OKLAHOMA CITY, April 12, 2024 /PRNewswire/ -- Bank7 Corp. (NASDAQ: BSVN) ("the Company"), the parent company of Oklahoma City-based Bank7 (the "Bank"), today reported unaudited results for the quarter ended March 31, 2024.  "We are pleased with the strength of our core earnings, as evidenced by our pre-tax, pre-provision earnings (PPE).  The Company's continued ability to exceed historical PPE is a function of our position in dynamic geographic markets, our long-term and broad-based deposit relationships, our debt-free and liquid balance sheet, and our disciplined approach to cost controls. Further, the Company's credit quality remains a point of strength with minimal exposure to office and retail commercial real estate," said Thomas L. Travis, President and CEO of the Company." 

Bank7 Logo (PRNewsfoto/Bank7 Corp.)

For the three months ended March 31, 2024 compared to the three months ended March 31, 2023:

  • Net income of $11.3 million compared to $9.6 million, an increase of 17.50%
  • Earnings per share of $1.21 compared to $1.04, an increase of 16.35%
  • Total assets of $1.8 billion compared to $1.7 billion, an increase of 6.89%
  • Total loans of $1.4 billion compared to $1.3 billion, an increase of 7.39%
  • PPE of $14.9 million compared to $13.0 million, an increase of 14.22%
  • Total interest income of $33.3 million compared to $27.4 million, an increase of 21.57%

Both the Bank's and the Company's capital levels continue to be significantly above the minimum levels required to be designated as "well-capitalized" for regulatory purposes.  On March 31, 2024, the Bank's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 10.10%, 12.11%, and 13.36%, respectively.  On March 31, 2024, on a consolidated basis, the Company's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 10.11%, 12.11%, and 13.36%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators. 

Non-GAAP Financial Measures:
This earnings release contains the non-GAAP financial measure pre-provision pre-tax earnings ("PPE").  The Company's management uses this non-GAAP measure in their analysis of the Company's performance.  This measure adjusts GAAP performance to exclude from net income, income tax expense, provision for credit losses, and loss on sales and calls of available-for-sale debt securities.


For the Three Months Ended


Mar 31, 2024


Mar 31, 2023

Calculation of Pre-Provision Pre-Tax Earnings ("PPE")

(Dollars in thousands)

Net Income

$                   3,595


$                   2,947

Income Tax Expense

14,883


12,554

Pre-tax net income

14,883


12,554

Add back: Provision for credit losses

-


1

Add back: (Gain)Loss on sales/calls of AFS debt securities

14,883


13,030

Pre-provision pre-tax earnings

14,883


13,030

 

Bank7 Corp.


Consolidated Balance Sheets











Assets

March 31, 2024
(unaudited)


December 31,
2023







Cash and due from banks

$               193,218


$               181,042


Interest-bearing time deposits in other banks

17,181


17,679


Available-for-sale debt securities

151,872


169,487


Loans, net of allowance for credit losses of $19,696 and





$19,691 at March 31, 2024 and December 31, 2023, respectively

1,354,195


1,341,148


Loans held for sale, at fair value

-


718


Premises and equipment, net

15,376


14,942


Nonmarketable equity securities

1,278


1,283


Core deposit intangibles

970


1,031


Goodwill

8,458


8,458


Interest receivable and other assets

32,435


35,878







Total assets

$            1,774,983


$            1,771,666







Liabilities and Shareholders' Equity










Deposits





Noninterest-bearing

$               452,326


$               482,349


Interest-bearing

1,127,846


1,109,042







Total deposits

1,580,172


1,591,391







Income taxes payable

3,946


302


Interest payable and other liabilities

10,483


9,647







Total liabilities

1,594,601


1,601,340







Shareholders' equity





Common stock, $0.01 par value; 50,000,000 shares authorized; shares 





issued and outstanding: 9,238,206 and 9,197,696 at March 31, 2024 





and December 31, 2023, respectively

92


92







Additional paid-in capital

97,669


97,417


Retained earnings

88,310


78,962


Accumulated other comprehensive loss

(5,689)


(6,145)







Total shareholders' equity

180,382


170,326







Total liabilities and shareholders' equity

$            1,774,983


$            1,771,666


 



Three Months Ended



March 31,



2024
(unaudited)


2023

Interest Income





Loans, including fees


$          30,117


$        25,352

Interest-bearing time deposits in other banks


253


49

Debt securities, taxable


1,012


706

Debt securities, tax-exempt


73


87

Other interest and dividend income


1,832


1,186






Total interest income


33,287


27,380






Interest Expense





Deposits


11,277


7,374






Total interest expense


11,277


7,374






Net Interest Income


22,010


20,006






Provision for Credit Losses


-


475






Net Interest Income After Provision for Credit Losses


22,010


19,531






Noninterest Income





Mortgage lending income


51


54

Loss on sales, prepayments, and calls of available-for-sale debt securities


-


(1)

