses and reserve for unfunded commitments $ 1,425 $ 1,319 $ 7,001 $ 7,027 $ 1,120 $ 490 $ 18,382 Total provision (credit) for credit losses $ ( 150 ) $ 44 $ 379 $ ( 985 ) $ 474 $ 238 $ - Commercial Construction & 1 - 4 Family Real Estate - Commercial Development Real Estate Other & Industrial Agricultural Consumer Total December 31, 2023 Loans Balance, beginning of period $ 1,889 $ 890 $ 5,080 $ 5,937 $ 765 $ 173 $ 14,734 Impact of CECL adoption 44 ( 138 ) ( 168 ) 716 ( 149 ) ( 55 ) 250 Charge-offs - - - ( 16,500 ) ( 7 ) ( 17 ) ( 16,524 ) Recoveries - - - 40 2 8 50 Net (charge-offs) recoveries - - - ( 16,460 ) ( 5 ) ( 9 ) ( 16,474 ) Provision (credit) for credit losses ( 516 ) 519 1,977 19,044 17 140 21,181 Balance, end of period $ 1,417 $ 1,271 $ 6,889 $ 9,237 $ 628 $ 249 $ 19,691 Unfunded Commitments Balance, beginning of period $ - $ - $ - $ - $ - $ - $ - Impact of CECL adoption 171 4 24 274 25 2 500 Provision (credit) for credit losses ( 13 ) - ( 16 ) 6 ( 14 ) 1 ( 36 ) Balance, end of period $ 158 $ 4 $ 8 $ 280 $ 11 $ 3 $ 464 Total allowance for credit losses and reserve for unfunded commitments $ 1,575 $ 1,275 $ 6,897 $ 9,517 $ 639 $ 252 $ 20,155 Total provision (credit) for credit losses $ ( 529 ) $ 519 $ 1,961 $ 19,050 $ 3 $ 141 $ 21,145 69 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Internal Risk Categories Each loan segment is made up of loan categories possessing similar risk characteristics. Risk characteristics applicable to each segment of the loan portfolio are described as follows: Real Estate – The real estate portfolio consists of residential and commercial properties. Residential loans are generally secured by owner occupied 1–4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans can be impacted by economic conditions within the Company’s market areas that might impact either property values or a borrower’s personal income. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Commercial real estate loans in this category typically involve larger principal amounts and are repaid primarily from the cash flow of a borrower’s principal business operation, the sale of the real estate or income independent of the loan purpose. Credit risk in these loans is driven by the creditworthiness of a borrower, property values, the local economy and other economic conditions impacting a borrower’s business or personal income. Construction and development loans introduce additional risks, as repayment is generally dependent on the successful completion of the project and the subsequent sale or permanent financing of the property. Credit risk in these loans is primarily driven by potential construction delays, cost overruns, and shifts in market conditions or interest rates that could impact the ultimate value of the project or the borrower’s ability to secure permanent financing. Commercial & Industrial – The commercial portfolio includes loans to commercial customers for use in financing working capital needs, equipment purchases and expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations. Agricultural – Loans secured by agricultural assets are generally made for the purpose of acquiring land devoted to crop production, cattle or poultry or the operation of a similar type of business on the secured property. Sources of repayment for these loans generally include income generated from operations of a business on the property, rental income or sales of the property. Credit risk in these loans may be impacted by crop and commodity prices, the creditworthiness of a borrower, and changes in economic conditions which might affect underlying property values and the local economies in the Company’s market areas. Consumer – The consumer loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes. Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors, such as unemployment and general economic conditions in the Company’s market area and the creditworthiness of a borrower. 70 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Loan grades are numbered 1 through 4. Grade 1 is considered satisfactory. The grades of 2 and 3, or Watch and Special Mention, respectively, represent loans of lower quality and are considered criticized. Grade of 4, or Substandard, refers to loans that are classified. • Grade 1 (Pass) – These loans generally conform to Bank policies, and are characterized by policy conforming advance rates on collateral, and have well-defined repayment sources. In addition, these credits are extended to Borrowers and/or Guarantors with a strong balance sheet and either substantial liquidity or a reliable income history. • Grade 2 (Watch) – These loans are still considered “Pass” credits; however, various factors such as industry stress, material changes in cash flow or financial conditions, or deficiencies in loan documentation, or other risk issues determined by the Lending Officer, Commercial Loan Committee (CLC), or Credit Quality Committee (CQC) warrant a heightened sense and frequency of monitoring. • Grade 3 (Special Mention) – These loans must have observable weaknesses or evidence of imprudent handling or structural issues. The weaknesses require close attention and the remediation of those weaknesses is necessary. No risk of probable loss exists. Credits in this category are expected to quickly migrate to a “2” or a “4” as this is viewed as a transitory loan grade. • Grade 4 (Substandard) – These loans are not adequately protected by the sound worth and debt service capacity of the Borrower, but may be well secured. They have defined weaknesses relative to cash flow, collateral, financial condition, or other factors that might jeopardize repayment of all of the principal and interest on a timely basis. There is the possibility that a future loss will occur if weaknesses are not remediated. The Company evaluates the definitions of loan grades and the allowance for loan losses methodology on an ongoing basis. No changes were made to either during the period ended December 31, 2025. 