Bank7 Corp. Announces Q2 2022 Earnings

About this update from Bank7 Corp.

OKLAHOMA CITY , July 27, 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 June 30, 2022 . "We are pleased to announce a strong quarter, as evidenced by record net income and earnings per share. Our dynamic geographic markets, strong loan growth and asset sensitive balance sheet, combined with our talented bankers, continues to produce outstanding results. As we move forward, we intend to continue producing exceptional results through organic growth and strategic acquisitions," said Thomas L. Travis, President and CEO of the Company. Three months ended June 30, 2022 compared to three months ended March 31, 2022 Net income of $7.0 million compared to $6.2 million , an increase of 13.5% Diluted Earnings per share of $0.76 compared to $0.67 , an increase of 13.4% Total assets of $1.5 billion compared to $1.4 billion , an increase of 4.7% Total loans of $1.2 billion compared to $1.1 billion , an increase of 8.5% PPE of $9.5 million compared to $8.6 million , an increase of 12.3% Total interest income of $16.7 million compared to $14.9 million , an increase of 11.7% 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 June 30, 2022 , the Bank's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 8.97%, 11.21%, and 12.14%, respectively. On June 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 8.97%, 11.20%, and 12.14%, respectively. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators. Bank7 Corp. Consolidated Balance Sheets June 30, 2022 (unaudited) December 31, 2021 Assets Cash and due from banks $ 123,686 $ 195,359 Federal funds sold - 9,493 Cash and cash equivalents 123,686 204,852 Interest-bearing time deposits in other banks 1,992 3,237 Available-for-sale debt securities 185,048 84,808 Loans, net of allowance for loan losses of $10,819 and $10,316 at June 30, 2022 and December 31, 2021 , respectively 1,141,497 1,018,085 Loans held for sale, at fair value 635 464 Premises and equipment, net 13,581 17,257 Nonmarketable equity securities 1,192 1,202 Core deposit intangibles 1,489 1,643 Goodwill 8,717 8,479 Interest receivable and other assets 9,983 10,522 Total assets $ 1,487,820 $ 1,350,549 Liabilities and Shareholders' Equity Deposits Noninterest-bearing $ 442,150 $ 366,705 Interest-bearing 903,627 850,766 Total deposits 1,345,777 1,217,471 Income taxes payable 2,865 - Interest payable and other liabilities 7,687 5,670 Total liabilities 1,356,329 1,223,141 Shareholders' equity Common stock, $0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,098,655 and 9,071,417 at 91 91 June 30, 2022 and December 31, 2021 respectively Additional paid-in capital 95,016 94,024 Retained earnings 44,167 33,149 Accumulated other comprehensive income (loss) (7,783) 144 Total shareholders' equity 131,491 127,408 Total liabilities and shareholders' equity $ 1,487,820 $ 1,350,549 Three months ended June 30 , Six months ended June 30 , 2022 2021 2022 2021 Interest Income Loans, including fees $ 15,754 $ 14,357 $ 30,131 $ 27,450 Interest-bearing time deposits in other banks 13 38 29 106 Debt securities, taxable 571 - 935 - Debt securities, tax-exempt 85 - 183 - Other interest and dividend income 249 42 319 68 Total interest income 16,672 14,437 31,597 27,624 Interest Expense Deposits 878 772 1,595 1,647 Total interest expense 878 772 1,595 1,647 Net Interest Income 15,794 13,665 30,002 25,977 Provision for Loan Losses 219 1,300 495 2,575 Net Interest Income After Provision for Loan Losses 15,575 12,365 29,507 23,402 Noninterest Income Secondary market income 95 78 261 92 Gain (Loss) on sales of available-for-sale debt securities (includes accumulated other comprehensive loss reclassification of $10,000 and ( $117,000 ) for the 10 - (117) - three months ended June 30, 2022 and 2021, respectively; $10,000 and $0 for the six months ended June 30, 2022 and 2021, respectively) Service charges on deposit accounts 219 119 468 239 Other 361 382 748 585 Total noninterest income 685 579 1,360 916 Noninterest Expense Salaries and employee benefits 4,126 2,949 8,152 5,739 Furniture and equipment 386 231 744 433 Occupancy 571 458 1,122 930 Data and item processing 559 286 946 565 Accounting, marketing