Bank7 Corp. Announces Q3 2021 Earnings

Rhea-AI Summary

Bank7 Corp. (NASDAQ: BSVN) reported record third-quarter results for 2021, with net income reaching $6.3 million, a 41.1% increase from the previous year. Pre-tax, pre-provision earnings rose 23.5% to $9.1 million. Total assets increased to $1.1 billion, up 17.8%, while total deposits grew 17.9% to $1.0 billion. The tangible book value per share increased by 19.0% to $13.34. The company's capital ratios remain well above regulatory requirements, reflecting robust financial health. Earnings per share for the quarter were $0.69, up 43.8% from $0.48.

Positive

• Net income increased by 41.1% to $6.3 million.
• Total assets rose by 17.8% to $1.1 billion.
• Total deposits grew by 17.9% to $1.0 billion.
• Earnings per share reached $0.69, a 43.8% increase.
• Tangible book value per share increased by 19.0% to $13.34.

Negative

• None.

OKLAHOMA CITY, Oct. 21, 2021 /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 September 30, 2021.  "Our company continues to perform at a very high level, we are pleased to report another record quarter of net income for BSVN.  While we are proud of our earnings, capital, and liquidity strength, we also pause to acknowledge the 3-year anniversary of our IPO, and how we had confidence in our team to perform at a high level and we've exceeded those expectations." said Thomas L. Travis, President and CEO of the Company. 

Three months ended September 30, 2021 compared to three months ended September 30, 2020:

• Pre-tax, pre-provision earnings of $9.1 million compared to $7.4 million, an increase of 23.5%
• Net income of $6.3 million compared to $4.4 million, an increase of 41.1%
• Total assets of $1.1 billion compared to $973.4 million, an increase of 17.8%
• Total deposits of $1.0 billion compared to $863.7 million, an increase of 17.9%
• Tangible book value per share of $13.34 compared to $11.21, an increase of 19.0%
• Average cost of funds of 0.33% compared to 0.57%, a decrease of 42.1%
• Earnings per share of $0.69 compared to $0.48, an increase of 43.8%
• ROAA of 2.36% compared to 1.83%, an increase of 28.9%
• ROATCE of 21.12% compared to 17.44%, an increase of 21.1%

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 September 30, 2021, the Bank's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.51%, 13.76%, and 14.82%, respectively.  On September 30, 2021, on a consolidated basis, the Company's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.50%, 13.74%, and 14.80%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

Pre-tax, pre-provision earnings is defined as income before taxes and provision for loan losses.  We believe the most directly comparable GAAP financial measure is income before taxes.  Disclosure of this measure enables you to compare our operations to those of other banking companies before consideration of taxes and provision expense.  We calculate our tax-adjusted net income, return on average assets, and return on average equity, and per share amounts by using a combined effective tax rate for federal and state income taxes of 24.8% and 27.2% in the third quarter of 2021 and 2020, respectively.  We acknowledge that our non-GAAP financial measures have a number of limitations.  As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other banking companies use.  Other banking companies may use names similar to those we use for non-GAAP financial measures we disclose, but may calculate them differently.  You should understand how we and other companies each calculate their non-GAAP financial measures when making comparisons.  The following reconciliation table provides a more detailed analysis of these non-GAAP financial measures:

		Three months ended  September 30,				Nine months ended September 30,
(Dollars in thousands, except per share data)		2021		2020		2021		2020
Loan interest income (excluding loan fees)
Total loan interest income, including loan fee income		$           13,927		$            12,777		$           41,377		$           39,268
Loan fee income		(1,636)		(1,078)		(6,154)		(3,969)
Loan interest income excluding loan fee income		$           12,291		$            11,699		$           35,223		$           35,299
Average total loans		$         924,391		$          847,076		$         887,353		$         807,134
Yield on loans (including loan fee income)		5.98		6.00		6.23		6.50
Yield on loans (excluding loan fee income)		5.28		5.49		5.31		5.84
Pre-tax, pre-provision net earnings
Net income before income taxes		$             8,327		$              6,101		$           23,226		$           19,567
Plus: Provision for loan losses		750		1,250		3,325		3,300
Pre-tax, pre-provision net earnings		$             9,077		$              7,351		$           26,551		$           22,867
Adjusted provision for income tax
Net income before income taxes		$             8,327		$              6,101		$           23,226		$           19,567
Total effective adjusted tax rate		24.8%		27.2%		24.8%		25.8%
Adjusted provision for income taxes		$             2,063		$              1,661		$             5,753		$             5,040
Tax-adjusted net income
Net income before income taxes		$             8,327		$              6,101		$           23,226		$           19,567
Adjusted provision for income taxes		2,063		1,661		5,753		5,040
Tax-adjusted net income		$             6,264		$              4,440		$           17,473		$           14,527
Tax-adjusted ratios and per share data
Tax-adjusted net income (numerator)		$             6,264		$              4,440		$           17,473		$           14,527
Average assets (denominator)		$      1,051,873		$          967,044		$      1,019,764		$         937,849
Tax-adjusted return on average assets		2.36%		1.83%		2.29%		2.07%
Average shareholders' equity (denominator)		$         119,145		$          102,929		$         113,817		$         101,377
Tax-adjusted return on average shareholders' equity		20.86%		17.16%		20.53%		19.14%
Average tangible common equity (denominator)		$         117,679		$          101,269		$         112,305		$           99,667
Tax-adjusted return on average tangible common equity		21.12%		17.44%		20.80%		19.47%
Weighted average common shares outstanding basic (denominator)		9,052,718		9,228,128		9,051,112		9,483,540
Tax-adjusted net income per common share--basic		$               0.69		$                0.48		$               1.93		$               1.53
Weighted average common shares outstanding diluted (denominator)		9,105,255		9,228,128		9,078,671		9,483,540
Tax-adjusted net income per common share--diluted		$               0.69		$                0.48		$               1.92		$               1.53
Tangible assets
Total assets		$      1,146,230		$          973,354
Less: Goodwill and intangibles		(1,446)		(1,634)
Tangible assets		$      1,144,784		$          971,720
Tangible shareholders' equity
Total shareholders' equity		$         122,409		$          105,230
Less: Goodwill and intangibles		(1,446)		(1,634)
Tangible shareholders' equity		$         120,963		$          103,596
Tangible shareholders' equity
Tangible shareholders' equity (numerator)		$         120,963		$          103,596
Tangible assets (denominator)		1,144,784		971,720
Tangible common equity to tangible assets		10.57%		10.66%
End of period common shares outstanding		9,070,038		9,241,689
Book value per share		$             13.50		$              11.39
Tangible book value per share		$             13.34		$              11.21
Total shareholders' equity to total assets		10.68%		10.81%

 

		Net Interest Margin Excluding Loan Fee Income
		For the Three Months Ended September 30,
		2021						2020
		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(1)		$      120,078		$           79		0.26%		$  111,019		$         147		0.53%
Investment securities(2)		1,187		2		0.67		1,138		2		0.70
Loans held for sale		610		-		-		425		-		-
Total loans(3)		924,391		12,291		5.28		847,076		11,699		5.49
Total interest-earning assets		1,046,266		12,372		4.69		959,658		11,848		4.91
Noninterest-earning assets		5,607						7,386
Total assets		$   1,051,873						$  967,044
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$      401,843		332		0.33%		$  381,572		545		0.57%
Time deposits		220,189		397		0.72		200,961		780		1.54
Total interest-bearing deposits		622,032		729		0.46		582,533		1,325		0.90
Total interest-bearing liabilities		622,032		729		0.46		582,533		1,325		0.90
Noninterest-bearing liabilities:
Noninterest-bearing deposits		304,063						276,219
Other noninterest-bearing liabilities		6,633						5,363
Total noninterest-bearing liabilities		310,696						281,582
Shareholders' equity		119,145						102,929
Total liabilities and shareholders' equity		$   1,051,873						$  967,044
Net interest income excluding loan fee income				$    11,643						$    10,523
Net interest spread excluding loan fee income(4)						4.23%						4.01%
Net interest margin excluding loan fee income						4.41%						4.36%

 

		Net Interest Margin Including Loan Fee Income
		For the Three Months Ended September 30,
		2021						2020
		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(1)		$      120,078		$           79		0.26%		$  111,019		$         147		0.53%
Investment securities(2)		1,187		2		0.67		1,138		2		0.70
Loans held for sale		610		-		-		425		-		-
Total loans(3)		924,391		13,927		5.98		847,076		12,777		6.00
Total interest-earning assets		1,046,266		14,008		5.31		959,658		12,926		5.36
Noninterest-earning assets		5,607						7,386
Total assets		$   1,051,873						$  967,044
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$      401,843		332		0.33%		$  381,572		545		0.57%
Time deposits		220,189		397		0.72		200,961		780		1.54
Total interest-bearing deposits		622,032		729		0.46		582,533		1,325		0.90
Total interest-bearing liabilities		622,032		729		0.46		582,533		1,325		0.90
Noninterest-bearing liabilities:
Noninterest-bearing deposits		$      304,063						276,219
Other noninterest-bearing liabilities		6,633						5,363
Total noninterest-bearing liabilities		310,696						281,582
Shareholders' equity		119,145						102,929
Total liabilities and shareholders' equity		$   1,051,873						$  967,044
Net interest income including loan fee income				$    13,279						$    11,601
Net interest spread including loan fee income(4)						4.85%						4.45%
Net interest margin including loan fee income						5.04%						4.81%