71 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements The following table presents the amortized cost of the Company’s loan portfolio by year of origination based on internal rating category as of December 31, 2025 (dollars in thousands): As of December 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total Construction & development Grade 1 (Pass) $ 130,881 $ 72,299 $ 6,397 $ 823 $ 400 $ 181 $ 11,707 $ 222,688 2 (Watch) - - - - - - - - 3 (Special Mention) - 1,323 - - - - - 1,323 4 (Substandard) 555 - - - - - - 555 Total construction & development 131,436 73,622 6,397 823 400 181 11,707 224,566 1 - 4 family real estate Grade 1 (Pass) 54,582 31,454 20,341 6,561 5,202 4,808 3,174 126,122 2 (Watch) - - - - - - - - 3 (Special Mention) - - - - - - - - 4 (Substandard) - - - - - - - - Total 1 - 4 family real estate 54,582 31,454 20,341 6,561 5,202 4,808 3,174 126,122 Commercial real estate - other Grade 1 (Pass) 253,967 94,375 97,115 91,061 16,978 7,215 423 561,134 2 (Watch) - - 18,077 - - - - 18,077 3 (Special Mention) - 6,893 - - - - - 6,893 4 (Substandard) 1,423 - - - - 70 - 1,493 Total commercial real estate - other 255,390 101,268 115,192 91,061 16,978 7,285 423 587,597 Commercial and industrial Grade 1 (Pass) 272,946 62,009 19,177 27,798 3,208 4,605 115,509 505,252 2 (Watch) - - - - - - 37,285 37,285 3 (Special Mention) 18,128 655 - - - - 125 18,908 4 (Substandard) 2,384 3,429 - - - 22 - 5,835 Total commercial and industrial 293,458 66,093 19,177 27,798 3,208 4,627 152,919 567,280 Agricultural Grade 1 (Pass) 33,761 17,078 4,757 4,146 5,493 1,751 20,143 87,129 2 (Watch) - - - - - - - - 3 (Special Mention) 2,280 32 - - 282 - 1,185 3,779 4 (Substandard) - - - - - - - - Total agricultural 36,041 17,110 4,757 4,146 5,775 1,751 21,328 90,908 Consumer Grade 1 (Pass) 4,548 2,188 857 371 995 1,957 1,978 12,894 2 (Watch) - - - - - - - - 3 (Special Mention) - - - - - - - - 4 (Substandard) - - - - - - - - Total consumer 4,548 2,188 857 371 995 1,957 1,978 12,894 Total loans $ 775,455 $ 291,735 $ 166,721 $ 130,760 $ 32,558 $ 20,609 $ 191,529 $ 1,609,367 72 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements The following table presents the amortized cost of the Company’s loan portfolio by year of origination based on internal rating category as of December 31, 2024 (dollars in thousands): As of December 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total Construction & development Grade 1 (Pass) $ 104,927 $ 33,496 $ 4,240 $ 566 $ 104 $ 111 $ 22,419 $ 165,863 2 (Watch) - - - - - - - - 3 (Special Mention) 1,259 - - - - - - 1,259 4 (Substandard) 563 - - - - - - 563 Total construction & development 106,749 33,496 4,240 566 104 111 22,419 167,685 1 - 4 family real estate Grade 1 (Pass) 58,619 33,311 14,700 6,381 3,755 2,041 2,240 121,047 2 (Watch) - - - - - - - - 3 (Special Mention) - - - - - - - - 4 (Substandard) - - - - - - - - Total 1 - 4 family real estate 58,619 33,311 14,700 6,381 3,755 2,041 2,240 121,047 Commercial real estate - other Grade 1 (Pass) 143,011 152,264 155,959 21,969 14,976 5,657 4,999 498,835 2 (Watch) - - - - - - - - 3 (Special Mention) 7,493 - - - - - - 7,493 4 (Substandard) 4,426 447 - - - 103 - 4,976 Total commercial real estate - other 154,930 152,711 155,959 21,969 14,976 5,760 4,999 511,304 Commercial and industrial Grade 1 (Pass) 203,765 79,704 45,082 4,064 2,560 3,736 154,601 493,512 2 (Watch) - - - - - - - - 3 (Special Mention) 558 - - - - - 3,259 3,817 4 (Substandard) 9,417 - - - - - 277 9,694 Total commercial and industrial 213,740 79,704 45,082 4,064 2,560 3,736 158,137 507,023 Agricultural Grade 1 (Pass) 32,425 7,453 4,882 6,774 1,823 1,140 20,399 74,896 2 (Watch) - - - - - - - - 3 (Special Mention) 201 - - - 1,831 - 994 3,026 4 (Substandard) - - - - - - - - Total agricultural 32,626 7,453 4,882 6,774 3,654 1,140 21,393 77,922 Consumer Grade 1 (Pass) 5,023 1,866 771 1,358 1,689 2,059 1,546 14,312 2 (Watch) - - - - - - - - 3 (Special Mention) - - - - - - - - 4 (Substandard) - - - - - - - - Total consumer 5,023 1,866 771 1,358 1,689 2,059 1,546 14,312 Total loans $ 571,687 $ 308,541 $ 225,634 $ 41,112 $ 26,738 $ 14,847 $ 210,734 $ 1,399,293 73 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements The following tables presents the gross charge-offs of the Company’s loan portfolio by year of origination based on internal rating category for the twelve months ended December 31, 2025 and December 31, 2024, respectively (dollars in thousands): Year Ended December 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total Construction & development $ - $ - $ - $ - $ - $ - $ - $ - 1 - 4 family real estate - - - - - - - - Commercial real estate - other - 197 - - - - - 197 Commercial and industrial - - - - - - - - Agricultural - - - - - - - - Consumer - 3 - - - - - 3 Total current-period gross charge-offs $ - $ 200 $ - $ - $ - $ - $ - $ 200 Year Ended December 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total Construction & development $ - $ - $ - $ - $ - $ - $ - $ - 1 - 4 family real estate - - - - - - - - Commercial real estate - other - 275 - - - - - 275 Commercial and industrial - 2,000 - - - - - 2,000 Agricultural - - - - - - - - Consumer - - - - - - - - Total current-period gross charge-offs $ - $ 2,275 $ - $ - $ - $ - $ - $ 2,275 74 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Aged Analysis of Past Due Loans Receivable The following table presents the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2025 and December 31, 2024 (dollars in thousands): Past Due Total Loans 30–59 60–89 Greater than Total > 90 Days & Days Days 90 Days Total Current Loans Accruing December 31, 2025 Construction & development $ 79 $ - $ - $ 79 $ 224,487 $ 224,566 $ - 1 - 4 family real estate 47 - - 47 126,075 126,122 - Commercial real estate - other - 1,423 - 1,423 586,174 587,597 - Commercial & industrial 1,702 80 3,429 5,211 562,069 567,280 - Agricultural - - - - 90,908 