Bank7 Corp. Announces Q3 2023 Earnings

OKLAHOMA CITY, Oct. 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 ended September 30, 2023.  "We are pleased to report another quarter of record PPE and record interest income.  Our success continues to be driven by our long-term and broad-based deposit relationships, our debt-free and liquid balance sheet, and our disciplined approach to cost controls.  With the exception of one large credit, we continue to benefit from strong asset quality and remain confident that the overall portfolio is indicative of our historical low loan loss results," said Thomas L. Travis, President and CEO of the Company. 

For the three months ended September 30, 2023 compared to the three months ended September 30, 2022:

  • Net Income of $7.9 million compared to $8.0 million, a decrease of 2.3%
  • Earnings per share of $0.85 compared to $0.87, a decrease of 2.7%
  • Total assets of $1.8 billion compared to $1.6 billion, an increase of 12.11%
  • Total loans of $1.4 billion compared to $1.2 billion, an increase of 12.94%
  • PPE of $14.4 million compared to $12.8 million, an increase of 12.62%
  • Total interest income of $31.7 million compared to $21.7 million, an increase of 46.24%

Nine months ended September 30, 2023 compared to nine months ended September 30, 2022

  • Net Income of $27.2 million compared to $21.2 million, an increase of 28.03%
  • Earnings per share of $2.94 compared to $2.31, an increase of 27.11%
  • Total assets of $1.8 billion compared to $1.6 billion, an increase of 12.11%
  • Total loans of $1.4 billion compared to $1.2 billion, an increase of 12.94%
  • PPE of $41.3 million compared to $30.9 million, an increase of 33.88%
  • Total interest income of $89.1 million compared to $53.3 million, an increase of 67.29%

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, 2023, the Bank's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 9.75%, 11.39%, and 12.64%, respectively.  On September 30, 2023, on a consolidated basis, the Company's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 9.76%, 11.39%, and 12.64%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

 






Bank7 Corp.


Consolidated Balance Sheets






Assets

September 30,
2023
(unaudited)


December 31,
2022







Cash and due from banks

$             169,490


$             109,115


Interest-bearing time deposits in other banks

17,182


5,474


Available-for-sale debt securities

167,138


173,165


Loans, net of allowance for credit losses of $20,649 and $14,734





at September 30, 2023 and December 31, 2022, respectively

1,372,128


1,255,722


Loans held for sale, at fair value

1,143


-


Premises and equipment, net

14,963


13,106


Nonmarketable equity securities

1,251


1,209


Core deposit intangibles

1,107


1,336


Goodwill

8,458


8,603


Interest receivable and other assets

19,539


16,439







      Total assets

$          1,772,399


$          1,584,169







Liabilities and Shareholders' Equity










Deposits





Noninterest-bearing

$             480,827


$             439,409


Interest-bearing

1,112,745


989,891







      Total deposits

1,593,572


1,429,300







Income taxes payable

419


1,054


Interest payable and other liabilities

10,501


9,715







      Total liabilities

1,604,492


1,440,069







Shareholders' equity





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





issued and outstanding: 9,184,975 and 9,131,973 at 

92


91


September 30, 2023 and December 31, 2022 respectively










Additional paid-in capital

97,068


95,263


Retained earnings

79,825


58,049


Accumulated other comprehensive income (loss)

(9,078)


(9,303)







      Total shareholders' equity

167,907


144,100







      Total liabilities and shareholders' equity

$          1,772,399


$          1,584,169












 













Unaudited as of




Three Months Ended
September 30,


Nine Months Ended
September 30,




2023


2022


2023


2022


Interest Income










Loans, including fees


$         28,880


$      20,466


$        81,117


$      50,597


Interest-bearing time deposits in other banks


159


10


270


39


Debt securities, taxable


699


690


2,106


1,625


Debt securities, tax-exempt


81


90


253


273


Other interest and dividend income


1,903


435


5,398


754












      Total interest income


31,722


21,691


89,144


53,288












Interest Expense










Deposits


10,976


2,646


27,894


4,241












      Total interest expense


10,976


2,646


27,894


4,241












Net Interest Income


20,746


19,045


61,250


49,047












Provision for Credit Losses


4,159


2,348


5,645


2,843












Net Interest Income After Provision for Credit Losses


16,587


16,697


55,605


46,204












Noninterest Income










Secondary market income


6


134


172


395


Total noninterest income


(7)


(10)


(15)


(127)


