Bank7 Corp. Announces Q2 2022 Earnings

OKLAHOMA CITY, July 27, 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 June 30, 2022.  "We are pleased to announce a strong quarter, as evidenced by record net income and earnings per share. Our dynamic geographic markets, strong loan growth and asset sensitive balance sheet, combined with our talented bankers, continues to produce outstanding results.  As we move forward, we intend to continue producing exceptional results through organic growth and strategic acquisitions," said Thomas L. Travis, President and CEO of the Company. 

Three months ended June 30, 2022 compared to three months ended March 31, 2022 

  • Net income of $7.0 million compared to $6.2 million, an increase of 13.5%
  • Diluted Earnings per share of $0.76 compared to $0.67, an increase of 13.4%
  • Total assets of $1.5 billion compared to $1.4 billion, an increase of 4.7%
  • Total loans of $1.2 billion compared to $1.1 billion, an increase of 8.5%
  • PPE of $9.5 million compared to $8.6 million, an increase of 12.3%
  • Total interest income of $16.7 million compared to $14.9 million, an increase of 11.7%

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, 2022, the Bank's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 8.97%, 11.21%, and 12.14%, respectively.  On June 30, 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 8.97%, 11.20%, and 12.14%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

 

Bank7 Corp.


Consolidated Balance Sheets


June 30, 2022
(unaudited)


December 31, 2021


Assets











Cash and due from banks

$          123,686


$               195,359


Federal funds sold

-


9,493


Cash and cash equivalents

123,686


204,852


Interest-bearing time deposits in other banks

1,992


3,237


Available-for-sale debt securities

185,048


84,808


Loans, net of allowance for loan losses of $10,819 and





$10,316 at June 30, 2022 and December 31, 2021, respectively

1,141,497


1,018,085


Loans held for sale, at fair value

635


464


Premises and equipment, net

13,581


17,257


Nonmarketable equity securities

1,192


1,202


Core deposit intangibles

1,489


1,643


Goodwill

8,717


8,479


Interest receivable and other assets

9,983


10,522







Total assets

$       1,487,820


$            1,350,549







Liabilities and Shareholders' Equity










Deposits





Noninterest-bearing

$          442,150


$               366,705


Interest-bearing

903,627


850,766







Total deposits

1,345,777


1,217,471







Income taxes payable

2,865


-


Interest payable and other liabilities

7,687


5,670







Total liabilities

1,356,329


1,223,141







Shareholders' equity





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





issued and outstanding: 9,098,655 and 9,071,417 at 

91


91


June 30, 2022 and December 31, 2021 respectively










Additional paid-in capital

95,016


94,024


Retained earnings

44,167


33,149


Accumulated other comprehensive income (loss)

(7,783)


144







Total shareholders' equity

131,491


127,408







Total liabilities and shareholders' equity

$       1,487,820


$            1,350,549


 



Three months ended
June 30, 


Six months ended
June 30, 






2022


2021


2022


2021

Interest Income









Loans, including fees


$        15,754


$        14,357


$        30,131


$        27,450

Interest-bearing time deposits in other banks


13


38


29


106

Debt securities, taxable


571


-


935


-

Debt securities, tax-exempt


85


-


183


-

Other interest and dividend income


249


42


319


68










Total interest income


16,672


14,437


31,597


27,624










Interest Expense









Deposits


878


772


1,595


1,647










Total interest expense


878


772


1,595


1,647










Net Interest Income


15,794


13,665


30,002


25,977










Provision for Loan Losses


219


1,300


495


2,575










Net Interest Income After Provision for Loan Losses


15,575


12,365


29,507


23,402










Noninterest Income









Secondary market income


95


78


261


92

Gain (Loss) on sales of available-for-sale debt securities (includes accumulated









other comprehensive loss reclassification of $10,000 and ($117,000) for the 


10


-


(117)


-

three months ended June 30, 2022 and 2021, respectively; $10,000 and $0 









for the six months ended June 30, 2022 and 2021, respectively)









