Bank7 Corp. Announces Q4 2024 and Full Year Earnings

Rhea-AI Summary

Bank7 Corp. (NASDAQ: BSVN) reported strong financial results for Q4 and full-year 2024, achieving record annual performance. The company's net income surged 61.62% to $45.7 million from $28.3 million in 2023, while earnings per share increased 58.69% to $4.84 from $3.05.

Key financial metrics include total assets of $1.7 billion (down 1.80%), total loans of $1.4 billion (up 2.69%), and total interest income of $131.5 million (up 8.22%). The bank maintains strong capital levels, with Tier 1 leverage ratio at 12.18%, Tier 1 risk-based capital ratio at 13.99%, and total risk-based capital ratio at 15.22%, all significantly above the 'well-capitalized' regulatory requirements.

Positive

• Net income increased 61.62% to $45.7 million
• Earnings per share grew 58.69% to $4.84
• Total loans increased 2.69% to $1.4 billion
• Interest income rose 8.22% to $131.5 million
• Strong capital ratios well above regulatory requirements

Negative

• Total assets decreased 1.80% to $1.7 billion
• Noninterest-bearing deposits declined from $482.3M to $313.3M

Insights

Financial Analyst

Bank7 Corp's Q4 2024 results showcase remarkable financial performance with net income surging 61.62% to $45.7 million for the full year 2024, compared to $28.3 million in 2023. The earnings per share jumped 58.69% to $4.84. The bank's efficiency in managing its balance sheet is evident through several key metrics:

The net interest margin expanded to 5.11% for 2024, up from 4.97% in 2023, demonstrating strong pricing power and asset-liability management. Asset quality remains robust with no provision for credit losses needed in 2024, compared to $21.1 million in 2023, indicating a healthy loan portfolio. The bank maintains strong capital ratios well above regulatory requirements, with a Tier 1 leverage ratio of 12.19% and total risk-based capital ratio of 15.21%.

Notable shifts in the balance sheet include a reduction in noninterest-bearing deposits from $482.3 million to $313.3 million, offset by growth in interest-bearing deposits. This transition, while increasing funding costs, has been well-managed as evidenced by the improved net interest margin.

Banking Risk Analyst

The risk profile of Bank7 has notably improved in 2024. The elimination of provision for credit losses suggests strong underlying asset quality and robust underwriting standards. The loan portfolio grew moderately by 2.69% while maintaining quality, with the allowance for credit losses decreasing from $19.7 million to $17.9 million.

The bank's liquidity position remains solid with $234.2 million in cash and due from banks, though the available-for-sale securities portfolio has been significantly reduced from $169.5 million to $59.9 million. This reduction in securities, combined with the shift in deposit mix, indicates a strategic response to interest rate risks. The bank's capital ratios demonstrate substantial loss-absorption capacity, providing a strong buffer against potential market stress.

OKLAHOMA CITY, Jan. 16, 2025 /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 December 31, 2024.  "We are pleased to announce record annual results for 2024, as we reached new milestones in net income, PPE, and earnings per share.  Our properly matched balance sheet, disciplined cost controls, and excellent credit quality continues to produce outstanding performance," said Thomas L. Travis, President and CEO of the Company. 

For the year ended December 31, 2024 compared to the year ended December 31, 2023:

• Net income of $45.7 million compared to $28.3 million, an increase of 61.62%
• Earnings per share of $4.84 compared to $3.05, an increase of 58.69%
• Total assets of $1.7 billion compared to $1.8 billion, a decrease of 1.80%
• Total loans of $1.4 billion compared to $1.4 billion, an increase of 2.69%
• PPE of $60.4 million compared to $58.4 million, an increase of 3.38%
• Total interest income of $131.5 million compared to $121.5 million, an increase of 8.22%

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 December 31, 2024, the Bank's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 12.18%, 13.99%, and 15.22%, respectively.  On December 31, 2024, on a consolidated basis, the Company's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 12.19%, 13.98%, and 15.21%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators. 

Non-GAAP Financial Measures:
This earnings release contains the non-GAAP financial measure pre-provision pre-tax earnings ("PPE").  The Company's management uses this non-GAAP measure in their analysis of the Company's performance.  This measure adjusts GAAP performance to exclude from net income, income tax expense, provision for credit losses, and loss on sales and calls of available-for-sale debt securities.