(1)	Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.
(2)	Includes income and average balances for FHLB and FRB stock.
(3)	Non-accrual loans are included in loans.
(4)	Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.

 

		Net Interest Margin Excluding Loan Fee Income
		For the Nine Months Ended September 30,
		2021						2020
		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(1)		$      124,801		$         236		0.25%		$  120,909		$         701		0.77%
Investment securities(2)		1,182		19		2.15		1,109		21		2.53
Loans held for sale		501		-		-		258		-		-
Total loans(3)		887,353		35,223		5.31		807,134		35,299		5.84
Total interest-earning assets		1,013,837		35,478		4.68		929,410		36,021		5.18
Noninterest-earning assets		5,927						8,439
Total assets		$   1,019,764						$  937,849
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$      410,299		1,024		0.33%		$  366,162		2,259		0.82%
Time deposits		212,706		1,352		0.85		208,650		2,769		1.77
Total interest-bearing deposits		623,005		2,376		0.51		574,812		5,028		1.17
Total interest-bearing liabilities		623,005		2,376		0.51		574,812		5,028		1.17
Noninterest-bearing liabilities:
Noninterest-bearing deposits		277,308						256,429
Other noninterest-bearing liabilities		5,634						5,231
Total noninterest-bearing liabilities		282,942						261,660
Shareholders' equity		113,817						101,377
Total liabilities and shareholders' equity		$   1,019,764						$  937,849
Net interest income excluding loan fee income				$    33,102						$    30,993
Net interest spread excluding loan fee income(4)						4.17%						4.01%
Net interest margin excluding loan fee income						4.37%						4.45%

 

		Net Interest Margin With Loan Fee Income
		For the Nine Months Ended September 30,
		2021						2020
		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(1)		$      124,801		$         236		0.25%		$  120,909		$         701		0.77%
Investment securities(2)		1,182		19		2.15		1,109		21		2.53
Loans held for sale		501		-		-		258		-		-
Total loans(3)		887,353		41,377		6.23		807,134		39,268		6.50
Total interest-earning assets		1,013,837		41,632		5.49		929,410		39,990		5.75
Noninterest-earning assets		5,927						8,439
Total assets		$   1,019,764						$  937,849
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$      410,299		1,024		0.33%		$  366,162		2,259		0.82%
Time deposits		212,706		1,352		0.85		208,650		2,769		1.77
Total interest-bearing deposits		623,005		2,376		0.51		574,812		5,028		1.17
Total interest-bearing liabilities		623,005		2,376		0.51		574,812		5,028		1.17
Noninterest-bearing liabilities:
Noninterest-bearing deposits		277,308						256,429
Other noninterest-bearing liabilities		5,634						5,231
Total noninterest-bearing liabilities		282,942						261,660
Shareholders' equity		113,817						101,377
Total liabilities and shareholders' equity		$   1,019,764						$  937,849
Net interest income including loan fee income				$    39,256						$    34,962
Net interest spread including loan fee income(4)						4.98%						4.58%
Net interest margin including loan fee income						5.18%						5.02%

(1)	Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.
(2)	Includes income and average balances for FHLB and FRB stock.
(3)	Non-accrual loans are included in loans.
(4)	Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.