and legal fees 209 149 442 297 Regulatory assessments 226 161 422 302 Advertsing and public relations 121 71 231 105 Travel, lodging and entertainment 74 118 122 207 Other 691 452 1,202 841 Total noninterest expense 6,963 4,875 13,383 9,419 Income Before Taxes 9,297 8,069 17,484 14,899 Income tax expense 2,280 1,964 4,283 3,690 Net Income $ 7,017 $ 6,105 $ 13,201 $ 11,209 Earnings per common share - basic $ 0.77 $ 0.67 $ 1.45 $ 1.24 Earnings per common share - diluted 0.76 0.67 1.44 1.24 Weighted average common shares outstanding - basic 9,097,280 9,050,606 9,093,150 9,050,295 Weighted average common shares outstanding - diluted 9,194,923 9,074,408 9,187,637 9,066,797 Other Comprehensive Income (Loss) Unrealized losses on securities, net of tax benefit of $1.5 million $ (3,788) $ - $ (7,783) $ - Reclassification adjustment for realized gain(loss) included in net income, net of tax of $17,000 10 - (134) - Other comprehensive loss, net of tax benefit of $1.5 million $ (3,778) $ - $ (7,917) $ - Comprehensive Income (Loss) $ 3,239 $ 6,105 $ 5,284 $ 11,209 Net Interest Margin For the Six Months Ended June 30 , 2022 2021 AverageBalance InterestIncome/Expense AverageYield/Rate AverageBalance InterestIncome/Expense AverageYield/Rate (Dollars in thousands) Interest-Earning Assets: Short-term investments $ 159,157 $ 330 0.42 % $ 127,203 $ 157 0.25 % Investment securities, taxable 132,298 948 1.45 1,180 17 2.91 Debt securities, tax exempt 22,275 188 1.70 - - - Loans held for sale 383 - - 445 - - Total loans(1) 1,047,220 30,131 5.80 868,526 27,450 6.37 Total interest-earning assets 1,361,333 31,597 4.68 997,354 27,624 5.59 Noninterest-earning assets 24,506 6,090 Total assets $ 1,385,839 $ 1,003,444 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 667,159 1,012 0.31 % $ 412,070 691 0.34 % Time deposits 176,587 583 0.67 208,903 956 0.92 Total interest-bearing deposits 843,746 1,595 0.38 620,973 1,647 0.53 Total interest-bearing liabilities 843,746 1,595 0.38 620,973 1,647 0.53 Noninterest-bearing liabilities: Noninterest-bearing deposits 405,674 266,237 Other noninterest-bearing liabilities 6,615 5,126 Total noninterest-bearing liabilities 412,289 271,363 Shareholders' equity 129,804 111,108 Total liabilities and shareholders' equity $ 1,385,839 $ 1,003,444 Net interest income $ 30,002 $ 25,977 Net interest spread 4.30 % 5.05 % Net interest margin 4.44 % 5.25 % (1) Nonaccrual loans are included in total loans For the Three Months Ended June 30 , 2022 2021 AverageBalance InterestIncome/Expense AverageYield/Rate AverageBalance InterestIncome/Expense AverageYield/Rate (Dollars in thousands) Interest-Earning Assets: Short-term investments $ 130,961 $ 249 0.76 % $ 128,643 $ 64 0.20 % Debt securities, taxable-equivalent 174,583 584 1.34 1,187 16 5.41 Debt securities, tax exempt 22,244 85 1.53 - - - Loans held for sale 279 - - 557 - - Total loans(1) 1,090,053 15,754 5.80 889,278 14,357 6.48 Total interest-earning assets 1,418,120 16,672 4.72 1,019,665 14,437 5.68 Noninterest-earning assets 25,341 5,086 Total assets $ 1,443,461 $ 1,024,751 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 693,619 555 0.32 % $ 399,293 329 0.33 % Time deposits 183,494 323 0.71 212,212 443 0.84 Total interest-bearing deposits 877,113 878 0.40 611,505 772 0.51 Total interest-bearing liabilities $ 877,113 878 0.40 $ 611,505 772 0.51 Noninterest-bearing liabilities: Noninterest-bearing deposits $ 429,388 $ 293,867 Other noninterest-bearing liabilities 6,925 6,047 Total noninterest-bearing liabilities 436,313 299,914 Shareholders' equity 130,035 113,332 Total liabilities and shareholders' equity $ 1,443,461 $ 1,024,751 Net interest income $ 15,794 $ 13,665 Net interest spread 4.31 % 5.17 % Net interest margin 4.47 % 5.38 % (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, July 27, 2022 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/lO0ZkVNkM4w . For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/lO0ZkVNkM4w 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 View original content to download multimedia: https://www.prnewswire.com/news-releases/bank7-corp-announces-q2-2022-earnings-301594074.html SOURCE Bank7 Corp.

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