Bank7 Corp. Announces Q1 2022 Earnings

OKLAHOMA CITY, April 26, 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 March 31, 2022.  "We are pleased with the strength of our core earnings, as evidenced by the healthy growth in our pre-tax, pre-provision earnings (PPE).  Our PPE is best in class and consistently exceeds our peers.  We continue to benefit from our dynamic geographic markets, and we are also extremely asset sensitive, which positions us well for the remainder of 2022," said Thomas L. Travis, President and CEO of the Company. 

Three months ended March 31, 2022 compared to three months ended March 31, 2021

  • Net income of $6.2 million compared to $5.1 million, an increase of 21.2%
  • Earnings per share of $0.68 compared to $0.56, an increase of 21.5%
  • Total assets of $1.4 billion compared to $1.0 billion, an increase of 35.9%
  • Total loans of $1.1 billion compared to $861.4 million, an increase of 23.3%
  • Total deposits of $1.3 billion compared to $929 million, an increase of 38.1%

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 March 31, 2022, the Bank's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 9.28%, 11.56%, and 12.56%, respectively.  On March 31, 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 9.27%, 11.54%, and 12.54%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

 

Bank7 Corp.


Consolidated Balance Sheets


March 31,
2022
(unaudited)


December 31,
2021


Assets











Cash and due from banks

$         126,275


$         195,359


Federal funds sold

8,088


9,493


Cash and cash equivalents

134,363


204,852


Interest-bearing time deposits in other banks

2,241


3,237


Available-for-sale debt securities

198,356


84,808


Loans, net of allowance for loan losses of $10,599 and





$10,316 at March 31, 2022 and December 31, 2021, respectively

1,051,222


1,018,085


Loans held for sale, at fair value

597


464


Premises and equipment, net

13,775


17,257


Nonmarketable equity securities

1,195


1,202


Core deposit intangibles

1,565


1,643


Goodwill

8,807


8,479


Interest receivable and other assets

9,111


10,522







Total assets

$      1,421,232


$      1,350,549







Liabilities and Shareholders' Equity










Deposits





Noninterest-bearing

$         420,972


$         366,705


Interest-bearing

862,307


850,766







Total deposits

1,283,279


1,217,471







Income taxes payable

2,610


-


Interest payable and other liabilities

6,695


5,670







Total liabilities

1,292,584


1,223,141







Shareholders' equity





Common stock, $0.01 par value; 50,000,000 shares authorized; shares 





issued and outstanding: 9,094,468 and 9,071,417 at 

91


91


March 31, 2022 and December 31, 2021 respectively





Additional paid-in capital

94,310


94,024


Retained earnings

38,242


33,149


Accumulated other comprehensive income

(3,995)


144







Total shareholders' equity

128,648


127,408







Total liabilities and shareholders' equity

$      1,421,232


$      1,350,549


 

 

Bank7 Corp.

Consolidated Statements of Income



 Unaudited as of  



Three Months Ended
March 31,





2022


2021

Interest Income





Loans, including fees


$                       14,377


$                       13,094

Interest-bearing time deposits in other banks


16


68

Debt securities, taxable


364


-

Debt securities, tax-exempt


98


-

Other interest and dividend income


70


26






Total interest income


14,925


13,188






Interest Expense





Deposits


717


875






Total interest expense


717


875






Net Interest Income


14,208


12,313






Provision for Loan Losses


276


1,275






Net Interest Income After Provision for Loan Losses


13,932


11,038






Noninterest Income





Secondary market income


166


14

Loss on sales of available-for-sale debt securities


(127)


-

Service charges on deposit accounts


249


120

Other


387


203






Total noninterest income


675


337






Noninterest Expense





Salaries and employee benefits


4,026


2,790

Furniture and equipment


358


202

Occupancy


551


472

Data and item processing


387


279

Accounting, marketing and legal fees


233


148

Regulatory assessments


196


141

Advertising and public relations


110


34

Travel, lodging and entertainment


48


89

Other


511


390






Total noninterest expense


6,420


4,545






Income Before Taxes


8,187


6,830

Income tax expense


2,003


1,726

Net Income


$                         6,184


$                         5,104






Earnings per common share - basic


$                           0.68


$                           0.56

Earnings per common share - diluted


0.68


0.56

Weighted average common shares outstanding - basic


9,088,975


9,049,007

Weighted average common shares outstanding - diluted


9,133,116


9,058,685

Other Comprehensive Income





Unrealized losses on securities, net of tax benefit of $1.5 million


$                        (3,995)


$                           -

Reclassification adjustment for realized loss included in net income


(127)


-

Other comprehensive gain, net of tax benefit of $1.5 million


$                        (4,122)


$                                 -

Comprehensive Income


$                         2,062


$                         5,104

 

 



Net Interest Margin



For the Three Months Ended March 31,



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


$      187,672


$          84


0.18%


$ 125,739


$          92


0.30%

Investment securities, taxable-equivalent


87,886


366


1.69


1,172


2


0.69



23,969


99


1.68


-


-


-

Loans held for sale


487


-


-


378


-


-

Total loans(1)


1,003,890


14,417


5.82


847,498


13,094


6.27

Total interest-earning assets


1,303,904


14,966


4.65


974,787


13,188


5.49

Noninterest-earning assets


24,342






7,103





Total assets


$   1,328,246






$ 981,890


















Funding sources:













Interest-bearing liabilities:













Deposits:













Transaction accounts


$      636,446


455


0.29%


$ 419,991


362


0.35%

Time deposits


169,602


259


0.62


205,557


513


1.01

Total interest-bearing deposits


806,048


714


0.36


625,548


875


0.57

Total interest-bearing liabilities


806,048


714


0.36


625,548


875


0.57














Noninterest-bearing liabilities:













Noninterest-bearing deposits


$      385,664






243,290





Other noninterest-bearing liabilities


6,301






4,193





Total noninterest-bearing liabilities


391,965






247,483





Shareholders' equity


130,233






108,859





Total liabilities and shareholders' equity


$   1,328,246






$ 981,890


















Net interest income




$   14,252






$   12,313



Net interest spread






4.30%






4.92%

Net interest margin






4.43%






5.12%

     (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 Tuesday, April 26, 2022 at 3:00 p.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/DLPzBJ2Bd7r. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/DLPzBJ2Bd7r 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

 

SOURCE Bank7 Corp.