Bank7 Corp. Announces Q4 and Full Year 2022 Earnings

OKLAHOMA CITY, Jan. 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 and year ended December 31, 2022.  "We are pleased to announce record achievements for our full year and also the 4th quarter, as we reached new milestones in net income, PPE, and earnings per share. Our continued success is due to our broad and deep team of talented commercial bankers, and their commitment to disciplined credit fundamentals and pricing. We are blessed to be located in such a dynamic geographic area, and we are confident of our future as we maintain our focus on fundamentals and growing our company," said Thomas L. Travis, President and CEO of the Company. 

For the year ended December 31, 2022 compared to the year ended December 31, 2021:

  • Net income of $29.6 million compared to $23.2 million, an increase of 27.98%
  • Earnings per share of $3.22 compared to $2.55, an increase of 26.27%
  • Total assets of $1.6 billion compared to $1.4 billion, an increase of 17.30%
  • Total loans of $1.3 billion compared to $1.0 billion, an increase of 23.54%
  • PPE of $43.9 million compared to $35.1 million, an increase of 24.97%
  • Total interest income of $78.7 million compared to $56.3 million, an increase of 39.90%

Three months ended December 31, 2022 compared to three months ended September 30, 2022

  • Net income of $8.4 million compared to $8.0 million, an increase of 4.29%
  • Earnings per share of $0.91 compared to $0.87, an increase of 4.60%
  • PPE of $13.0 million compared to $12.8 million, an increase of 1.74%
  • Total interest income of $25.5 million compared to $21.7 million, an increase of 17.39%

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, 2022, the Bank's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 9.18%, 11.26%, and 12.42%, respectively.  On December 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 9.19%, 11.25%, and 12.41%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.








Bank7 Corp.



Consolidated Balance Sheets



December 31, 2022
(unaudited)


December 31, 2021



Assets














Cash and due from banks

$         109,115


$              195,359



Federal funds sold

-


9,493



Cash and cash equivalents

109,115


204,852



Interest-bearing time deposits in other banks

5,474


3,237



Available-for-sale debt securities

173,165


84,808



Loans, net of allowance for loan losses of $14,734 and $10,316






    at December 31, 2022 and December 31, 2021, respectively

1,255,722


1,018,085



Loans held for sale, at fair value

-


464



Premises and equipment, net

13,106


17,257



Nonmarketable equity securities

1,209


1,202



Core deposit intangibles

1,336


1,643



Goodwill

8,603


8,479



Interest receivable and other assets

16,439


10,522









Total assets

$      1,584,169


$           1,350,549









Liabilities and Shareholders' Equity












Deposits






Noninterest-bearing

$         439,409


$              366,705



Interest-bearing

989,891


850,766









Total deposits

1,429,300


1,217,471









Income taxes payable

1,054


-



Interest payable and other liabilities

9,715


5,670









Total liabilities

1,440,069


1,223,141









Shareholders' equity






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






issued and outstanding: 9,131,973 and 9,071,417 at 

91


91



December 31, 2022 and December 31, 2021 respectively












Additional paid-in capital

95,263


94,024



Retained earnings

58,049


33,149



Accumulated other comprehensive income (loss)

(9,303)


144









Total shareholders' equity

144,100


127,408









Total liabilities and shareholders' equity

$      1,584,169


$           1,350,549














 














Three months ended
December 31,


Twelve months ended
December 31,




2022
(unaudited)


2021


2022
(unaudited)


2021


Interest Income










Loans, including fees


$         23,806


$      14,391


$        74,403


$      55,768


Interest-bearing time deposits in other banks


7


28


46


169


Debt securities, taxable


688


143


2,313


143


Debt securities, tax-exempt


87


31


360


31


Other interest and dividend income


874


63


1,627


178












Total interest income


25,462


14,656


78,749


56,289












Interest Expense










Deposits


5,081


677


9,322


3,053












Total interest expense


5,081


677


9,322


3,053












Net Interest Income


20,381


13,979


69,427


53,236












Provision for Loan Losses


1,625


850


4,468


4,175












Net Interest Income After Provision for Loan Losses


18,756


13,129


64,959


49,061












Noninterest Income










Secondary market income


91


182


486


435


Loss on sales and calls of available-for-sale debt securities


-


-


(127)


