Bank7 Corp. Announces Q3 2022 Earnings

OKLAHOMA CITY, Oct. 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 September 30, 2022.  "We are pleased to announce another excellent quarter, as evidenced by the Company's record net income and earnings per share. In addition to our talented bankers, our position in dynamic geographic markets, strong loan growth, and asset sensitive balance sheet, continues to produce outstanding results.  Moving forward, we are focused on maintaining such results through organic growth and strategic acquisitions," said Thomas L. Travis, President and CEO of the Company. 

Three months ended September 30, 2022 compared to three months ended June 30, 2022

  • Net income of $8.04 million compared to $7.02 million, an increase of 14.48%
  • Diluted earnings per share of $0.87 compared to $0.76, an increase of 14.47%
  • Total assets of $1.58 billion compared to $1.49 billion, an increase of 6.28%
  • Total loans of $1.23 billion compared to $1.15 billion, an increase of 7.01%
  • PPE of $12.76 million compared to $9.53 million, an increase of 34.15%
  • Total interest income of $21.69 million compared to $16.67 million, an increase of 30.10%

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, 2022, the Bank's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 9.01%, 11.04%, and 12.10%, respectively.  On September 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 9.01%, 11.03%, and 12.09%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

Bank7 Corp.


Consolidated Balance Sheets


September 30,
2022
(unaudited)


December 31,
2021


Assets











Cash and due from banks

$         147,241


$              195,359


Federal funds sold

-


9,493


            Cash and cash equivalents

147,241


204,852


Interest-bearing time deposits in other banks

1,494


3,237


Available-for-sale debt securities

174,534


84,808


Loans, net of allowance for loan losses of $13,153 and





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

1,219,998


1,018,085


Loans held for sale, at fair value

204


464


Premises and equipment, net

13,352


17,257


Nonmarketable equity securities

1,193


1,202


Core deposit intangibles

1,412


1,643


Goodwill

8,068


8,479


Interest receivable and other assets

13,456


10,522







            Total assets

$      1,580,952


$           1,350,549







Liabilities and Shareholders' Equity










Deposits





      Noninterest-bearing

$         497,768


$              366,705


      Interest-bearing

939,568


850,766







            Total deposits

1,437,336


1,217,471







Income taxes payable

446


-


Interest payable and other liabilities

7,351


5,670







            Total liabilities

1,445,133


1,223,141







Shareholders' equity





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





         issued and outstanding: 9,115,739 and 9,071,417 at 

91


91


         September 30, 2022 and December 31, 2021 respectively










      Additional paid-in capital

95,054


94,024


      Retained earnings

51,123


33,149


      Accumulated other comprehensive income (loss)

(10,449)


144







            Total shareholders' equity

135,819


127,408







            Total liabilities and shareholders' equity

$      1,580,952


$           1,350,549


 



Three months ended
September 30,
(unaudited)


Nine months ended
September 30,
(unaudited)






2022


2021


2022


2021

Interest Income









Loans, including fees


$      20,466


$      13,927


$      50,597


$      41,377

Interest-bearing time deposits in other banks


10


35


39


141

Debt securities, taxable


690


-


1,625


-

Debt securities, tax-exempt


90


-


273


-

Other interest and dividend income


435


46


754


114










            Total interest income


21,691


14,008


53,288


41,632










Interest Expense









Deposits


2,646


729


4,241


2,376










            Total interest expense


2,646


729


4,241


2,376










Net Interest Income


19,045


13,279


49,047


39,256










Provision for Loan Losses


2,348


750


2,843


3,325










Net Interest Income After Provision for Loan Losses


16,697


12,529


46,204


35,931










Noninterest Income









Secondary market income


134


161


395


253

Gain (Loss) on sales, maturities, prepayments and calls of available-for-sale 









   debt securities


(10)


-


(127)


-

Service charges on deposit accounts


210


141


678


380

Other


506


275


1,261


860










            Total noninterest income


840


577


2,207


1,493










Noninterest Expense









Salaries and employee benefits


3,996


2,946


12,148


8,685

Furniture and equipment


390


218


1,134


651

Occupancy


614


461


1,736


1,391

Data and item processing


522


292


1,468


857

Accounting, marketing and legal fees


340


150


782


447

Regulatory assessments


551


162


973


464

Advertsing and public relations


83


76


314


181

Travel, lodging and entertainment


94


102


216


309

Other


543


372


1,745


1,213










            Total noninterest expense


7,133


4,779


20,516


14,198










Income Before Taxes


10,404


8,327


27,895


23,226

            Income tax expense


2,363


2,063


6,646


5,753

Net Income


$        8,041


$        6,264


$      21,249


$      17,473










Earnings per common share - basic


$          0.88


$          0.69


$          2.34


$          1.93

Earnings per common share - diluted


0.87


0.69


2.31


1.92

Weighted average common shares outstanding - basic


9,100,789


9,052,718


9,095,724


9,051,112

Weighted average common shares outstanding - diluted


9,208,850


9,105,255


9,194,586


9,078,671










Other Comprehensive Income (Loss)









