Bank7 Corp. Announces Q2 2022 Earnings

Rhea-AI Summary

Bank7 Corp. (NASDAQ: BSVN) reported a robust fiscal quarter ending June 30, 2022, with net income rising 13.5% to $7.0 million and diluted earnings per share increasing 13.4% to $0.76. The company's total assets reached $1.5 billion, growing 4.7%, while total loans climbed 8.5% to $1.2 billion. Total interest income also saw a significant rise of 11.7% to $16.7 million. The capital levels remain well above regulatory requirements, reinforcing the company’s strong financial health.

Positive

• Net income increased 13.5% to $7.0 million.
• Diluted EPS rose 13.4% to $0.76.
• Total assets grew 4.7% to $1.5 billion.
• Total loans increased 8.5% to $1.2 billion.
• Total interest income up 11.7% to $16.7 million.

Negative

• Provision for loan losses increased to $219,000 from $1,300, indicating potential credit quality concerns.

OKLAHOMA CITY, July 27, 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 June 30, 2022.  "We are pleased to announce a strong quarter, as evidenced by record net income and earnings per share. Our dynamic geographic markets, strong loan growth and asset sensitive balance sheet, combined with our talented bankers, continues to produce outstanding results.  As we move forward, we intend to continue producing exceptional results through organic growth and strategic acquisitions," said Thomas L. Travis, President and CEO of the Company. 

Three months ended June 30, 2022 compared to three months ended March 31, 2022 

• Net income of $7.0 million compared to $6.2 million, an increase of 13.5%
• Diluted Earnings per share of $0.76 compared to $0.67, an increase of 13.4%
• Total assets of $1.5 billion compared to $1.4 billion, an increase of 4.7%
• Total loans of $1.2 billion compared to $1.1 billion, an increase of 8.5%
• PPE of $9.5 million compared to $8.6 million, an increase of 12.3%
• Total interest income of $16.7 million compared to $14.9 million, an increase of 11.7%

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 June 30, 2022, the Bank's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 8.97%, 11.21%, and 12.14%, respectively.  On June 30, 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 8.97%, 11.20%, and 12.14%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

 

Bank7 Corp.
Consolidated Balance Sheets
	June 30, 2022 (unaudited)		December 31, 2021
Assets
Cash and due from banks	$          123,686		$               195,359
Federal funds sold	-		9,493
Cash and cash equivalents	123,686		204,852
Interest-bearing time deposits in other banks	1,992		3,237
Available-for-sale debt securities	185,048		84,808
Loans, net of allowance for loan losses of $10,819 and
$10,316 at June 30, 2022 and December 31, 2021, respectively	1,141,497		1,018,085
Loans held for sale, at fair value	635		464
Premises and equipment, net	13,581		17,257
Nonmarketable equity securities	1,192		1,202
Core deposit intangibles	1,489		1,643
Goodwill	8,717		8,479
Interest receivable and other assets	9,983		10,522
Total assets	$       1,487,820		$            1,350,549
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing	$          442,150		$               366,705
Interest-bearing	903,627		850,766
Total deposits	1,345,777		1,217,471
Income taxes payable	2,865		-
Interest payable and other liabilities	7,687		5,670
Total liabilities	1,356,329		1,223,141
Shareholders' equity
Common stock, $0.01 par value; 50,000,000 shares authorized; shares
issued and outstanding: 9,098,655 and 9,071,417 at	91		91
June 30, 2022 and December 31, 2021 respectively
Additional paid-in capital	95,016		94,024
Retained earnings	44,167		33,149
Accumulated other comprehensive income (loss)	(7,783)		144
Total shareholders' equity	131,491		127,408
Total liabilities and shareholders' equity	$       1,487,820		$            1,350,549

 

