Employee Benefits

3 Months Ended

Mar. 31, 2026

Note 8: 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 Company matching up to 5% of the employee’s salary. Employer contributions charged to expense for the three months ended March 31, 2026 and 2025 totaled $129,000 and $116,000, 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 three months ended March 31, 2026 and 2025 totaled $659,000 and $652,000, respectively.

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
Three Months Ended March 31, 2026
Outstanding at December 31, 2025		66,375		$	16.96
Options granted		-			-
Options exercised		(2,500	)		19.00
Options forfeited		-			-
Outstanding at March 31, 2026		63,875			16.88		3.76	$	1,469,254
Exercisable at March 31, 2026		62,625		$	16.74		3.71	$	1,449,236

	Options			Wgtd. Avg. Exercise Price		Wgtd. Avg. Remaining Contractual Term		Aggregate Intrinsic Value
Three Months Ended March 31, 2025
Outstanding at December 31, 2024		75,688		$	16.79
Options granted		-			-
Options exercised		(7,063	)		14.31
Options forfeited		-			-
Outstanding at March 31, 2025		68,625			17.05		4.77	$	1,488,809
Exercisable at March 31, 2025		66,125		$	16.79		4.68	$	1,451,624

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.

There were no new grants for the three months ended March 31, 2026 and 2025.

The following table summarizes share information about RSUs for the three months ended March 31, 2026 and 2025:

	Number of Shares			Wgtd. Avg. Grant Date Fair Value
Three Months Ended March 31, 2026
Outstanding at December 31, 2025		250,671		$	35.38
Shares granted		-			-
Shares vested		(80,925	)		32.67
Shares forfeited		(1,450	)		32.62
End of the period balance		168,296		$	36.71

	Number of Shares			Wgtd. Avg. Grant Date Fair Value
Three Months Ended March 31, 2025
Outstanding at December 31, 2024		236,239		$	27.54
Shares granted		69,589			43.17
Shares vested		(74,338	)		26.96
Shares forfeited		-			-
End of the period balance		231,490		$	32.42

As of March 31, 2026, there was approximately $5.7 million of unrecognized compensation expense related to 168,296 unvested RSUs and $2,000 of unrecognized compensation expense related to 63,875 unvested stock options. The RSU expense is expected to be recognized over a weighted average period of 3.69 years, the stock option expense is expected to be recognized over a weighted average period of 0.45 years.

As of March 31, 2025, there was approximately $7.1 million of unrecognized compensation expense related to 231,490 unvested RSUs and $14,000 of unrecognized compensation expense related to 68,625 unvested and/or unexercised stock options. The RSU expense is expected to be recognized over a weighted average period of 1.39 years, the stock option expense is expected to be recognized over a weighted average period of 3.15 years.