-


Service charges on deposit accounts


222


170


900


550


Other


419


405


1,680


1,265












Total noninterest income


732


757


2,939


2,250












Noninterest Expense










Salaries and employee benefits


4,892


3,298


17,040


11,983


Furniture and equipment


334


232


1,468


883


Occupancy


593


508


2,329


1,899


Data and item processing


600


380


2,068


1,237


Accounting, marketing and legal fees


203


353


984


800


Regulatory assessments


371


140


1,344


604


Advertising and public relations


164


101


477


282


Travel, lodging and entertainment


147


100


363


409


Other


825


1,086


2,568


2,300












Total noninterest expense


8,129


6,198


28,641


20,397












Income Before Taxes


11,359


7,688


39,257


30,914


Income tax expense


2,973


2,002


9,619


7,755


Net Income


$           8,386


$        5,686


$        29,638


$      23,159












Earnings per common share - basic


$             0.92


$          0.64


$            3.26


$          2.56


Earnings per common share - diluted


0.91


0.63


3.22


2.55


Weighted average common shares outstanding - basic


9,118,728


9,070,967


9,101,523


9,056,117


Weighted average common shares outstanding - diluted


9,232,333


9,162,124


9,204,716


9,091,536












Other Comprehensive Income (Loss)










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










three months ended December 31, 2022 and 2021, respectively; $2.8 million










and $0 for the twelve months ended December 31, 2022 and 2021, respectively


$           1,146


$           144


$        (9,543)


$           144


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










net of tax of $0 and $0 for the three months ended December 31, 2022 and 2021,










respectively; $31 and $0 for the twelve months ended December 30, 2022










and 2021, respectively


-


-


96


-


Other comprehensive loss


$           1,146


$           144


$        (9,447)


$           144


Comprehensive Income (Loss)


$           9,532


$        5,830


$        20,191


$      23,303





















 

















Net Interest Margin



For the Twelve Months Ended December 31,



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


$       129,624


$        1,673


1.29 %


$       126,136


$           347


0.28 %


Investment securities, taxable


145,915


2,313


1.59


4,663


143


3.07


Debt securities, tax exempt


21,635


360


1.66


1,852


31


1.67


Loans held for sale


586


-


-


318


-


-


Total loans(1)


1,143,380


74,403


6.51


905,804


55,768


6.16


Total interest-earning assets


1,441,140


78,749


5.46


1,038,773


56,289


5.42


Noninterest-earning assets


23,532






7,361






Total assets


$    1,464,672






$    1,046,134




















Funding sources:














Interest-bearing liabilities:














Deposits:














Transaction accounts


$       724,617


7,842


1.08 %


$       430,268


1,396


0.32 %


Time deposits


165,735


1,480


0.89


205,437


1,657


0.81


Total interest-bearing deposits


890,352


9,322


1.05


635,705


3,053


0.48


Total interest-bearing liabilities


890,352


9,322


1.05


635,705


3,053


0.48
















Noninterest-bearing liabilities:














Noninterest-bearing deposits


432,901






288,446






Other noninterest-bearing liabilities


7,520






4,930






Total noninterest-bearing liabilities


440,421






293,376






Shareholders' equity


133,899






117,053






Total liabilities and shareholders' equity


$    1,464,672






$    1,046,134




















Net interest income




$      69,427






$      53,236




Net interest spread






4.42 %






4.94 %


Net interest margin






4.82 %






5.12 %







(1)           Nonaccrual loans are included in total loans 






























 



For the Three Months Ended December 31,



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


$       101,427


$          881


3.45 %


$       130,106


$            91


0.23 %

Debt securities, taxable-equivalent


154,869


688


1.76


14,992


143


3.78

Debt securities, tax exempt


20,247


87


1.70


7,349


31


16.67

Loans held for sale


291


-


-


1,090


-


-

Total loans(1)


1,262,864


23,806


7.48


959,243


14,391


5.95

Total interest-earning assets


1,539,698


25,462


6.56


1,112,780


14,656


5.23

Noninterest-earning assets


21,937






11,613





Total assets


$    1,561,635






$    1,124,393


















Funding sources:













Interest-bearing liabilities:













Deposits:













Transaction accounts


$       798,073


4,491


2.23 %


$       490,739


373


0.30 %

Time deposits


157,211


590


1.49


183,867


304


0.66

Total interest-bearing deposits


955,284


5,081


2.11


674,606


677


0.40

Total interest-bearing liabilities


$       955,284


5,081


2.11


$       674,606


677


0.40














Noninterest-bearing liabilities:













Noninterest-bearing deposits


$       457,753






$       320,290





Other noninterest-bearing liabilities


8,683






5,181





Total noninterest-bearing liabilities


466,436






325,471





Shareholders' equity


139,915






124,316





Total liabilities and shareholders' equity


$    1,561,635






$    1,124,393


















Net interest income




$     20,381






$     13,979



Net interest spread






4.46 %






4.83 %

Net interest margin






5.25 %






4.98 %







(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 results, which will be broadcast live over the Internet, on Thursday, January 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/ARZ9lenLgOm. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/ARZ9lenLgOm 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.