90,908 - Consumer 30 - - 30 12,864 12,894 - Total $ 1,858 $ 1,503 $ 3,429 $ 6,790 $ 1,602,577 $ 1,609,367 $ - December 31, 2024 Construction & development $ - $ - $ - $ - $ 167,685 $ 167,685 $ - 1 - 4 family real estate - - - - 121,047 121,047 - Commercial real estate - other 103 - 3,426 3,529 507,775 511,304 - Commercial & industrial 403 5 - 408 506,615 507,023 - Agricultural - - - - 77,922 77,922 - Consumer 97 - - 97 14,215 14,312 - Total $ 603 $ 5 $ 3,426 $ 4,034 $ 1,395,259 $ 1,399,293 $ - 75 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Nonaccrual Loans The following table presents information regarding nonaccrual loans as of December 31, 2025 and December 31, 2024 (dollars in thousands): With an Allowance No Allowance Total Non-Accrual Loans Related Allowance December 31, 2025 Construction & development $ - $ 555 $ 555 $ - 1 - 4 Family real estate - - - - Commercial real estate - other - 70 70 - Commercial & industrial 623 5,212 5,835 255 Agricultural - - - - Consumer - - - - Total $ 623 $ 5,837 $ 6,460 $ 255 With an Allowance No Allowance Total Non-Accrual Loans Related Allowance December 31, 2024 Construction & development $ - $ - $ - $ - 1 - 4 Family real estate - - - - Commercial real estate - other 2,980 550 3,530 217 Commercial & industrial 83 3,557 3,640 83 Agricultural - - - - Consumer - - - - Total $ 3,063 $ 4,107 $ 7,170 $ 300 Interest income recognized on the nonaccrual loans for the years ended December 31, 2025, 2024, and 2023 was considered immaterial. 76 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Collateral Dependent Loans A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. During the twelve months ended December 31, 2025 and December 31, 2024, no material amount of interest income was recognized on collateral-dependent loans subsequent to their classification as collateral-dependent. At a minimum, the estimated value of the collateral for loan equals the current book value. The following table summarizes collateral-dependent gross loans held for investment by collateral type and the related specific allocation as follows (dollars in thousands): Collateral Type Real Estate Business Assets Total Specific Allocation December 31, 2025 Construction & development $ 555 $ - $ 555 $ - 1 - 4 Family real estate - - - - Commercial real estate - other 1,492 - 1,492 - Commercial & industrial - 5,770 5,770 200 Agricultural - - - - Consumer - - - - Total $ 2,047 $ 5,770 $ 7,817 $ 200 Collateral Type Real Estate Business Assets Total Specific Allocation December 31, 2024 Construction & development $ - $ 563 $ 563 $ - 1 - 4 Family real estate - - - - Commercial real estate - other 4,426 550 4,976 217 Commercial & industrial - 9,609 9,609 - Agricultural - - - - Consumer - - - - Total $ 4,426 $ 10,722 $ 15,148 $ 217 77 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Loan Modifications to Borrowers Experiencing Financial Difficulty As part of the Company’s ongoing risk management practices, the Company attempts to work with borrowers experiencing financial difficulty and when necessary to extend or modify loan terms to better align with their current ability to repay. Modifications could include extension of the maturity date, reductions of the interest rate, reduction or forgiveness of accrued interest, or principal forgiveness. Combinations of these modifications may also be made for individual loans. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Principal reductions may be made in limited circumstances, typically for specific commercial loan workouts, and in the event of borrower bankruptcy. Each occurrence is unique to the borrower and is evaluated separately. A change to the allowance for credit losses is generally not recorded upon modification because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance methodology. The assessment of whether a borrower is experiencing financial difficulty can be subjective in nature and management’s judgment may be required in making this determination. The Company may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may default in the foreseeable future absent a modification. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty. During the year ended December 31, 2025, the Company modified eight loans for borrowers experiencing financial difficulty. Six of these modifications were related to a single borrower relationship and consisted of one construction and development loan and five commercial and industrial loans, all of which received term extensions. The remaining two modifications involved one commercial real estate loan and one commercial and industrial loan, both of which received a term extension and a payment delay. As of December 31, 2025, the period-end amortized cost basis of these modified loans was as follows: • The modified construction and development loan had an amortized cost basis of $ 1.3 million, received a term extension of six months , and represented 0.6 % of the total construction and development loan portfolio. • The modified commercial real estate loan had an amortized cost basis of $ 2.2 million, received a term extension of seven months and a payment delay of seven months , and represented 0.4 % of the total commercial real estate loan portfolio. • The modified commercial and industrial loans consisted of five loans that had a combined amortized cost basis of $ 0.8 million that received a weighted-average term extension of 36 months, and one loan that had an amortized cost basis of $ 2.6 million that received a term extension of 24 months and a payment delay of 24 months. Combined, these modifications represented 0.6 % of the total commercial and industrial loan portfolio. During the year ended December 31, 2024, the Company modified a single commercial real estate loan to a borrower who was experiencing financial difficulty, which included a term extension and interest rate reduction in exchange for credit enhancements. The loan had a period-end amortized cost basis of $ 2.7 million and represented 0.5 % of the commercial real estate class of loans at December 31, 2024. The Company closely monitors the performance of loans modified for borrowers experiencing financial difficulty. There were no loans modified for borrowers experiencing financial difficulty that subsequently defaulted during the 12-month period ended December 31, 2025. 