Service charges on deposit accounts


219


119


468


239

Other


361


382


748


585










Total noninterest income


685


579


1,360


916










Noninterest Expense









Salaries and employee benefits


4,126


2,949


8,152


5,739

Furniture and equipment


386


231


744


433

Occupancy


571


458


1,122


930

Data and item processing


559


286


946


565

Accounting, marketing and legal fees


209


149


442


297

Regulatory assessments


226


161


422


302

Advertsing and public relations


121


71


231


105

Travel, lodging and entertainment


74


118


122


207

Other


691


452


1,202


841










Total noninterest expense


6,963


4,875


13,383


9,419










Income Before Taxes


9,297


8,069


17,484


14,899

Income tax expense


2,280


1,964


4,283


3,690

Net Income


$          7,017


$          6,105


$        13,201


$        11,209










Earnings per common share - basic


$            0.77


$            0.67


$            1.45


$            1.24

Earnings per common share - diluted


0.76


0.67


1.44


1.24

Weighted average common shares outstanding - basic


9,097,280


9,050,606


9,093,150


9,050,295

Weighted average common shares outstanding - diluted


9,194,923


9,074,408


9,187,637


9,066,797










Other Comprehensive Income (Loss)









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


$        (3,788)


$               -


$        (7,783)


$            -

Reclassification adjustment for realized gain(loss) included in net income,









net of tax of $17,000


10


-


(134)


-

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


$        (3,778)


$                 -


$        (7,917)


$                 -

Comprehensive Income (Loss)


$          3,239


$          6,105


$          5,284


$        11,209

 



Net Interest Margin



For the Six Months Ended June 30,



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


$        159,157


$            330


0.42 %


$        127,203


$            157


0.25 %


Investment securities, taxable


132,298


948


1.45


1,180


17


2.91


Debt securities, tax exempt


22,275


188


1.70


-


-


-


Loans held for sale


383


-


-


445


-


-


Total loans(1)


1,047,220


30,131


5.80


868,526


27,450


6.37


Total interest-earning assets


1,361,333


31,597


4.68


997,354


27,624


5.59


Noninterest-earning assets


24,506






6,090






Total assets


$     1,385,839






$     1,003,444




















Funding sources:














Interest-bearing liabilities:














Deposits:














Transaction accounts


$        667,159


1,012


0.31 %


$        412,070


691


0.34 %


Time deposits


176,587


583


0.67


208,903


956


0.92


Total interest-bearing deposits


843,746


1,595


0.38


620,973


1,647


0.53


Total interest-bearing liabilities


843,746


1,595


0.38


620,973


1,647


0.53
















Noninterest-bearing liabilities:














Noninterest-bearing deposits


405,674






266,237






Other noninterest-bearing liabilities


6,615






5,126






Total noninterest-bearing liabilities


412,289






271,363






Shareholders' equity


129,804






111,108






Total liabilities and shareholders' equity


$     1,385,839






$     1,003,444




















Net interest income




$       30,002






$       25,977




Net interest spread






4.30 %






5.05 %


Net interest margin






4.44 %






5.25 %


















(1)

Nonaccrual loans are included in total loans

 



For the Three Months Ended June 30,



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


$        130,961


$           249


0.76 %


$        128,643


$             64


0.20 %

Debt securities, taxable-equivalent


174,583


584


1.34


1,187


16


5.41

Debt securities, tax exempt


22,244


85


1.53


-


-


-

Loans held for sale


279


-


-


557


-


-

Total loans(1)


1,090,053


15,754


5.80


889,278


14,357


6.48

Total interest-earning assets


1,418,120


16,672


4.72


1,019,665


14,437


5.68

Noninterest-earning assets


25,341






5,086





Total assets


$     1,443,461






$     1,024,751


















Funding sources:













Interest-bearing liabilities:













Deposits:













Transaction accounts


$        693,619


555


0.32 %


$        399,293


329


0.33 %

Time deposits


183,494


323


0.71


212,212


443


0.84

Total interest-bearing deposits


877,113


878


0.40


611,505


772


0.51

Total interest-bearing liabilities


$        877,113


878


0.40


$        611,505


772


0.51














Noninterest-bearing liabilities:













Noninterest-bearing deposits


$        429,388






$        293,867





Other noninterest-bearing liabilities


6,925






6,047





Total noninterest-bearing liabilities


436,313






299,914





Shareholders' equity


130,035






113,332





Total liabilities and shareholders' equity


$     1,443,461






$     1,024,751


















Net interest income




$      15,794






$      13,665



Net interest spread






4.31 %






5.17 %

Net interest margin






4.47 %






5.38 %



(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 Wednesday, July 27, 2022 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/lO0ZkVNkM4w. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/lO0ZkVNkM4w 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.