Bank7 Corp. Announces Q3 2024 Earnings

OKLAHOMA CITY, Oct. 11, 2024 /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, 2024.  "We are pleased to announce another record quarter of net income and EPS.  Our properly matched balance sheet, disciplined approach to cost controls, and excellent credit quality continues to produce outstanding results" said Thomas L. Travis, President and CEO of the Company." 

For the three months ended September 30, 2024 compared to the three months ended September 30, 2023:

  • Net income of $11.8 million compared to $7.9 million, an increase of 49.97%
  • Earnings per share of $1.24 compared to $0.85, an increase of 45.88%
  • Total assets of $1.7 billion compared to $1.8 billion, a decrease of 1.80%
  • Total loans of $1.4 billion compared to $1.4 billion, an increase of 3.21%
  • PPE of $15.5 million compared to $14.4 million, an increase of 7.86%
  • Total interest income of $33.5 million compared to $31.7 million, an increase of 5.57%

Three months ended September 30, 2024 compared to three months ended June 30, 2024

  • Net income of $11.8 million compared to $11.5 million, an increase of 2.20%
  • Earnings per share of $1.24 compared to $1.23, an increase of 0.81%
  • Total assets of $1.7 billion compared to $1.7 billion, an increase of 3.42%
  • Total loans of $1.4 billion compared to $1.4 billion, an increase of 6.32%
  • PPE of $15.5 million compared to $15.3 million, an increase of 1.61%
  • Total interest income of $33.5 million compared to $32.4 million, an increase of 3.24%

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, 2024, the Bank's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 11.64%, 12.93%, and 14.12%, respectively.  On September 30, 2024, on a consolidated basis, the Company's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 11.64%, 12.92%, and 14.11%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators. 

Non-GAAP Financial Measures:
This earnings release contains the non-GAAP financial measure pre-provision pre-tax earnings ("PPE").  The Company's management uses this non-GAAP measure in their analysis of the Company's performance.  This measure adjusts GAAP performance to exclude from net income, income tax expense, provision for credit losses, and loss on sales and calls of available-for-sale debt securities.

 


For the Three Months Ended


September 30,
 2024


June 30,
 2024


September 30,
 2023

Calculation of Pre-Provision Pre-Tax Earnings ("PPE")

(Dollars in thousands)

Net Income

$             11,777


$             11,524


$               7,853

Income Tax Expense

3,719


3,731


2,351

Pre-tax net income

15,496


15,255


10,204

Add back: Provision for credit losses

-


-


4,159

Add back: (Gain)Loss on sales/calls of AFS debt securities

4


-


7

Pre-provision pre-tax earnings

15,500


15,255


14,370

 

Bank7 Corp.


Consolidated Balance Sheets











Assets

September 30, 2024
(unaudited)


December 31, 2023







Cash and due from banks

$             186,720


$             181,042


Interest-bearing time deposits in other banks

8,715


17,679


Available-for-sale debt securities

65,160


169,487


Loans, net of allowance for credit losses of $17,873 and





$19,691 at September 30, 2024 and December 31, 2023, respectively

1,419,671


1,341,148


Loans held for sale, at fair value

-


718


Premises and equipment, net

17,126


14,942


Nonmarketable equity securities

1,278


1,283


Core deposit intangibles

907


1,031


Goodwill

8,458


8,458


Interest receivable and other assets

32,407


35,878







Total assets

$          1,740,442


$          1,771,666







Liabilities and Shareholders' Equity










Deposits





Noninterest-bearing

$             322,480


$             482,349


Interest-bearing

1,201,736


1,109,042







Total deposits

1,524,216


1,591,391







Income taxes payable

427


302


Interest payable and other liabilities

11,637


9,647







Total liabilities

1,536,280


1,601,340







Shareholders' equity





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





issued and outstanding: 9,341,267 and 9,197,696 at September 30, 2024 





and December 31, 2023, respectively

93


92


Additional paid-in capital

100,760


97,417


Retained earnings

107,426


78,962


Accumulated other comprehensive loss

(4,117)


(6,145)







Total shareholders' equity

204,162


170,326







Total liabilities and shareholders' equity

$          1,740,442


$          1,771,666


 



Three Months Ended


Nine Months Ended



September 30,


September 30,



2024
(unaudited)


2023


2024
(unaudited)


2023

Interest Income









Loans, including fees


$         30,791


$      28,880


$        89,834


$      81,117

Interest-bearing time deposits in other banks


177


159


675


270

Debt securities, taxable


303


699


2,266


2,106

Debt securities, tax-exempt


69


81


214


253

Other interest and dividend income


2,148


1,903


6,221


5,398










Total interest income


33,488


31,722


99,210


89,144










Interest Expense









Deposits


12,271


10,976


34,752


27,894










Total interest expense


12,271


10,976


34,752


27,894










Net Interest Income


21,217


20,746


64,458


61,250










Provision for Credit Losses


-


4,159


-


5,645










Net Interest Income After Provision for Credit Losses


21,217


16,587


64,458


55,605










Noninterest Income









Mortgage lending income


103


6


233


172

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


(4)


(7)


(4)


(15)