					For the Year Ended
					2024		2023
Calculation of Pre-Provision Pre-Tax Earnings ("PPE")					(Dollars in thousands)
Net Income					$          45,698		$           28,275
Income Tax Expense					14,656		8,948
Pre-tax net income					60,354		37,223
Add back: Provision for credit losses					-		21,145
Add back: (Gain)Loss on sales/calls of AFS debt securities					6		16
Pre-provision pre-tax earnings					60,360		58,384

 

Bank7 Corp.
Consolidated Balance Sheets
	December 31,
Assets	2024 (unaudited)		2023
Cash and due from banks	$        234,196		$        181,042
Interest-bearing time deposits in other banks	6,719		17,679
Available-for-sale debt securities	59,941		169,487
Loans, net of allowance for credit losses of $17,918 and
$19,691 at December 31, 2024 and December 31, 2023, respectively	1,379,465		1,341,148
Loans held for sale, at fair value	-		718
Premises and equipment, net	18,137		14,942
Nonmarketable equity securities	1,283		1,283
Core deposit intangibles	878		1,031
Goodwill	8,458		8,458
Interest receivable and other assets	30,731		35,878
Total assets	$     1,739,808		$     1,771,666
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing	$        313,258		$        482,349
Interest-bearing	1,202,213		1,109,042
Total deposits	1,515,471		1,591,391
Income taxes payable	77		302
Interest payable and other liabilities	11,047		9,647
Total liabilities	1,526,595		1,601,340
Shareholders' equity
Common stock, $0.01 par value; 50,000,000 shares authorized; shares
issued and outstanding: 9,390,211 and 9,197,696 at December 31, 2024
and December 31, 2023, respectively	94		92
Additional paid-in capital	101,809		97,417
Retained earnings	116,281		78,962
Accumulated other comprehensive loss	(4,971)		(6,145)
Total shareholders' equity	213,213		170,326
Total liabilities and shareholders' equity	$     1,739,808		$     1,771,666

 

		Three Months Ended				Twelve Months Ended
		December 31,				December 31,
		2024 (unaudited)		2023 (unaudited)		2024 (unaudited)		2023
Interest Income
Loans, including fees		$          29,582		$          28,727		$        119,416		$      109,843
Interest-bearing time deposits in other banks		110		248		785		519
Debt securities, taxable		265		685		2,531		2,791
Debt securities, tax-exempt		60		77		273		330
Other interest and dividend income		2,313		2,664		8,535		8,061
Total interest income		32,330		32,401		131,540		121,544
Interest Expense
Deposits		10,593		11,104		45,345		38,998
Total interest expense		10,593		11,104		45,345		38,998
Net Interest Income		21,737		21,297		86,195		82,546
Provision for Credit Losses		-		15,500		-		21,145
Net Interest Income After Provision for Credit Losses		21,737		5,797		86,195		61,401
Noninterest Income
Mortgage lending income		137		159		370		331
Loss on sales, prepayments, and calls of available-for-sale debt securities		(3)		(1)		(6)		(16)
Service charges on deposit accounts		233		222		975		869
Other		2,034		6,389		9,915		8,058
Total noninterest income		2,401		6,769		11,254		9,242
Noninterest Expense
Salaries and employee benefits		5,043		3,086		20,783		17,385
Furniture and equipment		257		241		1,070		995
Occupancy		655		708		2,640		2,689
Data and item processing		459		450		1,897		1,730
Accounting, marketing and legal fees		255		51		836		543
Regulatory assessments		211		524		1,196		1,537
Advertising and public relations		192		154		549		427
Travel, lodging and entertainment		161		118		431		374
Other		2,185		5,673		7,693		7,740
Total noninterest expense		9,418		11,005		37,095		33,420
Income Before Taxes		14,720		1,561		60,354		37,223
Income tax expense		3,611		491		14,656		8,948
Net Income		$          11,109		$            1,070		$          45,698		$        28,275
Earnings per common share - basic		$              1.19		$              0.12		$              4.92		$            3.09
Earnings per common share - diluted		1.16		0.12		4.84		3.05
Weighted average common shares outstanding - basic		9,366,074		9,188,888		9,290,051		9,161,565
Weighted average common shares outstanding - diluted		9,556,388		9,274,960		9,447,751		9,264,307
Other comprehensive income (loss)
Unrealized gains (losses) on securities, net of tax expense (benefit) of $335 and ($1 million)
for the years ended December 31, 2024 and 2023, respectively		$             (856)		$            2,932		$            1,169		$          3,146
Reclassification adjustment for realized losses included in net income net of tax of $1 and $4
for the years ended December 31, 2024 and 2023, respectively		2		1		5		12
Other comprehensive income (loss)		$             (854)		$            2,933		$            1,174		$          3,158
Comprehensive Income		$          10,255		$            4,003		$          46,872		$        31,433

