Bank7 Corp. Announces Q3 2023 Earnings

Rhea-AI Summary

Bank7 Corp. reports unaudited results for Q3 2023, with net income of $7.9 million and total assets of $1.8 billion. Nine-month net income increased by 28.03% to $27.2 million. The Bank remains well-capitalized with Tier 1 leverage ratio of 9.75%.

Positive

• Bank7 Corp. reports record PPE and interest income for Q3 2023. Net income increased by 28.03% for the nine months ended September 30, 2023. Total assets and loans also saw significant increases.

Negative

• None

OKLAHOMA CITY, Oct. 26, 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 September 30, 2023.  "We are pleased to report another quarter of record PPE and record interest income.  Our success continues to be driven by our long-term and broad-based deposit relationships, our debt-free and liquid balance sheet, and our disciplined approach to cost controls.  With the exception of one large credit, we continue to benefit from strong asset quality and remain confident that the overall portfolio is indicative of our historical low loan loss results," said Thomas L. Travis, President and CEO of the Company. 

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

• Net Income of $7.9 million compared to $8.0 million, a decrease of 2.3%
• Earnings per share of $0.85 compared to $0.87, a decrease of 2.7%
• Total assets of $1.8 billion compared to $1.6 billion, an increase of 12.11%
• Total loans of $1.4 billion compared to $1.2 billion, an increase of 12.94%
• PPE of $14.4 million compared to $12.8 million, an increase of 12.62%
• Total interest income of $31.7 million compared to $21.7 million, an increase of 46.24%

Nine months ended September 30, 2023 compared to nine months ended September 30, 2022

• Net Income of $27.2 million compared to $21.2 million, an increase of 28.03%
• Earnings per share of $2.94 compared to $2.31, an increase of 27.11%
• Total assets of $1.8 billion compared to $1.6 billion, an increase of 12.11%
• Total loans of $1.4 billion compared to $1.2 billion, an increase of 12.94%
• PPE of $41.3 million compared to $30.9 million, an increase of 33.88%
• Total interest income of $89.1 million compared to $53.3 million, an increase of 67.29%

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, 2023, the Bank's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 9.75%, 11.39%, and 12.64%, respectively.  On September 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 9.76%, 11.39%, and 12.64%, 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	September 30, 2023 (unaudited)		December 31, 2022
Cash and due from banks	$             169,490		$             109,115
Interest-bearing time deposits in other banks	17,182		5,474
Available-for-sale debt securities	167,138		173,165
Loans, net of allowance for credit losses of $20,649 and $14,734
at September 30, 2023 and December 31, 2022, respectively	1,372,128		1,255,722
Loans held for sale, at fair value	1,143		-
Premises and equipment, net	14,963		13,106
Nonmarketable equity securities	1,251		1,209
Core deposit intangibles	1,107		1,336
Goodwill	8,458		8,603
Interest receivable and other assets	19,539		16,439
Total assets	$          1,772,399		$          1,584,169
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing	$             480,827		$             439,409
Interest-bearing	1,112,745		989,891
Total deposits	1,593,572		1,429,300
Income taxes payable	419		1,054
Interest payable and other liabilities	10,501		9,715
Total liabilities	1,604,492		1,440,069
Shareholders' equity
Common stock, $0.01 par value; 50,000,000 shares authorized; shares
issued and outstanding: 9,184,975 and 9,131,973 at	92		91
September 30, 2023 and December 31, 2022 respectively
Additional paid-in capital	97,068		95,263
Retained earnings	79,825		58,049
Accumulated other comprehensive income (loss)	(9,078)		(9,303)
Total shareholders' equity	167,907		144,100
Total liabilities and shareholders' equity	$          1,772,399		$          1,584,169

 