		Three months ended June 30,				Six months ended June 30,
		2022		2021		2022		2021
Interest Income
Loans, including fees		$        15,754		$        14,357		$        30,131		$        27,450
Interest-bearing time deposits in other banks		13		38		29		106
Debt securities, taxable		571		-		935		-
Debt securities, tax-exempt		85		-		183		-
Other interest and dividend income		249		42		319		68
Total interest income		16,672		14,437		31,597		27,624
Interest Expense
Deposits		878		772		1,595		1,647
Total interest expense		878		772		1,595		1,647
Net Interest Income		15,794		13,665		30,002		25,977
Provision for Loan Losses		219		1,300		495		2,575
Net Interest Income After Provision for Loan Losses		15,575		12,365		29,507		23,402
Noninterest Income
Secondary market income		95		78		261		92
Gain (Loss) on sales of available-for-sale debt securities (includes accumulated
other comprehensive loss reclassification of $10,000 and ($117,000) for the		10		-		(117)		-
three months ended June 30, 2022 and 2021, respectively; $10,000 and $0
for the six months ended June 30, 2022 and 2021, respectively)
Service charges on deposit accounts		219		119		468		239
Other		361		382		748		585
Total noninterest income		685		579		1,360		916
Noninterest Expense
Salaries and employee benefits		4,126		2,949		8,152		5,739
Furniture and equipment		386		231		744		433
Occupancy		571		458		1,122		930
Data and item processing		559		286		946		565
Accounting, marketing and legal fees		209		149		442		297
Regulatory assessments		226		161		422		302
Advertsing and public relations		121		71		231		105
Travel, lodging and entertainment		74		118		122		207
Other		691		452		1,202		841
Total noninterest expense		6,963		4,875		13,383		9,419
Income Before Taxes		9,297		8,069		17,484		14,899
Income tax expense		2,280		1,964		4,283		3,690
Net Income		$          7,017		$          6,105		$        13,201		$        11,209
Earnings per common share - basic		$            0.77		$            0.67		$            1.45		$            1.24
Earnings per common share - diluted		0.76		0.67		1.44		1.24
Weighted average common shares outstanding - basic		9,097,280		9,050,606		9,093,150		9,050,295
Weighted average common shares outstanding - diluted		9,194,923		9,074,408		9,187,637		9,066,797
Other Comprehensive Income (Loss)
Unrealized losses on securities, net of tax benefit of $1.5 million		$        (3,788)		$               -		$        (7,783)		$            -
Reclassification adjustment for realized gain(loss) included in net income,
net of tax of $17,000		10		-		(134)		-
Other comprehensive loss, net of tax benefit of $1.5 million		$        (3,778)		$                 -		$        (7,917)		$                 -
Comprehensive Income (Loss)		$          3,239		$          6,105		$          5,284		$        11,209

 

		Net Interest Margin
		For the Six Months Ended June 30,
		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		$        159,157		$            330		0.42 %		$        127,203		$            157		0.25 %
Investment securities, taxable		132,298		948		1.45		1,180		17		2.91
Debt securities, tax exempt		22,275		188		1.70		-		-		-
Loans held for sale		383		-		-		445		-		-
Total loans(1)		1,047,220		30,131		5.80		868,526		27,450		6.37
Total interest-earning assets		1,361,333		31,597		4.68		997,354		27,624		5.59
Noninterest-earning assets		24,506						6,090
Total assets		$     1,385,839						$     1,003,444
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$        667,159		1,012		0.31 %		$        412,070		691		0.34 %
Time deposits		176,587		583		0.67		208,903		956		0.92
Total interest-bearing deposits		843,746		1,595		0.38		620,973		1,647		0.53
Total interest-bearing liabilities		843,746		1,595		0.38		620,973		1,647		0.53
Noninterest-bearing liabilities:
Noninterest-bearing deposits		405,674						266,237
Other noninterest-bearing liabilities		6,615						5,126
Total noninterest-bearing liabilities		412,289						271,363
Shareholders' equity		129,804						111,108
Total liabilities and shareholders' equity		$     1,385,839						$     1,003,444
Net interest income				$       30,002						$       25,977
Net interest spread						4.30 %						5.05 %
Net interest margin						4.44 %						5.25 %

(1)	Nonaccrual loans are included in total loans

 

		For the Three Months Ended June 30,
		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		$        130,961		$           249		0.76 %		$        128,643		$             64		0.20 %
Debt securities, taxable-equivalent		174,583		584		1.34		1,187		16		5.41
Debt securities, tax exempt		22,244		85		1.53		-		-		-
Loans held for sale		279		-		-		557		-		-
Total loans(1)		1,090,053		15,754		5.80		889,278		14,357		6.48
Total interest-earning assets		1,418,120		16,672		4.72		1,019,665		14,437		5.68
Noninterest-earning assets		25,341						5,086
Total assets		$     1,443,461						$     1,024,751
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$        693,619		555		0.32 %		$        399,293		329		0.33 %
Time deposits		183,494		323		0.71		212,212		443		0.84
Total interest-bearing deposits		877,113		878		0.40		611,505		772		0.51
Total interest-bearing liabilities		$        877,113		878		0.40		$        611,505		772		0.51
Noninterest-bearing liabilities:
Noninterest-bearing deposits		$        429,388						$        293,867
Other noninterest-bearing liabilities		6,925						6,047
Total noninterest-bearing liabilities		436,313						299,914
Shareholders' equity		130,035						113,332
Total liabilities and shareholders' equity		$     1,443,461						$     1,024,751
Net interest income				$      15,794						$      13,665
Net interest spread						4.31 %						5.17 %
Net interest margin						4.47 %						5.38 %

(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 Wednesday, July 27, 2022 at 10:00 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/lO0ZkVNkM4w. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/lO0ZkVNkM4w 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 are the latest earnings results for BSVN?

As of June 30, 2022, Bank7 Corp. reported a net income of $7.0 million and diluted earnings per share of $0.76.

How did total assets change for Bank7 Corp. in Q2 2022?

Total assets increased by 4.7% to $1.5 billion in the quarter ending June 30, 2022.

What was the loan growth percentage reported by BSVN?

Bank7 Corp. reported an 8.5% increase in total loans, reaching $1.2 billion.

What is the provision for loan losses for BSVN in Q2 2022?

The provision for loan losses was $219,000, up from $1,300 in the previous quarter.