Service charges on deposit accounts


213


210


647


678


Other


795


506


1,668


1,261












      Total noninterest income


1,007


840


2,472


2,207












Noninterest Expense










Salaries and employee benefits


4,910


3,996


14,299


12,148


Furniture and equipment


254


390


755


1,134


Occupancy


662


614


1,980


1,736


Data and item processing


424


522


1,280


1,468


Accounting, marketing and legal fees


14


340


491


782


Regulatory assessments


279


551


1,013


973


Advertsing and public relations


74


83


273


314


Travel, lodging and entertainment


85


94


255


216


Other


688


543


2,068


1,745












      Total noninterest expense


7,390


7,133


22,414


20,516












Income Before Taxes


10,204


10,404


35,663


27,895


      Income tax expense


2,351


2,363


8,457


6,646


Net Income


$           7,853


$        8,041


$        27,206


$      21,249












Earnings per common share - basic


$             0.86


$          0.88


$            2.97


$          2.34


Earnings per common share - diluted


0.85


0.87


2.94


2.31


Weighted average common shares outstanding - basic


9,158,027


9,100,789


9,152,788


9,095,724


Weighted average common shares outstanding - diluted


9,273,595


9,209,754


9,262,003


9,194,928












Other Comprehensive Income (Loss)










Unrealized gains(losses) on securities, net of (tax)tax benefit of $485 and $1.7 million










for the three months ended September 30, 2023 and 2022, respectively; ($69) and 










$3.2 million for the nine months ended September 30, 2023 and 2022, respectively


$            (372)


$       (2,674)


$             214


$     (10,691)


Reclassification adjustment for realized loss included in net income










net of tax of $2 and $2 for the three months ended September 30, 2023 and










2022, respectively; $4 and $29 for the nine months ended










September 30, 2023 and 2022, respectively


5


8


11


98


Other comprehensive income(loss)


$            (367)


$       (2,666)


$             225


$     (10,593)


Comprehensive Income


$           7,486


$        5,375


$        27,431


$      10,656












 

















Net Interest Margin




For the Nine Months Ended September 30,




2023
(unaudited)


2022




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


$       162,432


$        5,668


4.67 %


$       139,133


$           793


0.76 %


Debt securities, taxable-equivalent


152,702


2,106


1.84


142,913


1,625


1.52


Debt securities, tax exempt


19,828


253


1.71


22,087


273


1.65


Loans held for sale


115


-


-


686


-


-


Total loans(1)


1,299,754


81,117


8.34


1,103,114


50,597


6.13


Total interest-earning assets


1,634,831


89,144


7.29


1,407,933


53,288


5.06


Noninterest-earning assets


22,560






24,069






Total assets


$    1,657,391






$    1,432,002




















Funding sources:














Interest-bearing liabilities:














Deposits:














Transaction accounts


$       823,331


20,346


3.35 %


$       699,670


3,351


0.64 %


Time deposits


292,235


7,548


3.92


168,608


890


0.71


Total interest-bearing deposits


1,115,566


27,894


3.48


868,278


4,241


0.65


Total interest-bearing liabilities


1,115,566


27,894


3.48


868,278


4,241


0.65
















Noninterest-bearing liabilities:














Noninterest-bearing deposits


422,691






424,720






Other noninterest-bearing liabilities


11,649






7,128






Total noninterest-bearing liabilities


434,340






431,848






Shareholders' equity


107,485






131,876






Total liabilities and shareholders' equity


$    1,657,391






$    1,432,002




















Net interest income




$      61,250






$      49,047




Net interest spread






3.81 %






4.41 %


Net interest margin






5.01 %






4.66 %


(1)           Nonaccrual loans are included in total loans
















 

















Net Interest Margin




For the Three Months Ended September 30,




2023
(unaudited)


2022




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


$       176,589


$       2,062


4.63 %


$         99,751


$          445


1.77 %


Debt securities, taxable-equivalent


151,174


699


1.83


163,699


690


1.67


Debt securities, tax exempt


19,430


81


1.65


21,811


90


1.64


Loans held for sale


232


-


-


1,281


-


-


Total loans(1)


1,344,038


28,880


8.52


1,213,080


20,466


6.69


Total interest-earning assets


1,691,463


31,722


7.44


1,499,622


21,691


5.74


Noninterest-earning assets


23,407






23,197






Total assets


$    1,714,870






$    1,522,819




















Funding sources:














Interest-bearing liabilities:














Deposits:














Transaction accounts


$       823,331


7,733


3.73 %


$       761,927


2,338


1.22 %


Time deposits


292,235


3,243


4.40


152,910


308


0.80


Total interest-bearing deposits


1,115,566


10,976


3.90


914,837


2,646


1.15


Total interest-bearing liabilities


$    1,115,566


10,976


3.90


$       914,837


2,646


1.15
















Noninterest-bearing liabilities:














Noninterest-bearing deposits


$       422,691






$       463,882






Other noninterest-bearing liabilities


11,649






8,132






Total noninterest-bearing liabilities


434,340






472,014






Shareholders' equity


164,964






135,968






Total liabilities and shareholders' equity


$    1,714,870






$    1,522,819




















Net interest income




$     20,746






$     19,045




Net interest spread






3.54 %






4.60 %


Net interest margin






4.87 %






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 third quarter results, which will be broadcast live over the Internet, on Thursday, October 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/o0Oqylxyz5k. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/o0Oqylxyz5k 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.