78 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Note 6: Premises and Equipment Major classifications of premises and equipment, stated at cost and net of accumulated depreciation are as follows (dollars in thousands): December 31, 2025 2024 Land, buildings and improvements $ 25,600 $ 21,458 Furniture and equipment 3,526 3,123 Automobiles 1,091 897 30,217 25,478 Less accumulated depreciation ( 8,333 ) ( 7,341 ) Net premises and equipment $ 21,884 $ 18,137 The estimated useful lives range from five to 30 years for buildings and improvements, five to 15 years for furniture and equipment, and five years for automobiles. Note 7: Goodwill and Core Deposit Intangibles The following is a summary of goodwill and intangible assets (dollars in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount As of December 31, 2025 Goodwill $ 11,438 $ ( 230 ) $ 11,208 Core deposit intangibles 3,315 ( 2,563 ) 752 Total $ 14,753 $ ( 2,793 ) $ 11,960 Gross Carrying Amount Accumulated Amortization Net Carrying Amount As of December 31, 2024 Goodwill $ 8,688 $ ( 230 ) $ 8,458 Core deposit intangibles 3,315 ( 2,437 ) 878 Total $ 12,003 $ ( 2,667 ) $ 9,336 Amortization expense for intangible assets totaled $ 125 ,000, $ 153 ,000 and $ 305 ,000 for the years ended December 31, 2025, 2024 and 2023, respectively. Estimated amortization expense for each of the remaining life is as follows (dollars in thousands): 2026 $ 125 2027 125 2028 125 2029 125 2030 125 Thereafter 127 Total $ 752 79 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Note 8: Deposits The aggregate amount of interest-bearing time deposits in denominations that meet or exceed the insured limit were $ 96.2 million and $ 92.3 million at December 31, 2025 and 2024, respectively. At December 31, 2025, the scheduled maturities of interest-bearing time deposits were as follows (dollars in thousands): 2026 $ 219,213 2027 22,063 2028 1,830 2029 319 Thereafter 63 Total $ 243,488 To manage liquidity and provide insurance for customer funds, the Company participates in reciprocal deposit programs, such as CDARS and ICS. At December 31, 2025 reciprocal deposits totaled $ 576.5 million, and brokered deposits totaled $ 205.6 million. The Company holds certain deposits from related parties. For further information regarding these deposits, see Note 13. Note 9: Income Taxes For the years ended December 31, 2025, 2024, and 2023, all income before income taxes was generated from domestic operations. The (benefit)/provision for income taxes for the years ended December 31, 2025, 2024 and 2023 consists of the following (dollars in thousands): Year Ended December 31, 2025 2024 2023 Federal: Current $ 12,184 $ 12,411 $ 8,490 Deferred ( 477 ) ( 49 ) ( 921 ) Total federal tax provision $ 11,707 $ 12,362 $ 7,569 State: Current $ 1,990 $ 2,275 $ 1,540 Deferred ( 1 ) 19 ( 161 ) Total state tax provision $ 1,989 $ 2,294 $ 1,379 Total income tax provision $ 13,696 $ 14,656 $ 8,948 The provision for income taxes for the year ended December 31, 2025 differs from the federal rate of 21 % due to the following (dollars in thousands): Year Ended December 31, 2025 Amount Percent Statutory U.S. federal income tax $ 11,921 21.00 % State taxes (1) 1,572 2.77 % Nontaxable and nondeductible items, net: Other 203 0.36 % Provision for income taxes $ 13,696 24.13 % (1) State taxes in Oklahoma made up the majority (greater than 50 percent) of the tax effect in this category. 80 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements The provision for income taxes for the years ended December 31, 2024 and 2023 differs from the federal rate of 21 % due to the following (dollars in thousands): Year Ended December 31, 2024 2023 Statutory U.S. federal income tax $ 12,675 $ 7,789 State taxes (1) 1,694 1,069 Other 287 90 Provision for income taxes $ 14,656 $ 8,948 The following table presents income taxes paid (net of refunds received) for the year ended December 31, 2025 (dollars in thousands): Year Ended December 31, 2025 US federal $ 11,800 US state and local Oklahoma 1,780 Other 134 Total $ 13,714 The components of the net deferred tax assets are as follows (dollars in thousands): Year Ended December 31, 2025 2024 Deferred tax assets: Allowance for credit losses $ 4,534 $ 4,364 Non-accrual loans 834 716 Deferred compensation 651 496 Deferred revenue 306 206 Discounts and premiums on assets acquired - 15 Net unrealized loss on securities available for sale 554 1,281 Lease liabilities 501 443 Other 788 313 Total deferred tax assets $ 8,168 $ 7,834 Deferred tax liabilities: Property and equipment $ ( 1,014 ) $ ( 899 ) Intangible assets ( 993 ) ( 341 ) Prepaid expenses ( 103 ) ( 122 ) Right of use asset ( 482 ) ( 413 ) Other ( 129 ) ( 363 ) Total deferred tax liabilities $ ( 2,721 ) $ ( 2,138 ) Net deferred tax assets $ 5,447 $ 5,696 81 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements In assessing the Company’s ability to realize deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize all benefits related to these deductible differences. The Company has not established a valuation allowance as of December 31, 2025, 2024, and 2023. The Company does not have any net operating loss or tax credit carryforwards as of December 31, 2025. The Company is not presently under examination by the Internal Revenue Service or any state tax authority. The Company establishes reserves for uncertain tax positions that reflect management’s best estimate of deductions and credits that may not be sustained on a more-likely-than-not basis. Recognized income tax positions are measured