Bank7 Corp. Announces Q1 2022 Earnings

Rhea-AI Summary

Bank7 Corp. (NASDAQ: BSVN) reported a strong fiscal Q1 2022, with net income rising 21.2% to $6.2 million and earnings per share increasing 21.5% to $0.68. Total assets grew by 35.9% to $1.4 billion, while total loans reached $1.1 billion, reflecting a 23.3% increase. Deposits surged 38.1% to $1.3 billion. The company maintains robust capital ratios, with Tier 1 leverage at 9.27% and total risk-based capital at 12.54%, significantly above regulatory requirements. The CEO emphasized the bank's advantageous geographic positioning and asset sensitivity for future growth.

Positive

• Net income increased 21.2% to $6.2 million.
• Earnings per share rose 21.5% to $0.68.
• Total assets grew 35.9% to $1.4 billion.
• Total loans increased by 23.3% to $1.1 billion.
• Total deposits jumped 38.1% to $1.3 billion.
• Strong capital ratios: Tier 1 leverage at 9.27%.
• Well-capitalized status maintained under regulatory standards.

Negative

• Net interest margin decreased from 5.12% in Q1 2021 to 4.43% in Q1 2022.
• Increased noninterest expenses by 41.3% year-over-year.

OKLAHOMA CITY, April 26, 2022 /PRNewswire/ -- Bank7 Corp. (NASDAQ: BSVN) ("the Company"), the parent company of Oklahoma City-based Bank7 (the "Bank"), today reported unaudited results for the fiscal quarter ended March 31, 2022.  "We are pleased with the strength of our core earnings, as evidenced by the healthy growth in our pre-tax, pre-provision earnings (PPE).  Our PPE is best in class and consistently exceeds our peers.  We continue to benefit from our dynamic geographic markets, and we are also extremely asset sensitive, which positions us well for the remainder of 2022," said Thomas L. Travis, President and CEO of the Company. 

Three months ended March 31, 2022 compared to three months ended March 31, 2021

• Net income of $6.2 million compared to $5.1 million, an increase of 21.2%
• Earnings per share of $0.68 compared to $0.56, an increase of 21.5%
• Total assets of $1.4 billion compared to $1.0 billion, an increase of 35.9%
• Total loans of $1.1 billion compared to $861.4 million, an increase of 23.3%
• Total deposits of $1.3 billion compared to $929 million, an increase of 38.1%

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, 2022, the Bank's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 9.28%, 11.56%, and 12.56%, respectively.  On March 31, 2022, on a consolidated basis, the Company's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 9.27%, 11.54%, and 12.54%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

 

Bank7 Corp.
Consolidated Balance Sheets
	March 31, 2022 (unaudited)		December 31, 2021
Assets
Cash and due from banks	$         126,275		$         195,359
Federal funds sold	8,088		9,493
Cash and cash equivalents	134,363		204,852
Interest-bearing time deposits in other banks	2,241		3,237
Available-for-sale debt securities	198,356		84,808
Loans, net of allowance for loan losses of $10,599 and
$10,316 at March 31, 2022 and December 31, 2021, respectively	1,051,222		1,018,085
Loans held for sale, at fair value	597		464
Premises and equipment, net	13,775		17,257
Nonmarketable equity securities	1,195		1,202
Core deposit intangibles	1,565		1,643
Goodwill	8,807		8,479
Interest receivable and other assets	9,111		10,522
Total assets	$      1,421,232		$      1,350,549
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing	$         420,972		$         366,705
Interest-bearing	862,307		850,766
Total deposits	1,283,279		1,217,471
Income taxes payable	2,610		-
Interest payable and other liabilities	6,695		5,670
Total liabilities	1,292,584		1,223,141
Shareholders' equity
Common stock, $0.01 par value; 50,000,000 shares authorized; shares
issued and outstanding: 9,094,468 and 9,071,417 at	91		91
March 31, 2022 and December 31, 2021 respectively
Additional paid-in capital	94,310		94,024
Retained earnings	38,242		33,149
Accumulated other comprehensive income	(3,995)		144
Total shareholders' equity	128,648		127,408
Total liabilities and shareholders' equity	$      1,421,232		$      1,350,549

 

 

