Bank7 Corp. Announces Q2 2023 Earnings

OKLAHOMA CITY, July 20, 2023 /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 June 30, 2023.  "In these uncertain times, it is comforting to report that our long-term and broad based deposit relationships remain as loyal customers while our debt-free and liquid balance sheet continues to be a source of strength and stability.  These strengths and our disciplined approach to risk management and cost control once-again propelled us to both record profits and EPS.  We achieved these milestones in spite of NIM pressure, which was partially due to our decision to carry more liquidity. We continue to benefit from strong asset quality and remain committed to our established fundamentals as we move through the rest of the year," said Thomas L. Travis, President and CEO of the Company. 

For the three months ended June 30, 2023 compared to the three months ended June 30, 2022:

• Net income of $9.7 million compared to $7.0 million, an increase of 38.75%
• Earnings per share of $1.05 compared to $0.76, an increase of 38.16%
• Total assets of $1.7 billion compared to $1.5 billion, an increase of 13.03%
• Total loans of $1.3 billion compared to $1.2 billion, an increase of 10.37%
• PPE of $13.9 million compared to $9.5 million, an increase of 46.35%
• Total interest income of $30.0 million compared to $16.7 million, an increase of 80.19%

Three months ended June 30, 2023 compared to three months ended March 31, 2023

• Net income of $9.7 million compared to $9.6 million, an increase of 1.45%
• Earnings per share of $1.05 compared to $1.04, an increase of 0.96%
• PPE of $13.9 million compared to $13.0 million, an increase of 6.85%
• Total interest income of $30.0 million compared to $27.4 million, an increase of 9.72%

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, 2023, the Bank's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 9.71%, 11.89%, and 13.10%, respectively.  On June 30, 2023, on a consolidated basis, the Company's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 9.71%, 11.88%, and 13.09%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

Bank7 Corp.
Consolidated Balance Sheets
Assets	June 30, 2023		December 31,
	(unaudited)		2022
Cash and due from banks	$               196,456		$               109,115
Interest-bearing time deposits in other banks	10,455		5,474
Available-for-sale debt securities	169,923		173,165
Loans, net of allowance for credit losses of $16,377 and $14,734
at June 30, 2023 and December 31, 2022, respectively	1,259,905		1,255,722
Loans held for sale, at fair value	408		-
Premises and equipment, net	14,833		13,106
Nonmarketable equity securities	1,238		1,209
Core deposit intangibles	1,184		1,336
Goodwill	8,458		8,603
Interest receivable and other assets	18,445		16,439
Total assets	$            1,681,305		$            1,584,169
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing	$               397,588		$               439,409
Interest-bearing	1,110,637		989,891
Total deposits	1,508,225		1,429,300
Income taxes payable	363		1,054
Interest payable and other liabilities	10,937		9,715
Total liabilities	1,519,525		1,440,069
Shareholders' equity
Common stock, $0.01 par value; 50,000,000 shares authorized; shares
issued and outstanding: 9,154,934 and 9,131,973 at	92		91
June 30, 2023 and December 31, 2022 respectively
Additional paid-in capital	96,498		95,263
Retained earnings	73,901		58,049
Accumulated other comprehensive income (loss)	(8,711)		(9,303)
Total shareholders' equity	161,780		144,100
Total liabilities and shareholders' equity	$            1,681,305		$            1,584,169

 