Service charges on deposit accounts


249


235

Other


1,708


384






Total noninterest income


2,008


672






Noninterest Expense





Salaries and employee benefits


5,289


4,680

Furniture and equipment


230


249

Occupancy


661


719

Data and item processing


458


386

Accounting, marketing and legal fees


99


298

Regulatory assessments


386


394

Advertsing and public relations


145


148

Travel, lodging and entertainment


51


61

Other


1,816


714






Total noninterest expense


9,135


7,649






Income Before Taxes


14,883


12,554

Income tax expense


3,595


2,947

Net Income


$          11,288


$          9,607






Earnings per common share - basic


$              1.22


$            1.05

Earnings per common share - diluted


1.21


1.04

Weighted average common shares outstanding - basic


9,220,154


9,146,932

Weighted average common shares outstanding - diluted


9,317,813


9,264,247






Other Comprehensive Income





Unrealized gains on securities, net of tax expense of $0 and $554 for the three months





ended March 31, 2024 and 2023, respectively


$               456


$          1,755

Reclassification adjustment for realized losses included in net income net of tax of $0 and $0




for the three months ended March 31, 2024 and 2023, respectively


-


1

Other comprehensive income


$               456


$          1,756

Comprehensive Income


$          11,744


$        11,363

 



Net Interest Margin



For the Three Months Ended March 31,



2024
(unaudited)


2023



Average
Balance


Interest
Income/
Expense


Average
Yield/
Rate


Average
Balance


Interest
Income/
Expense


Average
Yield/
Rate



(Dollars in thousands)

Interest-Earning Assets:













Short-term investments


$        176,072


$        2,085


4.75 %


$        134,650


$        1,235


3.72 %

Debt securities, taxable-equivalent


153,468


1,012


2.64


153,533


706


1.86

Debt securities, tax exempt


18,269


73


1.60


20,318


87


1.74

Loans held for sale


238


-


-


43


-


-

Total loans(1)


1,369,692


30,117


8.82


1,271,081


25,352


8.09

Total interest-earning assets


1,717,739


33,287


7.77


1,579,625


27,380


7.03

Noninterest-earning assets


39,769






23,542





Total assets


$     1,757,508






$     1,603,167


















Funding sources:













Interest-bearing liabilities:













Deposits:













Transaction accounts


$        845,129


8,196


3.89 %


$        803,618


5,753


2.90 %

Time deposits


264,973


3,081


4.66


213,760


1,621


3.08

Total interest-bearing deposits


1,110,102


11,277


4.07


1,017,378


7,374


2.94

Total interest-bearing liabilities


$     1,110,102


11,277


4.07


$     1,017,378


7,374


2.94














Noninterest-bearing liabilities:













Noninterest-bearing deposits


$        460,028






$        425,640





Other noninterest-bearing liabilities


10,970






11,131





Total noninterest-bearing liabilities


470,998






436,771





Shareholders' equity


176,408






149,018





Total liabilities and shareholders' equity


$     1,757,508






$     1,603,167


















Net interest income




$      22,010






$      20,006



Net interest spread






3.70 %






4.10 %

Net interest margin






5.14 %






5.14 %

(1)

 Nonaccrual loans are included in total loans

 

About Bank7 Corp. 

We are Bank7 Corp., a bank holding company headquartered in Oklahoma City, Oklahoma. Through our wholly-owned subsidiary, Bank7, we operate twelve locations in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area and Kansas. We are focused on serving business owners and entrepreneurs by delivering fast, consistent and well-designed loan and deposit products to meet their financing needs. We intend to grow organically by selectively opening additional branches in our target markets as well as pursue strategic acquisitions.

Conference Call

Bank7 Corp. has scheduled a conference call to discuss its first quarter results, which will be broadcast live over the Internet, on Friday, April 12, 2024 at 9:00 a.m. central standard time. To participate in the call, dial 1-888-348-6421, or access it live over the Internet at https://app.webinar.net/w8qEpOZ7G6v. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/w8qEpOZ7G6v shortly after the call for 1 year.

Cautionary Statements Regarding Forward-Looking Information 

This communication contains a number of forward-looking statements. These forward-looking statements reflect Bank7 Corp.'s current views with respect to, among other things, future events and Bank7 Corp.'s financial performance. Any statements about Bank7 Corp.'s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "believes," "can," "could," "may," "predicts," "potential," "should," "will," "estimate," "plans," "projects," "continuing," "ongoing," "expects," "intends" and similar words or phrases. Any or all of the forward-looking statements in (or conveyed orally regarding) this presentation may turn out to be inaccurate. The inclusion of or reference to forward-looking information in this presentation should not be regarded as a representation by Bank7 Corp. or any other person that the future plans, estimates or expectations contemplated by Bank7 Corp. will be achieved.

These forward-looking statements are subject to significant uncertainties because they are based upon:  the amount and timing of future changes in interest rates, market behavior, and other economic conditions; future laws, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters.  These other matters include, among other things, the impact the direct and indirect effect of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators.  Bank7 Corp. has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that Bank7 Corp. believes may affect its financial condition, results of operations, business strategy and financial needs. Bank7 Corp.'s actual results could differ materially from those anticipated in such forward-looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. If one or more events related to these or other risks or uncertainties materialize, or if Bank7 Corp.'s underlying assumptions prove to be incorrect, actual results may differ materially from what Bank7 Corp. anticipates. You are cautioned not to place undue reliance on forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made and Bank7 Corp. undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as may be required by law. All forward-looking statements herein are qualified by these cautionary statements.

Contact:

Thomas Travis
President & CEO
(405) 810-8600

 

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SOURCE Bank7 Corp.

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