Bank7 Corp.
Consolidated Statements of Income
		Unaudited as of
		Three Months Ended March 31,
		2022		2021
Interest Income
Loans, including fees		$                       14,377		$                       13,094
Interest-bearing time deposits in other banks		16		68
Debt securities, taxable		364		-
Debt securities, tax-exempt		98		-
Other interest and dividend income		70		26
Total interest income		14,925		13,188
Interest Expense
Deposits		717		875
Total interest expense		717		875
Net Interest Income		14,208		12,313
Provision for Loan Losses		276		1,275
Net Interest Income After Provision for Loan Losses		13,932		11,038
Noninterest Income
Secondary market income		166		14
Loss on sales of available-for-sale debt securities		(127)		-
Service charges on deposit accounts		249		120
Other		387		203
Total noninterest income		675		337
Noninterest Expense
Salaries and employee benefits		4,026		2,790
Furniture and equipment		358		202
Occupancy		551		472
Data and item processing		387		279
Accounting, marketing and legal fees		233		148
Regulatory assessments		196		141
Advertising and public relations		110		34
Travel, lodging and entertainment		48		89
Other		511		390
Total noninterest expense		6,420		4,545
Income Before Taxes		8,187		6,830
Income tax expense		2,003		1,726
Net Income		$                         6,184		$                         5,104
Earnings per common share - basic		$                           0.68		$                           0.56
Earnings per common share - diluted		0.68		0.56
Weighted average common shares outstanding - basic		9,088,975		9,049,007
Weighted average common shares outstanding - diluted		9,133,116		9,058,685
Other Comprehensive Income
Unrealized losses on securities, net of tax benefit of $1.5 million		$                        (3,995)		$                           -
Reclassification adjustment for realized loss included in net income		(127)		-
Other comprehensive gain, net of tax benefit of $1.5 million		$                        (4,122)		$                                 -
Comprehensive Income		$                         2,062		$                         5,104

 

 

		Net Interest Margin
		For the Three Months Ended March 31,
		2022						2021
		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		$      187,672		$          84		0.18%		$ 125,739		$          92		0.30%
Investment securities, taxable-equivalent		87,886		366		1.69		1,172		2		0.69
		23,969		99		1.68		-		-		-
Loans held for sale		487		-		-		378		-		-
Total loans(1)		1,003,890		14,417		5.82		847,498		13,094		6.27
Total interest-earning assets		1,303,904		14,966		4.65		974,787		13,188		5.49
Noninterest-earning assets		24,342						7,103
Total assets		$   1,328,246						$ 981,890
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$      636,446		455		0.29%		$ 419,991		362		0.35%
Time deposits		169,602		259		0.62		205,557		513		1.01
Total interest-bearing deposits		806,048		714		0.36		625,548		875		0.57
Total interest-bearing liabilities		806,048		714		0.36		625,548		875		0.57
Noninterest-bearing liabilities:
Noninterest-bearing deposits		$      385,664						243,290
Other noninterest-bearing liabilities		6,301						4,193
Total noninterest-bearing liabilities		391,965						247,483
Shareholders' equity		130,233						108,859
Total liabilities and shareholders' equity		$   1,328,246						$ 981,890
Net interest income				$   14,252						$   12,313
Net interest spread						4.30%						4.92%
Net interest margin						4.43%						5.12%
(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 Tuesday, April 26, 2022 at 3:00 p.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/DLPzBJ2Bd7r. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/DLPzBJ2Bd7r 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 of COVID-19 on the United States economy and our operations, 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.

FAQ

What were Bank7 Corp's earnings results for Q1 2022?

Bank7 Corp. reported net income of $6.2 million and earnings per share of $0.68 for Q1 2022.

How much did Bank7 Corp's total assets increase in Q1 2022?

Total assets increased by 35.9% to $1.4 billion in Q1 2022 compared to the previous year.

What is the Tier 1 leverage ratio for Bank7 Corp?

As of March 31, 2022, Bank7 Corp's Tier 1 leverage ratio was 9.27%.

What was the growth in total deposits for Bank7 Corp?

Total deposits surged 38.1% to $1.3 billion in Q1 2022.

What challenges did Bank7 Corp face in Q1 2022?

Bank7 Corp experienced a decrease in net interest margin from 5.12% to 4.43% and increased noninterest expenses by 41.3% year-over-year.