at the largest amount that is considered greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. There were no uncertain tax positions as of December 31, 2025 and 2024, and 2023 and there were no interest or penalties related to uncertain tax positions reflected in the consolidated statements of comprehensive income for the years ended December 31, 2025, 2024, and 2023. On July 4, 2025, the President signed H.R. 1, the “One Big Beautiful Bill Act,” (“the Act”) into law. The legislation includes several changes to federal tax law that generally allow for more favorable deductibility of certain business expenses beginning in 2025, including the restoration of immediate expensing of domestic R&D expenditures, reinstatement of 100% bonus depreciation, and more favorable rules for determining the limitation on business interest expense. The Act also made certain changes to the deductibility of the cost of meals and charitable contributions that are effective for tax years beginning after December 31, 2025. These changes were not reflected in the income tax provision for the period ended December 31, 2025. The Company evaluated the impact on future periods and the legislation is not expected to have a significant impact on the Company’s consolidated financial statements. Note 10: Letters of Credit The Bank has entered into an arrangement with the FHLB resulting in the FHLB issuing letters of credit on behalf of the Bank to secure certain public fund deposits. Outstanding letters of credit to secure these public funds at December 31, 2025 and 2024 were $ 750,000 and $ 750,000 , respectively. Loans with a collateral value of approximately $ 214.5 million and $ 191.7 million were used to secure the letters of credit at December 31, 2025 and 2024, respectively. Note 11: Advances and Borrowings The Bank has a blanket floating lien security agreement with a maximum borrowing capacity of $ 213.8 million and $ 190.9 million at December 31, 2025 and December 31, 2024, respectively, with the FHLB, under which the Bank is required to maintain collateral for any advances, including its stock in the FHLB, as well as qualifying first mortgage and other loans. The Bank had no advances from the FHLB at December 31, 2025 or 2024. The Bank had additional liquidity with the Federal Reserve Bank of $ 288.6 million and $ 336.1 million as of December 31, 2025 and December 31, 2024, respectively. 82 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Note 12: Shareholders’ Equity On October 26, 2023, the Company adopted a Repurchase Plan (the “Plan”) authorizing the repurchase of up to 750,000 shares of the Company’s stock. On August 20, 2025, the Board of Directors approved the renewal of the Plan. Stock repurchases under the Plan take place pursuant to a Rule 10b5-1 Plan with pricing and purchasing parameters established by management. The Plan may be suspended or discontinued at any time. There were no share repurchases under the Plan during the period ending December 31, 2025. A summary of the activity under the repurchase plan is as follows: Year Ended December 31, 2025 2024 Number of shares repurchased - - Average price of shares repurchased $ - $ - Shares remaining to be repurchased 750,000 750,000 The Company and Bank are subject to risk-based capital guidelines issued by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under GAAP, regulatory reporting requirements and regulatory capital standards. The Company’s and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company’s and the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements. Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios (set forth in the following table) of total, Tier I, and Common Equity capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2025, that the Company and Bank meet all capital adequacy requirements to which it is subject and maintains capital conservation buffers that allow the Company and Bank to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to certain executive officers. As of December 31, 2025, the most recent notification from the Federal Deposit Insurance Corporation (FDIC) categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain capital ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. 83 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements The Company’s and Bank’s actual capital amounts and ratios are presented in the following table (dollars in thousands): Minimum To Be Well Capitalized Minimum With Capital Under Prompt Actual Capital Requirements Conservation Buffer Corrective Action Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2025 Total capital to risk-weighted assets Company $ 261,451 15.24 % $ 137,201 8.00 % $ 180,076 10.50 % N/A N/A Bank 261,411 15.25 % 137,120 8.00 % 179,970 10.50 % $ 171,400 10.00 % Tier I capital to risk-weighted assets Company 241,580 14.09 % 102,901 6.00 % 145,776 8.50 % N/A N/A Bank 241,540 14.09 % 102,840 6.00 % 145,690 8.50 % 137,120 8.00 % Common equity tier I capital to risk-weighted assets Company 241,580 14.09 % 77,175 4.50 % 120,051 7.00 % N/A N/A Bank 241,540 14.09 % 77,130 4.50 % 119,980 7.00 % 111,410 6.50 % Tier I capital to average assets Company 241,580 12.82 % 75,370 4.00 % N/A N/A N/A N/A Bank 241,540 12.82 % 75,370 4.00 % N/A N/A 94,213 5.00 % As of December 31, 2024 Total capital to risk-weighted assets Company $ 227,229 15.21 % $ 119,489 8.00 % $ 156,830 10.50 % N/A N/A Bank 227,189 15.22 % 119,408 8.00 % 156,723 10.50 % $ 149,260 10.00 % Tier I capital to risk-weighted assets Company 208,847 13.98 % 89,617 6.00 % 126,957 8.50 % N/A N/A Bank 208,807 13.99 % 89,556 6.00 % 126,871 8.50 % 119,408 8.00 % Common equity tier I capital to risk-weighted assets Company 208,847 13.98 % 67,213 4.50 % 104,553 7.00 % N/A N/A Bank 208,807 13.99 % 67,167 4.50 % 104,482 7.00 % 97,019 6.50 % Tier I capital to average assets Company 208,847 12.19 % 68,558 4.00 % N/A N/A N/A N/A Bank 208,807 12.18 % 68,558 4.00 % N/A N/A 85,698 5.00 % The federal banking agencies require that banking organizations meet several risk-based capital adequacy requirements. The current risk-based capital standards applicable to the Company and the Bank are based on the Basel III Capital Rules established by the Basel Committee on Banking Supervision (the “Basel Committee”). The Basel Committee is a committee of central banks and bank supervisors/regulators from the major industrialized countries that develops broad policy guidelines for use by each country’s supervisors in determining the supervisory policies they apply. The requirements are intended to ensure that banking organizations have adequate capital given the risk levels of assets and off-balance sheet financial instruments. The Basel III Capital Rules require the Bank and the Company to comply with four minimum capital standards: a Tier 1 leverage ratio of at least 4.0%; a Common Equity Tier 1 (“CET1”) capital to risk-weighted assets of 4.5%; a Tier 1 capital to risk-weighted assets of at least 6.0%; and a total capital to risk-weighted assets of at least 8.0%. The calculation of all types of regulatory capital is subject to definitions, deductions and adjustments specified in the regulations. 84 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements The Basel III Capital Rules also require a “capital conservation buffer” of 2.5% above the regulatory minimum risk-based capital requirements. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. Banking institutions with a ratio of CET1 to risk-weighted assets below the effective minimum (4.5% plus the capital conservation buffer) are subject to limitations on certain activities, including payment of dividends, share repurchases and discretionary bonuses to executive officers based on the amount of the shortfall. As of December 31, 2025, the Company’s and the Bank’s capital ratios exceeded the minimum capital adequacy guideline percentage requirements under the Basel III Capital Rules on a fully phased-in basis. The Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. At December 31, 2025, approximately $ 92.2 million of retained earnings was available for dividend declaration from the Bank without prior regulatory approval. Note 13: Related-Party Transactions At December 31, 2025 and December 31, 2024, the Company had loans outstanding to executive officers, directors, significant shareholders and their affiliates (related parties) in the amount of $ 10.5 million and $ 10.8 million, respectively. A summary of these loans is as follows (dollars in thousands): Balance Balance Beginning of Collections/ End of Year Ended December 31, the Period Additions Terminations the Period 2025 $ 10,846 $ 544 $ ( 939 ) $ 10,451 The Company holds deposits from related parties, including directors, executive officers, and their related interests. At December 31, 2025 these related party deposits totaled $ 66.6 million. These deposit balances represented 26.55 % of total stockholders’ equity at December 31, 2025. All such deposits were made in the ordinary course of business on substantially the same terms, including interest rates, as those prevailing at the time for comparable transactions with other persons. The Bank leases office and retail banking space in Oklahoma City and Woodward, Oklahoma from Central Park on Lincoln, LLC and Haines Realty Investments Company, LLC, respectively, both related parties of the Company. Lease expense totaled $ 326,000 , $ 286,000 and $ 251,000 for the years ended December 31, 2025, 2024 and 2023, respectively. In addition, payroll and office sharing arrangements were in place between the Company and certain of its affiliates. 85 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Note 14: Employee Benefits 401(k) Savings Plan The Company has a retirement savings 401(k) plan covering substantially all employees. Employees may contribute up to the maximum legal limit with the Bank matching up to 5 % of the employee’s salary. Employer contributions charged to expense for the years ended December 31, 2025, 2024 and 2023 totaled $ 438,000 , $ 434,000 and $ 399,000 , respectively. Stock-Based Compensation The Company adopted the Bank7 Corp. 2018 Equity Incentive Plan (the “Incentive Plan”) in September 2018. The Incentive Plan permits the grant of restricted stock units and nonqualified incentive stock options. The Incentive Plan will terminate in September 2028, if not extended. Compensation expense related to the Incentive Plan for the years ended December 31, 2025, 2024 and 2023 totaled $ 3,062,000 , $ 2,467,000 and $ 2,164,000 , respectively. There were 623,504 shares available for future grants as of December 31, 2025. The Company grants to employees and directors restricted stock units (“RSUs”), which vest ratably over one , three , four , five , or eight years and stock options which vest ratably over four years . All RSUs and stock options are granted at the fair value of the common stock at the time of the award. The RSUs are considered fixed awards as the number of shares and fair value are known at the date of grant and the fair value at the grant date is amortized over the vesting and/or service period. The Company uses newly issued shares for granting RSUs and stock options. The following table is a summary of the stock option activity under the Bank7 Corp. 2018 Equity Incentive Plan (dollar amounts in thousands, except share and per share data): Options Wgtd. Avg. Exercise Price Wgtd. Avg. Remaining Contractual Term Aggregate Intrinsic Value Year Ended December 31, 2025 Outstanding at December 31, 2024 75,688 $ 16.79 Options granted - - Options exercised ( 9,313 ) 15.59 Options forfeited - - Outstanding at December 31, 2025 66,375 16.96 3.96 $ 1,594,466 Exercisable at December 31, 2025 65,125 $ 16.83 3.91 $ 1,573,074 Wgtd. Avg. Remaining Contractual Term Aggregate Intrinsic Value Wgtd. Avg. Exercise Price Options Year Ended December 31, 2024 Outstanding at December 31, 2023 220,939 $ 17.52 Options granted - - Options exercised ( 144,813 ) 17.91 Options forfeited ( 438 ) 14.31 Outstanding at December 31, 2024 75,688 16.79 5.11 $ 2,283,513 Exercisable at December 31, 2024 54,812 $ 17.30 4.70 $ 1,625,802 The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model and is based on certain assumptions, including risk-free rate of return, dividend yield, stock price volatility and the expected term. The fair value of each option is expensed over its vesting period. 