 

Bank7 Corp.
Consolidated Balance Sheets
Dollars in thousands	Unaudited as of
Assets	September 30,		December 31,
	2021		2020
Cash and due from banks	$                205,762		$             153,901
Interest-bearing time deposits in other banks	5,229		16,412
Loans, net	915,393		826,974
Loans held for sale	1,002		324
Premises and equipment, net	8,775		9,151
Nonmarketable equity securities	1,193		1,172
Goodwill and intangibles	1,446		1,583
Interest receivable and other assets	7,430		7,152
Total assets	$             1,146,230		$          1,016,669
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing	$                335,316		$             246,569
Interest-bearing	683,058		658,945
Total deposits	1,018,374		905,514
Interest payable and other liabilities	5,447		3,827
Total liabilities	1,023,821		909,350
Common stock	91		90
Additional paid-in capital	93,766		93,162
Retained earnings	28,552		14,067
Total shareholders' equity	122,409		107,319
Total liabilities and shareholders' equity	$             1,146,230		$          1,016,669

 

Bank7 Corp.
Consolidated Statements of Income
		Unaudited as of
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
Dollars in thousands, except per share data		2021		2020		2021		2020
Interest Income
Loans, including fees		$                13,927		$                12,777		$                41,377		$                39,268
Interest-bearing time deposits in other banks		35		123		141		419
Interest-bearing deposits in other banks		46		26		114		303
Total interest income		14,008		12,926		41,632		39,990
Interest Expense
Deposits		729		1,325		2,376		5,028
Total interest expense		729		1,325		2,376		5,028
Net Interest Income		13,279		11,601		39,256		34,962
Provision for Loan Losses		750		1,250		3,325		3,300
Net Interest Income After Provision for Loan Losses		12,529		10,351		35,931		31,662
Noninterest Income
Secondary market income		161		57		253		134
Service charges on deposit accounts		141		104		380		318
Other		275		173		860		513
Total noninterest income		577		334		1,493		965
Noninterest Expense
Salaries and employee benefits		2,946		2,505		8,685		7,576
Furniture and equipment		218		224		651		658
Occupancy		461		543		1,391		1,417
Data and item processing		292		276		857		821
Accounting, marketing and legal fees		150		135		447		338
Regulatory assessments		162		164		464		281
Advertising and public relations		76		62		181		360
Travel, lodging and entertainment		102		50		309		146
Other		372		625		1,213		1,463
Total noninterest expense		4,779		4,584		14,198		13,060
Income Before Taxes		8,327		6,101		23,226		19,567
Income tax expense		2,063		1,661		5,753		5,040
Net Income		$                  6,264		$                  4,440		$                17,473		$                14,527
Earnings per common share - basic		$                    0.69		$                    0.48		$                    1.93		$                    1.53
Diluted earnings per common share		0.69		0.48		1.92		1.53
Weighted average common shares outstanding - basic		9,052,718		9,228,128		9,051,112		9,483,540
Weighted average common shares outstanding - diluted		9,105,255		9,228,128		9,078,671		9,483,540

 

About Bank7 Corp.

We are Bank7 Corp., a bank holding company headquartered in Oklahoma City, Oklahoma. Through our wholly-owned subsidiary, Bank7, we operate nine 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 Thursday, October 21, 2021 at 4:30 p.m. Eastern Time. To participate in the call, dial 1-888-348-6421, or access it live over the Internet at https://www.webcaster4.com/Webcast/Page/2179/43192 For those not able to participate in the live call, an archive of the webcast will be available at https://www.webcaster4.com/Webcast/Page/2179/43192 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.

About Non-GAAP Financial Measures

This communication includes certain non-GAAP financial measures, including tax-adjusted net income, tax-adjusted earnings per share, tax-adjusted return on average assets and tax-adjusted return on average shareholders' equity. These non-GAAP financial measures and any other non-GAAP financial measures that we discuss in this presentation should not be considered in isolation, and should be considered as additions to, and not substitutes for or superior to, measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Bank7 Corp.'s non-GAAP financial measures as tools for comparison. See the table above in this communication for a reconciliation of the non-GAAP financial measures used in (or conveyed orally during) this communication to their most directly comparable GAAP financial measures.

Contact:

Thomas Travis
President & CEO
(405) 810-8600

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SOURCE Bank7 Corp.

FAQ

What were Bank7 Corp's earnings per share for Q3 2021?

Bank7 Corp's earnings per share for Q3 2021 were $0.69.

How much did Bank7 Corp's net income increase in Q3 2021?

Bank7 Corp's net income increased by 41.1% to $6.3 million in Q3 2021.

What are the total assets of Bank7 Corp as of September 30, 2021?

As of September 30, 2021, Bank7 Corp's total assets were $1.1 billion.

What percentage increase did Bank7 Corp experience in total deposits for Q3 2021?

Bank7 Corp experienced a 17.9% increase in total deposits for Q3 2021.

What was the tangible book value per share for Bank7 Corp in Q3 2021?

The tangible book value per share for Bank7 Corp in Q3 2021 was $13.34.