Unrealized losses on securities, net of tax benefit of $1.7 million and $0 for the









   three months ended September 30, 2022 and 2021, respectively; $3.2 million









   and $0 for the nine months ended September 30, 2022 and 2021, respectively


$       (2,674)


$              -


$     (10,691)


$              -

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









   net of tax of $2 and $0 for the three months ended September 30, 2022 and 2021,









   respectively; $29 and $0 for the nine months ended September 30, 2022 and 2021,









   respectively


8


-


98


-

Other comprehensive loss, net of tax benefit of $1.7 million and $0 for the









   three months ended September 30, 2022 and 2021, respectively; $3.2 million









   and $0 for the nine months ended September 30, 2022 and 2021, respectively


$       (2,666)


$                -


$     (10,593)


$                -

Comprehensive Income (Loss)


$        5,375


$        6,264


$      10,656


$      17,473

 



Net Interest Margin



For the Nine Months Ended September 30,



2022
(unaudited)


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


$       139,133


$           793


0.76 %


$       124,801


$           236


0.25 %


Investment securities, taxable


150,180


1,625


1.45


1,182


19


2.15


Debt securities, tax exempt


14,820


273


2.46


-


-


-


Loans held for sale


686


-


-


501


-


-


Total loans(1)


1,103,114


50,597


6.13


887,353


41,377


6.23


Total interest-earning assets


1,407,933


53,288


5.06


1,013,837


41,632


5.49


Noninterest-earning assets


24,069






5,927






Total assets


$    1,432,002






$    1,019,764




















Funding sources:














Interest-bearing liabilities:














Deposits:














Transaction accounts


$       699,670


3,351


0.64 %


$       410,299


1,024


0.33 %


Time deposits


168,608


890


0.71


212,706


1,352


0.85


Total interest-bearing deposits


868,278


4,241


0.65


623,005


2,376


0.51


Total interest-bearing liabilities


868,278


4,241


0.65


623,005


2,376


0.51
















Noninterest-bearing liabilities:














Noninterest-bearing deposits


424,720






277,308






Other noninterest-bearing liabilities


7,128






5,634






Total noninterest-bearing liabilities


431,848






282,942






Shareholders' equity


131,876






113,817






Total liabilities and shareholders' equity


$    1,432,002






$    1,019,764




















Net interest income




$      49,047






$      39,256




Net interest spread






4.41 %






4.98 %


Net interest margin






4.66 %






5.18 %



      (1)           Nonaccrual loans are included in total loans 

 



For the Three Months Ended September 30,



2022
(unaudited)


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


$         99,751


$          445


1.77 %


$       120,078


$            79


0.26 %

Debt securities, taxable-equivalent


163,699


690


1.67


1,187


2


0.67

Debt securities, tax exempt


21,811


90


1.64


-


-


-

Loans held for sale


1,281


-


-


610


-


-

Total loans(1)


1,213,080


20,466


6.69


924,391


13,927


5.98

Total interest-earning assets


1,499,622


21,691


5.74


1,046,266


14,008


5.31

Noninterest-earning assets


23,197






5,607





Total assets


$    1,522,819






$    1,051,873


















Funding sources:













Interest-bearing liabilities:













Deposits:













Transaction accounts


$       761,927


2,338


1.22 %


$       401,843


332


0.33 %

Time deposits


152,910


308


0.80


220,189


397


0.72

Total interest-bearing deposits


914,837


2,646


1.15


622,032


729


0.46

Total interest-bearing liabilities


$       914,837


2,646


1.15


$       622,032


729


0.46














Noninterest-bearing liabilities:













Noninterest-bearing deposits


$       463,882






$       304,063





Other noninterest-bearing liabilities


8,132






6,633





Total noninterest-bearing liabilities


472,014






310,696





Shareholders' equity


135,968






119,145





Total liabilities and shareholders' equity


$    1,522,819






$    1,051,873


















Net interest income




$     19,045






$     13,279



Net interest spread






4.99 %






4.85 %

Net interest margin






5.04 %






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 first quarter results, which will be broadcast live over the Internet, on Wednesday, October 26, 2022 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/N4zQYGV2vjL. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/N4zQYGV2vjL 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.