86 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements There were no options granted during the years ended December 31, 2025 and December 31, 2024. The following table summarizes share information about RSUs for the years ended December 31, 2025 and 2024: Number of Shares Wgtd. Avg. Grant Date Fair Value Year Ended December 31, 2025 Outstanding at December 31, 2024 236,239 $ 27.54 Shares granted 108,803 44.33 Shares vested ( 92,396 ) 25.96 Shares forfeited ( 1,975 ) 30.57 End of the period balance 250,671 $ 35.38 Number of Shares Wgtd. Avg. Grant Date Fair Value Year Ended December 31, 2024 Outstanding at December 31, 2023 211,461 $ 26.98 Shares granted 100,606 27.34 Shares vested ( 68,578 ) 25.46 Shares forfeited ( 7,250 ) 28.29 End of the period balance 236,239 $ 27.54 As of December 31, 2025, there was approximately $ 6.4 million of unrecognized compensation expense related to 251,000 unvested RSUs and $ 11,000 of unrecognized compensation expense related to 66,000 unvested and/or unexercised stock options. The RSU expense is expected to be recognized over a weighted average period of 3.76 years, the stock option expense is expected to be recognized over a weighted average period of 0.67 years. As of December 31, 2024, there was approximately $ 4.7 million of unrecognized compensation expense related to 236,000 unvested RSUs and $ 18,000 of unrecognized compensation expense related to 76,000 unvested and/or unexercised stock options. The RSU expense is expected to be recognized over a weighted average period of 3.17 years, the stock option expense is expected to be recognized over a weighted average period of 1.51 years. 87 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Note 15: Disclosures about Fair Value of Assets and Liabilities Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs supported by little or no market activity and significant to the fair value of the assets or liabilities Recurring Measurements Assets and liabilities measured at fair value on a recurring basis include the following: Available-for-sale securities: Debt securities classified as available-for-sale, as discussed in Note 4 are reported at fair value utilizing Level 2 inputs. For those debt securities classified as Level 2, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U. S. Treasury yield curve, live trading levels, trade execution data for similar securities, market consensus prepayments speeds, credit information and the bond’s terms and conditions, among other things. Nonrecurring Measurements The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2025 and December 31, 2024 (dollars in thousands): Fair Value (Level 1) (Level 2) (Level 3) December 31, 2025 Collateral-dependent loans $ 369 $ - $ - $ 369 December 31, 2024 Collateral-dependent loans $ 3,209 $ - $ - $ 3,209 88 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Collateral-Dependent Loans, Net of Allowance for Credit Losses The estimated fair value of collateral-dependent loans is based on fair value, less estimated cost to sell. Collateral-dependent loans are classified within Level 3 of the fair value hierarchy. The Company considers appraisal analysis as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Values of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by executive management and loan administration. Values are reviewed for accuracy and consistency by executive management and loan administration. The ultimate collateral values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Valuation Unobservable Fair Value Technique Inputs December 31, 2025 Collateral-dependent loans $ 369 Estimated cash to be received pending liquidation of collateral Estimated cost to sell December 31, 2024 Collateral-dependent loans $ 3,209 Estimated cash to be received pending liquidation of collateral Estimated cost to sell 89 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements The following table presents estimated fair values of the Company’s financial instruments not recorded at fair value at December 31, 2025 and December 31, 2024 (dollars in thousands): Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Total December 31, 2025 Financial Assets Cash and due from banks $ 244,635 $ 244,635 $ - $ - $ 244,635 Interest-bearing timedeposits in other banks 10,457 - 10,457 - 10,457 Loans, net 1,587,024 - 1,605,518 369 1,605,887 Loans held for sale 2,078 - 2,078 - 2,078 Nonmarketable equity securities 1,165 - 1,165 - 1,165 Interest receivable 8,822 - 8,822 - 8,822 Financial Liabilities Deposits $ 1,700,833 $ - $ 1,700,646 $ - $ 1,700,646 Interest payable 1,122 - 1,122 - 1,122 December 31, 2024 Financial Assets Cash and due from banks $ 234,196 $ 234,196 $ - $ - $ 234,196 Interest-bearing time deposits in other banks 6,719 - 6,719 - 6,719 Loans, net 1,379,465 - 1,392,299 3,209 1,395,508 Nonmarketable equity securities 1,283 - 1,283 - 1,283 Interest receivable 8,841 - 8,841 - 8,841 Financial Liabilities Deposits $ 1,515,471 $ - $ 1,515,023 $ - $ 1,515,023 Interest payable 1,182 - 1,182 - 1,182 90 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value: Cash and Due from Banks, Interest-Bearing Time Deposits in Other Banks, Nonmarketable Equity Securities, Interest Receivable, Interest Payable The carrying amount approximates fair value. Loans The Company determines fair value of loans by using exit market price assumptions including factors such as liquidity, credit quality and risk of nonperformance. The fair value is estimated by discounting the future cash flows using the market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations. Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Because these loans are typically sold shortly after origination, their carrying value generally approximates fair value. Deposits Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount of these deposits approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Commitments to Extend Credit, Lines of Credit and Standby Letters of Credit The fair values of unfunded commitments are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The fair values of standby letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. The estimated fair values of the Company’s commitments to extend credit, lines of credit and standby letters of credit were not material at December 31, 2025 or December 31, 2024. 91 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Note 16: Financial Instruments with Off-Balance Sheet Risk The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the accompanying consolidated balance sheets. The following summarizes those financial instruments with contract amounts representing credit risk as of December 31, 2025 and December 31, 2024 (dollars in thousands): Year Ended December 31, 2025 2024 Commitments to extend credit $ 324,748 $ 272,261 Financial and performance standby letters of credit 19,540 11,333 $ 344,288 $ 283,594 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Each instrument generally has fixed expiration dates or other termination clauses. Since many of the instruments are expected to expire without being drawn upon, total commitments to extend credit amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, by the Company upon extension of credit is based on management’s credit evaluation of the customer. Standby letters of credit are irrevocable conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The reserve for unfunded loan commitments totaled $ 464,000 at December 31, 2025 and December 31, 2024. Note 17: Concentrations GAAP requires disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses are reflected in Note 5 regarding loans. As of December 31, 2025, hospitality loans were 19.3 % of gross total loans with outstanding balances of $ 310.6 million and unfunded commitments of $ 17.8 million; energy loans were 9.7 % of gross total loans with outstanding balances of $ 156.8 million and unfunded commitments of $ 72.4 million; construction. 92 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Note 18: Operating Leases Lessee The Company has operating leases, which primarily consist of office space in buildings, ATM locations, equipment and land on which it owns certain buildings. Rental expense on all operating leases, including those rented on a monthly or temporary basis were as follows (dollars in thousands): Year Ending December 31: 2025 $ 834 2024 1,068 2023 1,001 As of December 31, 2025, a right of use lease asset included in interest receivable and other assets on the consolidated balance sheet totaled $ 2.1 million, and a related lease liability included in accrued interest payable and other liabilities on the consolidated balance sheet totaled $ 2.1 million. As of December 31, 2025, our operating leases have a weighted-average remaining lease term of 13.8 years and a weighted-average discount rate of 3.9 percent. Future minimum rental commitments of branch facilities and office equipment due under non-cancelable operating leases at December 31, 2025, were as follows (dollars in thousands): 2026 $ 621 2027 499 2028 299 2029 231 2030 137 Thereafter 657 Total lease payments 2,444 Less imputed interest ( 298 ) Operating lease liability $ 2,146 93 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Note 19: Parent-only Financial Statements Balance Sheets December 31, Assets 2025 2024 Cash and due from banks $ 40 $ 40 Investment in bank subsidiary 249,944 212,162 Dividends receivable 2,555 2,254 Goodwill 1,011 1,011 Total assets $ 253,550 $ 215,467 Liabilities and Shareholders’ Equity Dividends payable $ 2,555 $ 2,254 Other liabilities - - Total liabilities 2,555 2,254 Total shareholders’ equity 250,995 213,213 Total liabilities and shareholders’ equity $ 253,550 $ 215,467 Statements of Comprehensive Income For the Years Ended December 31, 2025 2024 2023 Income Dividends from subsidiary bank $ 9,643 $ 8,379 $ 6,790 Total income 9,643 8,379 6,790 Expense Other - - - Total expense - - - Income and equity in undistributed net income of bank subsidiary 9,643 8,379 6,790 Equity in undistributed net income of bank subsidiary 33,426 37,319 21,485 Income before Taxes 43,069 45,698 28,275 Income tax expense - - - Net Income Available to Common Shareholders $ 43,069 $ 45,698 $ 28,275 Other Comprehensive Income Equity in other comprehensive income of subsidiary $ 2,425 $ 1,174 $ 3,158 Other comprehensive gain $ 2,425 $ 1,174 $ 3,158 Comprehensive Income $ 45,494 $ 46,872 $ 31,433 94 Table of Contents Bank7 Corp. Notes to Consolidated Financial Statements Statements of Cash Flows For the Years Ended December 31, 2025 2024 2023 Operating Activities Net income $ 43,069 $ 45,698 $ 28,275 Items not requiring (providing) cash Equity in undistributed net income ( 33,426 ) ( 37,319 ) ( 21,485 ) Changes in Other current assets and liabilities ( 302 ) ( 324 ) ( 725 ) Net cash provided by operating activities 9,341 8,055 6,065 Financing Activities Common stock issued, net of offering costs 1 2 1 Dividends paid ( 9,342 ) ( 8,057 ) ( 6,323 ) Net cash used in financing activities ( 9,341 ) ( 8,055 ) ( 6,322 ) Increase (Decrease) in Cash and Due from Banks - - ( 257 ) Cash and Due from Banks, Beginning of Period 40 40 297 Cash and Due from Banks, End of Period $ 40 $ 40 $ 40 Supplemental Disclosure of Cash Flows Information Dividends declared and not paid $ 2,555 $ 2,254 $ 1,932 95 Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.