 

		Net Interest Margin
		For the Year Ended December 31,
		2024 (unaudited)						2023
		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		$        184,328		$      9,320		5.04 %		$        174,600		$      8,580		4.91 %
Debt securities, taxable-equivalent		90,184		2,531		2.80		152,094		2,791		1.84
Debt securities, tax exempt		16,651		273		1.64		19,430		330		1.70
Loans held for sale		343		-		-		158		-		-
Total loans(1)		1,391,552		119,416		8.56		1,315,578		109,843		8.35
Total interest-earning assets		1,683,058		131,540		7.79		1,661,860		121,544		7.31
Noninterest-earning assets		39,555						25,943
Total assets		$     1,722,613						$     1,687,803
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$        882,314		33,408		3.78 %		$        825,169		28,582		3.46 %
Time deposits		254,057		11,937		4.69		256,672		10,416		4.06
Total interest-bearing deposits		1,136,371		45,345		3.98		1,081,841		38,998		3.60
Total interest-bearing liabilities		1,136,371		45,345		3.98		1,081,841		38,998		3.60
Noninterest-bearing liabilities:
Noninterest-bearing deposits		381,660						433,603
Other noninterest-bearing liabilities		12,419						10,423
Total noninterest-bearing liabilities		394,079						444,026
Shareholders' equity		192,163						161,936
Total liabilities and shareholders' equity		$     1,722,613						$     1,687,803
Net interest income				$    86,195						$    82,546
Net interest spread						3.81 %						3.71 %
Net interest margin						5.11 %						4.97 %

(1)	Nonaccrual loans are included in total loans

 

		Net Interest Margin
		For the Three Months Ended December 31,
		2024 (unaudited)						2023
		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		$        195,948		$      2,423		4.91 %		$        210,710		$      2,912		5.48 %
Debt securities, taxable-equivalent		50,504		265		2.08		150,291		685		1.81
Debt securities, tax exempt		14,216		60		1.67		18,250		77		1.67
Loans held for sale		526		-		-		284		-		-
Total loans(1)		1,422,382		29,582		8.25		1,362,533		28,727		8.36
Total interest-earning assets		1,683,576		32,330		7.62		1,742,068		32,401		7.38
Noninterest-earning assets		39,721						27,984
Total assets		$     1,723,297						$     1,770,052
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$        911,978		7,683		3.34 %		$        848,990		8,237		3.85 %
Time deposits		250,209		2,910		4.61		254,460		2,867		4.47
Total interest-bearing deposits		1,162,187		10,593		3.62		1,103,450		11,104		3.99
Total interest-bearing liabilities		$     1,162,187		10,593		3.62		$     1,103,450		11,104		3.99
Noninterest-bearing liabilities:
Noninterest-bearing deposits		$        338,645						$        485,312
Other noninterest-bearing liabilities		13,014						12,235
Total noninterest-bearing liabilities		351,659						497,547
Shareholders' equity		209,451						169,055
Total liabilities and shareholders' equity		$     1,723,297						$     1,770,052
Net interest income				$    21,737						$    21,297
Net interest spread						4.00 %						3.39 %
Net interest margin						5.12 %						4.85 %

(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, January 16, 2025 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/Gvl7ABbAdkV. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/Gvl7ABbAdkV 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 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 was Bank7 Corp's (BSVN) net income for full-year 2024?

Bank7 Corp. reported a net income of $45.7 million for full-year 2024, representing a 61.62% increase from $28.3 million in 2023.

How much did BSVN's earnings per share increase in 2024?

BSVN's earnings per share increased by 58.69% to $4.84 in 2024, compared to $3.05 in 2023.

What were Bank7's (BSVN) capital ratios as of December 31, 2024?

As of December 31, 2024, Bank7's Tier 1 leverage ratio was 12.18%, Tier 1 risk-based capital ratio was 13.99%, and total risk-based capital ratio was 15.22%.

What was BSVN's total loan growth in 2024?

BSVN's total loans increased by 2.69% to $1.4 billion in 2024 compared to 2023.

How did Bank7's (BSVN) total assets change in 2024?

Bank7's total assets decreased by 1.80% to $1.7 billion in 2024 compared to $1.8 billion in 2023.