Bank7 acquires First American Mortgage to bolster services

OKLAHOMA CITY - Bank7 (NASDAQ:BSVN), an Oklahoma-based financial institution with a market capitalization of $386 million, has announced the acquisition of First American Mortgage, Inc., a longstanding company in the residential mortgage lending sector. This acquisition is set to enhance Bank7’s mortgage division and expand its financial services to customers within its service regions. According to InvestingPro data, Bank7 maintains a "GREAT" financial health score, positioning it well for strategic growth opportunities.

First American Mortgage, Inc., with over three decades of industry presence, is recognized for its personalized lending solutions and customer service. Dale Bogle, the company’s President and Owner, has been instrumental in its success. The integration with Bank7 is expected to enrich the customer experience by combining the strengths of both entities. Bank7 has demonstrated strong financial performance, with revenue growth of 38% in the last twelve months and a competitive P/E ratio of 8.4.

Jason Estes, President and CCO of Bank7, expressed enthusiasm about the acquisition, emphasizing the alignment with the company’s growth strategy and commitment to customer service. "We’re excited to expand Bank7 by joining with Dale and his great team of professionals," said Estes.

Dale Bogle also commented on the merger, highlighting the benefits for clients and referral partners. "Partnering with Bank7 allows us to enhance our offerings while maintaining the same dedication to our clients," Bogle stated.

The acquisition is in line with Bank7’s strategic goals for expansion and innovation, aiming to reinforce its position as a community-focused financial institution. Customers of both Bank7 and First American Mortgage can anticipate access to a broader network of lending professionals and more streamlined processes. The bank has shown commitment to shareholder returns, having raised its dividend for four consecutive years, with a current yield of 2.36%.

Bank7 operates twelve locations across Oklahoma, the Dallas/Fort Worth area in Texas, and Kansas. The company is known for its focus on serving business owners and entrepreneurs with efficient loan and deposit products. It plans to continue its growth through selective branch openings and strategic acquisitions. InvestingPro analysis indicates the stock is currently trading slightly below its Fair Value, with multiple ProTips highlighting strong returns over both the past year and five-year periods. For detailed insights and comprehensive analysis, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.

First American Mortgage has been locally owned since 1993 and has facilitated over $3 billion in funding, helping approximately 18,000 families achieve homeownership.

The information for this article is based on a press release statement.

In other recent news, Bank7 Corp reported a robust financial performance for the fourth quarter of 2024, with earnings per share (EPS) reaching $1.16, surpassing analysts’ forecasts of $1.05. The company’s revenue for the quarter was $24.14 million, exceeding the expected $23.51 million. Despite this strong performance, the stock experienced a decline, reflecting broader market concerns. Piper Sandler analyst Nathan Race raised the price target for Bank7 to $55, citing the bank’s strong profitability and potential for organic growth, while maintaining an Overweight rating. Conversely, Keefe, Bruyette & Woods adjusted their price target to $52, maintaining an Outperform rating, driven by Bank7’s better-than-expected net interest margin and lower provisioning. Analysts from both firms noted the bank’s solid capital position and potential for mergers and acquisitions, particularly in Texas. Bank7’s net interest margin remained stable between 4.50% and 4.70%, and the bank maintained a disciplined approach to balance sheet management. Looking forward, Bank7 is targeting low single-digit loan growth and exploring further M&A opportunities, reflecting confidence in its future performance.

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