		Unaudited as of
		Three Months Ended September 30,				Nine Months Ended September 30,
		2023		2022		2023		2022
Interest Income
Loans, including fees		$         28,880		$      20,466		$        81,117		$      50,597
Interest-bearing time deposits in other banks		159		10		270		39
Debt securities, taxable		699		690		2,106		1,625
Debt securities, tax-exempt		81		90		253		273
Other interest and dividend income		1,903		435		5,398		754
Total interest income		31,722		21,691		89,144		53,288
Interest Expense
Deposits		10,976		2,646		27,894		4,241
Total interest expense		10,976		2,646		27,894		4,241
Net Interest Income		20,746		19,045		61,250		49,047
Provision for Credit Losses		4,159		2,348		5,645		2,843
Net Interest Income After Provision for Credit Losses		16,587		16,697		55,605		46,204
Noninterest Income
Secondary market income		6		134		172		395
Total noninterest income		(7)		(10)		(15)		(127)
Service charges on deposit accounts		213		210		647		678
Other		795		506		1,668		1,261
Total noninterest income		1,007		840		2,472		2,207
Noninterest Expense
Salaries and employee benefits		4,910		3,996		14,299		12,148
Furniture and equipment		254		390		755		1,134
Occupancy		662		614		1,980		1,736
Data and item processing		424		522		1,280		1,468
Accounting, marketing and legal fees		14		340		491		782
Regulatory assessments		279		551		1,013		973
Advertsing and public relations		74		83		273		314
Travel, lodging and entertainment		85		94		255		216
Other		688		543		2,068		1,745
Total noninterest expense		7,390		7,133		22,414		20,516
Income Before Taxes		10,204		10,404		35,663		27,895
Income tax expense		2,351		2,363		8,457		6,646
Net Income		$           7,853		$        8,041		$        27,206		$      21,249
Earnings per common share - basic		$             0.86		$          0.88		$            2.97		$          2.34
Earnings per common share - diluted		0.85		0.87		2.94		2.31
Weighted average common shares outstanding - basic		9,158,027		9,100,789		9,152,788		9,095,724
Weighted average common shares outstanding - diluted		9,273,595		9,209,754		9,262,003		9,194,928
Other Comprehensive Income (Loss)
Unrealized gains(losses) on securities, net of (tax)tax benefit of $485 and $1.7 million
for the three months ended September 30, 2023 and 2022, respectively; ($69) and
$3.2 million for the nine months ended September 30, 2023 and 2022, respectively		$            (372)		$       (2,674)		$             214		$     (10,691)
Reclassification adjustment for realized loss included in net income
net of tax of $2 and $2 for the three months ended September 30, 2023 and
2022, respectively; $4 and $29 for the nine months ended
September 30, 2023 and 2022, respectively		5		8		11		98
Other comprehensive income(loss)		$            (367)		$       (2,666)		$             225		$     (10,593)
Comprehensive Income		$           7,486		$        5,375		$        27,431		$      10,656

 

		Net Interest Margin
		For the Nine Months Ended September 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		$       162,432		$        5,668		4.67 %		$       139,133		$           793		0.76 %
Debt securities, taxable-equivalent		152,702		2,106		1.84		142,913		1,625		1.52
Debt securities, tax exempt		19,828		253		1.71		22,087		273		1.65
Loans held for sale		115		-		-		686		-		-
Total loans(1)		1,299,754		81,117		8.34		1,103,114		50,597		6.13
Total interest-earning assets		1,634,831		89,144		7.29		1,407,933		53,288		5.06
Noninterest-earning assets		22,560						24,069
Total assets		$    1,657,391						$    1,432,002
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$       823,331		20,346		3.35 %		$       699,670		3,351		0.64 %
Time deposits		292,235		7,548		3.92		168,608		890		0.71
Total interest-bearing deposits		1,115,566		27,894		3.48		868,278		4,241		0.65
Total interest-bearing liabilities		1,115,566		27,894		3.48		868,278		4,241		0.65
Noninterest-bearing liabilities:
Noninterest-bearing deposits		422,691						424,720
Other noninterest-bearing liabilities		11,649						7,128
Total noninterest-bearing liabilities		434,340						431,848
Shareholders' equity		107,485						131,876
Total liabilities and shareholders' equity		$    1,657,391						$    1,432,002
Net interest income				$      61,250						$      49,047
Net interest spread						3.81 %						4.41 %
Net interest margin						5.01 %						4.66 %
(1)           Nonaccrual loans are included in total loans

 

		Net Interest Margin
		For the Three Months Ended September 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		$       176,589		$       2,062		4.63 %		$         99,751		$          445		1.77 %
Debt securities, taxable-equivalent		151,174		699		1.83		163,699		690		1.67
Debt securities, tax exempt		19,430		81		1.65		21,811		90		1.64
Loans held for sale		232		-		-		1,281		-		-
Total loans(1)		1,344,038		28,880		8.52		1,213,080		20,466		6.69
Total interest-earning assets		1,691,463		31,722		7.44		1,499,622		21,691		5.74
Noninterest-earning assets		23,407						23,197
Total assets		$    1,714,870						$    1,522,819
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$       823,331		7,733		3.73 %		$       761,927		2,338		1.22 %
Time deposits		292,235		3,243		4.40		152,910		308		0.80
Total interest-bearing deposits		1,115,566		10,976		3.90		914,837		2,646		1.15
Total interest-bearing liabilities		$    1,115,566		10,976		3.90		$       914,837		2,646		1.15
Noninterest-bearing liabilities:
Noninterest-bearing deposits		$       422,691						$       463,882
Other noninterest-bearing liabilities		11,649						8,132
Total noninterest-bearing liabilities		434,340						472,014
Shareholders' equity		164,964						135,968
Total liabilities and shareholders' equity		$    1,714,870						$    1,522,819
Net interest income				$     20,746						$     19,045
Net interest spread						3.54 %						4.60 %
Net interest margin						4.87 %						5.04 %
(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 third quarter results, which will be broadcast live over the Internet, on Thursday, October 26, 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/o0Oqylxyz5k. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/o0Oqylxyz5k 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 is Bank7 Corp.'s net income for Q3 2023?

Bank7 Corp. reported a net income of $7.9 million for Q3 2023.

What is the increase in net income for the nine months ended September 30, 2023?

Net income increased by 28.03% to $27.2 million for the nine months ended September 30, 2023.

What is Bank7 Corp.'s Tier 1 leverage ratio?

Bank7 Corp.'s Tier 1 leverage ratio is 9.75%.