Bank7 Corp. Announces Q1 2024 Earnings

About this update from Bank7 Corp.

OKLAHOMA CITY , April 12, 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 March 31, 2024 . "We are pleased with the strength of our core earnings, as evidenced by our pre-tax, pre-provision earnings (PPE). The Company's continued ability to exceed historical PPE is a function of our position in dynamic geographic markets, our long-term and broad-based deposit relationships, our debt-free and liquid balance sheet, and our disciplined approach to cost controls. Further, the Company's credit quality remains a point of strength with minimal exposure to office and retail commercial real estate," said Thomas L. Travis, President and CEO of the Company." For the three months ended March 31, 2024 compared to the three months ended March 31, 2023 : Net income of $11.3 million compared to $9.6 million , an increase of 17.50% Earnings per share of $1.21 compared to $1.04 , an increase of 16.35% Total assets of $1.8 billion compared to $1.7 billion , an increase of 6.89% Total loans of $1.4 billion compared to $1.3 billion , an increase of 7.39% PPE of $14.9 million compared to $13.0 million , an increase of 14.22% Total interest income of $33.3 million compared to $27.4 million , an increase of 21.57% 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 March 31, 2024 , the Bank's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 10.10%, 12.11%, and 13.36%, respectively. On March 31, 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 10.11%, 12.11%, and 13.36%, 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 Mar 31, 2024 Mar 31, 2023 Calculation of Pre-Provision Pre-Tax Earnings ("PPE") (Dollars in thousands) Net Income $ 3,595 $ 2,947 Income Tax Expense 14,883 12,554 Pre-tax net income 14,883 12,554 Add back: Provision for credit losses - 1 Add back: (Gain)Loss on sales/calls of AFS debt securities 14,883 13,030 Pre-provision pre-tax earnings 14,883 13,030 Bank7 Corp. Consolidated Balance Sheets Assets March 31, 2024 (unaudited) December 31 , 2023 Cash and due from banks $ 193,218 $ 181,042 Interest-bearing time deposits in other banks 17,181 17,679 Available-for-sale debt securities 151,872 169,487 Loans, net of allowance for credit losses of $19,696 and $19,691 at March 31, 2024 and December 31, 2023 , respectively 1,354,195 1,341,148 Loans held for sale, at fair value - 718 Premises and equipment, net 15,376 14,942 Nonmarketable equity securities 1,278 1,283 Core deposit intangibles 970 1,031 Goodwill 8,458 8,458 Interest receivable and other assets 32,435 35,878 Total assets $ 1,774,983 $ 1,771,666 Liabilities and Shareholders' Equity Deposits Noninterest-bearing $ 452,326 $ 482,349 Interest-bearing 1,127,846 1,109,042 Total deposits 1,580,172 1,591,391 Income taxes payable 3,946 302 Interest payable and other liabilities 10,483 9,647 Total liabilities 1,594,601 1,601,340 Shareholders' equity Common stock, $0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,238,206 and 9,197,696 at March 31, 2024 and December 31, 2023 , respectively 92 92 Additional paid-in capital 97,669 97,417 Retained earnings 88,310 78,962 Accumulated other comprehensive loss (5,689) (6,145) Total shareholders' equity 180,382 170,326 Total liabilities and shareholders' equity $ 1,774,983 $ 1,771,666 Three Months Ended March 31 , 2024 (unaudited) 2023 Interest Income Loans, including fees $ 30,117 $ 25,352 Interest-bearing time deposits in other banks 253 49 Debt securities, taxable 1,012 706 Debt securities, tax-exempt 73 87 Other interest and dividend income 1,832 1,186 Total interest income 33,287 27,380 Interest Expense Deposits 11,277 7,374 Total interest expense 11,277 7,374 Net Interest Income 22,010 20,006 Provision for Credit Losses - 475 Net Interest Income After Provision for Credit Losses 22,010 19,531 Noninterest Income Mortgage lending income 51 54 Loss on sales, prepayments, and calls of available-for-sale debt securities - (1) Service charges on deposit accounts 249 235 Other 1,708 384 Total noninterest income 2,008 672 Noninterest Expense Salaries and employee benefits 5,289 4,680 Furniture and equipment 230 249 Occupancy 661 719 Data and item processing 458 386 Accounting, marketing and legal fees 99 298 Regulatory assessments 386 394 Advertsing and public relations 145 148 Travel, lodging and entertainment 51 61 Other 1,816 714 Total noninterest expense 9,135 7,649 Income Before Taxes 14,883 12,554 Income tax expense 3,595 2,947 Net Income $ 11,288 $ 9,607 Earnings per common share - basic $ 1.22 $ 1.05 Earnings per common share - diluted 1.21 1.04 Weighted average common shares outstanding - basic 9,220,154 9,146,932 Weighted average common shares outstanding - diluted 9,317,813 9,264,247 Other Comprehensive Income Unrealized gains on securities, net of tax expense of $0 and $554 for the three months ended March 31, 2024 and 2023, respectively $ 456 $ 1,755 Reclassification adjustment for realized losses included in net income net of tax of $0 and $0 for the three months ended March 31, 2024 and 2023, respectively - 1 Other comprehensive income $ 456 $ 1,756 Comprehensive Income $ 11,744 $ 11,363 Net Interest Margin For the Three Months Ended March 31 , 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 $ 176,072 $ 2,085 4.75 % $ 134,650 $ 1,235 3.72 % Debt securities, taxable-equivalent 153,468 1,012 2.64 153,533 706 1.86 Debt securities, tax exempt 18,269 73 1.60 20,318 87 1.74 Loans held for sale 238 - - 43 - - Total loans(1) 1,369,692 30,117 8.82 1,271,081 25,352 8.09 Total interest-earning assets 1,717,739 33,287 7.77 1,579,625 27,380 7.03 Noninterest-earning assets 39,769 23,542 Total assets $ 1,757,508 $ 1,603,167 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 845,129 8,196 3.89 % $ 803,618 5,753 2.90 % Time deposits 264,973 3,081 4.66 213,760 1,621 3.08 Total interest-bearing deposits 1,110,102 11,277 4.07 1,017,378 7,374 2.94 Total interest-bearing liabilities $ 1,110,102 11,277 4.07 $ 1,017,378 7,374 2.94 Noninterest-bearing liabilities: Noninterest-bearing deposits $ 460,028 $ 425,640 Other noninterest-bearing liabilities 10,970 11,131 Total noninterest-bearing liabilities 470,998 436,771 Shareholders' equity 176,408 149,018 Total liabilities and shareholders' equity $ 1,757,508 $ 1,603,167 Net interest income $ 22,010 $ 20,006 Net interest spread 3.70 % 4.10 % Net interest margin 5.14 % 5.14 % (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 Friday, April 12, 2024 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/w8qEpOZ7G6v . For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/w8qEpOZ7G6v 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 View original content to download multimedia: https://www.prnewswire.com/news-releases/bank7-corp-announces-q1-2024-earnings-302115100.html SOURCE Bank7 Corp.

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