		Unaudited as of
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2023		2022		2023		2022
Interest Income
Loans, including fees		$          26,885		$        15,754		$         52,237		$        30,131
Interest-bearing time deposits in other banks		62		13		111		29
Debt securities, taxable		701		571		1,407		935
Debt securities, tax-exempt		85		85		172		183
Other interest and dividend income		2,309		249		3,495		319
Total interest income		30,042		16,672		57,422		31,597
Interest Expense
Deposits		9,544		878		16,918		1,595
Total interest expense		9,544		878		16,918		1,595
Net Interest Income		20,498		15,794		40,504		30,002
Provision for Credit Losses		1,011		219		1,485		495
Net Interest Income After Provision for Credit Losses		19,487		15,575		39,019		29,507
Noninterest Income
Secondary market income		112		95		166		261
Gain (Loss) on sales, prepayments, and calls of available-for-sale debt securities		(7)		10		(8)		(117)
Service charges on deposit accounts		199		219		434		468
Other		490		368		874		755
Total noninterest income		794		692		1,466		1,367
Noninterest Expense
Salaries and employee benefits		4,709		4,126		9,389		8,152
Furniture and equipment		251		386		500		744
Occupancy		599		571		1,318		1,122
Data and item processing		469		559		856		946
Accounting, marketing and legal fees		179		209		478		442
Regulatory assessments		339		226		734		422
Advertsing and public relations		52		121		200		231
Travel, lodging and entertainment		110		74		171		122
Other		669		691		1,381		1,202
Total noninterest expense		7,377		6,963		15,027		13,383
Income Before Taxes		12,904		9,304		25,458		17,491
Income tax expense		3,158		2,280		6,105		4,283
Net Income		$            9,746		$          7,024		$         19,353		$        13,208
Earnings per common share - basic		$              1.06		$            0.77		$             2.12		$            1.45
Earnings per common share - diluted		1.05		0.76		2.09		1.44
Weighted average common shares outstanding - basic		9,153,077		9,097,280		9,150,022		9,093,150
Weighted average common shares outstanding - diluted		9,247,101		9,194,923		9,256,450		9,187,637
Other Comprehensive Income (Loss)
Unrealized gains(losses) on securities, net of tax benefit of $0 and $1.5 million
for the three months ended June 30, 2023 and 2022, respectively; $0 and
$0 for the six months ended June 30, 2023 and 2022, respectively		$          (1,169)		$        (3,778)		$              586		$        (8,017)
Reclassification adjustment for realized (gain)loss included in net income
net of tax of $2 and $0 for the three months ended June 30, 2023 and
2022, respectively; $2 and $17 for the six months ended
June 30, 2023 and 2022, respectively		5		(10)		6		90
Other comprehensive income(loss)		$          (1,164)		$        (3,788)		$              592		$        (7,927)
Comprehensive Income		$            8,582		$          3,236		$         19,945		$          5,281

 

		Net Interest Margin
		For the Six Months Ended June 30,
		2023 (unaudited)						2022
		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		$        154,896		$         3,606		4.69 %		$        159,157		$            348		0.44 %
Investment securities, taxable		153,478		1,407		1.85		132,086		935		1.43
Debt securities, tax exempt		20,030		172		1.73		22,487		183		1.64
Loans held for sale		56		-		-		383		-		-
Total loans(1)		1,277,245		52,237		8.25		1,047,220		30,131		5.80
Total interest-earning assets		1,605,705		57,422		7.21		1,361,333		31,597		4.68
Noninterest-earning assets		24,299						24,506
Total assets		$     1,630,004						$     1,385,839
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$        810,736		12,612		3.14 %		$        667,159		1,012		0.31 %
Time deposits		239,720		4,306		3.62		176,587		583		0.67
Total interest-bearing deposits		1,050,456		16,918		3.25		843,746		1,595		0.38
Total interest-bearing liabilities		1,050,456		16,918		3.25		843,746		1,595		0.38
Noninterest-bearing liabilities:
Noninterest-bearing deposits		414,383						405,674
Other noninterest-bearing liabilities		11,659						6,615
Total noninterest-bearing liabilities		426,042						412,289
Shareholders' equity		153,506						129,804
Total liabilities and shareholders' equity		$     1,630,004						$     1,385,839
Net interest income				$       40,504						$       30,002
Net interest spread						3.96 %						4.30 %
Net interest margin						5.09 %						4.44 %

(1)           Nonaccrual loans are included in total loans

 

		For the Three Months Ended June 30,
		2023 (unaudited)						2022
		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		$        174,920		$        2,371		5.44 %		$        130,961		$           262		0.81 %
Debt securities, taxable-equivalent		153,424		701		1.83		174,583		571		1.31
Debt securities, tax exempt		19,744		85		1.73		22,244		85		1.53
Loans held for sale		68		-		-		279		-		-
Total loans(1)		1,283,341		26,885		8.40		1,090,053		15,754		5.80
Total interest-earning assets		1,631,497		30,042		7.39		1,418,120		16,672		4.72
Noninterest-earning assets		25,050						25,341
Total assets		$     1,656,547						$     1,443,461
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$        817,819		6,860		3.36 %		$        693,619		555		0.32 %
Time deposits		265,396		2,684		4.06		183,494		323		0.71
Total interest-bearing deposits		1,083,215		9,544		3.53		877,113		878		0.40
Total interest-bearing liabilities		$     1,083,215		9,544		3.53		$        877,113		878		0.40
Noninterest-bearing liabilities:
Noninterest-bearing deposits		$        403,207						$        429,388
Other noninterest-bearing liabilities		12,180						6,925
Total noninterest-bearing liabilities		415,387						436,313
Shareholders' equity		157,945						130,035
Total liabilities and shareholders' equity		$     1,656,547						$     1,443,461
Net interest income				$      20,498						$      15,794
Net interest spread						3.85 %						4.32 %
Net interest margin						5.04 %						4.47 %

(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 second quarter results, which will be broadcast live over the Internet, on Thursday, July 20, 2023 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/pODMrqAr9XJ. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/pODMrqAr9XJ 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.