Bank7 Corp.BSVN
Bank7 Corp. Income Taxes Disclosure
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 made up the majority (greater than 50 percent) of the tax effect in this category.
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 |
||||
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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 17, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 25, 2024 | |
| 2022 | Mar 24, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 25, 2021 | |
| 2019 | Mar 30, 2020 | |
| 2018 | Mar 29, 2019 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.