Service charges on deposit accounts


233


213


742


647

Other


3,345


795


7,881


1,668










Total noninterest income


3,677


1,007


8,852


2,472










Noninterest Expense









Salaries and employee benefits


5,333


4,910


15,740


14,299

Furniture and equipment


258


254


813


755

Occupancy


711


662


1,985


1,980

Data and item processing


498


424


1,437


1,280

Accounting, marketing and legal fees


218


14


582


491

Regulatory assessments


261


279


984


1,013

Advertsing and public relations


129


74


358


273

Travel, lodging and entertainment


87


85


270


255

Other


1,903


688


5,507


2,068










Total noninterest expense


9,398


7,390


27,676


22,414










Income Before Taxes


15,496


10,204


45,634


35,663

Income tax expense


3,719


2,351


11,045


8,457

Net Income


$         11,777


$        7,853


$        34,589


$      27,206










Earnings per common share - basic


$             1.26


$          0.86


$            3.73


$          2.97

Earnings per common share - diluted


1.24


0.85


3.68


2.94

Weighted average common shares outstanding - basic


9,323,622


9,158,027


9,264,616


9,152,788

Weighted average common shares outstanding - diluted


9,498,318


9,273,595


9,402,214


9,262,003










Other comprehensive income (loss)









Unrealized gains (losses) on securities, net of tax expense of $515 and tax benefit of $485









for the three months ended September 30, 2024 and 2023, respectively; net of tax expense









of $638 and $70 for the nine months ended September 30, 2024 and 2023, respectively


$           1,628


$          (372)


$          2,025


$           214

Reclassification adjustment for realized losses included in net income net of tax of $1 and $2









for the three months ended September 30, 2024 and 2023, respectively; $1 and $4 for the 









nine months ended September 30, 2024 and 2023, respectively


3


5


3


11

Other comprehensive income (loss)


$           1,631


$          (367)


$          2,028


$           225

Comprehensive Income


$         13,408


$        7,486


$        36,617


$      27,431

 



Net Interest Margin



For the Nine Months Ended September 30,



2024
(unaudited)


2023



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


$       180,426


$        6,896


5.09 %


$       162,432


$        5,668


4.67 %

Debt securities, taxable-equivalent


103,507


2,266


2.92


152,702


2,106


1.84

Debt securities, tax exempt


17,468


214


1.63


19,828


253


1.71

Loans held for sale


281


-


-


115


-


-

Total loans(1)


1,381,200


89,834


8.66


1,299,754


81,117


8.34

Total interest-earning assets


1,682,882


99,210


7.85


1,634,831


89,144


7.29

Noninterest-earning assets


39,499






22,560





Total assets


$    1,722,381






$    1,657,391


















Funding sources:













Interest-bearing liabilities:













Deposits:













Transaction accounts


$       872,635


25,726


3.93 %


$       812,962


20,346


3.35 %

Time deposits


255,348


9,026


4.71


257,418


7,548


3.92

Total interest-bearing deposits


1,127,983


34,752


4.10


1,070,380


27,894


3.48

Total interest-bearing liabilities


1,127,983


34,752


4.10


1,070,380


27,894


3.48














Noninterest-bearing liabilities:













Noninterest-bearing deposits


395,822






420,356





Other noninterest-bearing liabilities


12,219






10,496





Total noninterest-bearing liabilities


408,041






430,852





Shareholders' equity


186,357






156,159





Total liabilities and shareholders' equity


$    1,722,381






$    1,657,391


















Net interest income




$      64,458






$      61,250



Net interest spread






3.75 %






3.81 %

Net interest margin






5.10 %






5.01 %


(1)           Nonaccrual loans are included in total loans

 



Net Interest Margin



For the Three Months Ended September 30,



2024
(unaudited)


2023



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


$       191,583


$       2,325


4.81 %


$       176,589


$       2,062


4.63 %

Debt securities, taxable-equivalent


51,172


303


2.35


151,174


699


1.83

Debt securities, tax exempt


16,889


69


1.62


19,430


81


1.65

Loans held for sale


250


-


-


232


-


-

Total loans(1)


1,418,512


30,791


8.61


1,344,038


28,880


8.52

Total interest-earning assets


1,678,406


33,488


7.92


1,691,463


31,722


7.44

Noninterest-earning assets


40,002






23,407





Total assets


$    1,718,408






$    1,714,870


















Funding sources:













Interest-bearing liabilities:













Deposits:













Transaction accounts


$       922,117


9,237


3.97 %


$       823,331


7,733


3.73 %

Time deposits


253,640


3,034


4.75


292,235


3,243


4.40

Total interest-bearing deposits


1,175,757


12,271


4.14


1,115,566


10,976


3.90

Total interest-bearing liabilities


$    1,175,757


12,271


4.14


$    1,115,566


10,976


3.90














Noninterest-bearing liabilities:













Noninterest-bearing deposits


$       332,487






$       422,691





Other noninterest-bearing liabilities


12,221






11,649





Total noninterest-bearing liabilities


344,708






434,340





Shareholders' equity


197,943






164,964





Total liabilities and shareholders' equity


$    1,718,408






$    1,714,870


















Net interest income




$     21,217






$     20,746



Net interest spread






3.78 %






3.54 %

Net interest margin






5.02 %






4.87 %


(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 Friday, October 11, 2024 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/A87GMojkvZD. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/A87GMojkvZD 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 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.