Bank7 Corp. Announces Q2 2023 Earnings

About this update from Bank7 Corp.

OKLAHOMA CITY , July 20, 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 June 30, 2023 . "In these uncertain times, it is comforting to report that our long-term and broad based deposit relationships remain as loyal customers while our debt-free and liquid balance sheet continues to be a source of strength and stability. These strengths and our disciplined approach to risk management and cost control once-again propelled us to both record profits and EPS. We achieved these milestones in spite of NIM pressure, which was partially due to our decision to carry more liquidity. We continue to benefit from strong asset quality and remain committed to our established fundamentals as we move through the rest of the year," said Thomas L. Travis, President and CEO of the Company. For the three months ended June 30, 2023 compared to the three months ended June 30, 2022 : Net income of $9.7 million compared to $7.0 million , an increase of 38.75% Earnings per share of $1.05 compared to $0.76 , an increase of 38.16% Total assets of $1.7 billion compared to $1.5 billion , an increase of 13.03% Total loans of $1.3 billion compared to $1.2 billion , an increase of 10.37% PPE of $13.9 million compared to $9.5 million , an increase of 46.35% Total interest income of $30.0 million compared to $16.7 million , an increase of 80.19% Three months ended June 30, 2023 compared to three months ended March 31, 2023 Net income of $9.7 million compared to $9.6 million , an increase of 1.45% Earnings per share of $1.05 compared to $1.04 , an increase of 0.96% PPE of $13.9 million compared to $13.0 million , an increase of 6.85% Total interest income of $30.0 million compared to $27.4 million , an increase of 9.72% 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, 2023 , the Bank's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 9.71%, 11.89%, and 13.10%, respectively. On June 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 9.71%, 11.88%, and 13.09%, 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 June 30, 2023 December 31 , (unaudited) 2022 Cash and due from banks $ 196,456 $ 109,115 Interest-bearing time deposits in other banks 10,455 5,474 Available-for-sale debt securities 169,923 173,165 Loans, net of allowance for credit losses of $16,377 and $14,734 at June 30, 2023 and December 31, 2022 , respectively 1,259,905 1,255,722 Loans held for sale, at fair value 408 - Premises and equipment, net 14,833 13,106 Nonmarketable equity securities 1,238 1,209 Core deposit intangibles 1,184 1,336 Goodwill 8,458 8,603 Interest receivable and other assets 18,445 16,439 Total assets $ 1,681,305 $ 1,584,169 Liabilities and Shareholders' Equity Deposits Noninterest-bearing $ 397,588 $ 439,409 Interest-bearing 1,110,637 989,891 Total deposits 1,508,225 1,429,300 Income taxes payable 363 1,054 Interest payable and other liabilities 10,937 9,715 Total liabilities 1,519,525 1,440,069 Shareholders' equity Common stock, $0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,154,934 and 9,131,973 at 92 91 June 30, 2023 and December 31, 2022 respectively Additional paid-in capital 96,498 95,263 Retained earnings 73,901 58,049 Accumulated other comprehensive income (loss) (8,711) (9,303) Total shareholders' equity 161,780 144,100 Total liabilities and shareholders' equity $ 1,681,305 $ 1,584,169 Unaudited as of Three Months Ended Six Months Ended June 30 , June 30 , 2023 2022 2023 2022 Interest Income Loans, including fees $ 26,885 $ 15,754 $ 52,237 $ 30,131 Interest-bearing time deposits in other banks 62 13 111 29 Debt securities, taxable 701 571 1,407 935 Debt securities, tax-exempt 85 85 172 183 Other interest and dividend income 2,309 249 3,495 319 Total interest income 30,042 16,672 57,422 31,597 Interest Expense Deposits 9,544 878 16,918 1,595 Total interest expense 9,544 878 16,918 1,595 Net Interest Income 20,498 15,794 40,504 30,002 Provision for Credit Losses 1,011 219 1,485 495 Net Interest Income After Provision for Credit Losses 19,487 15,575 39,019 29,507 Noninterest Income Secondary market income 112 95 166 261 Gain (Loss) on sales, prepayments, and calls of available-for-sale debt securities (7) 10 (8) (117) Service charges on deposit accounts 199 219 434 468 Other 490 368 874 755 Total noninterest income 794 692 1,466 1,367 Noninterest Expense Salaries and employee benefits 4,709 4,126 9,389 8,152 Furniture and equipment 251 386 500 744 Occupancy 599 571 1,318 1,122 Data and item processing 469 559 856 946 Accounting, marketing and legal fees 179 209 478 442 Regulatory assessments 339 226 734 422 Advertsing and public relations 52 121 200 231 Travel, lodging and entertainment 110 74 171 122 Other 669 691 1,381 1,202 Total noninterest expense 7,377 6,963 15,027 13,383 Income Before Taxes 12,904 9,304 25,458 17,491 Income tax expense 3,158 2,280 6,105 4,283 Net Income $ 9,746 $ 7,024 $ 19,353 $ 13,208 Earnings per common share - basic $ 1.06 $ 0.77 $ 2.12 $ 1.45 Earnings per common share - diluted 1.05 0.76 2.09 1.44 Weighted average common shares outstanding - basic 9,153,077 9,097,280 9,150,022 9,093,150 Weighted average common shares outstanding - diluted 9,247,101 9,194,923 9,256,450 9,187,637 Other Comprehensive Income (Loss) Unrealized gains(losses) on securities, net of tax benefit of $0 and $1.5 million for the three months ended June 30, 2023 and 2022, respectively; $0 and $0 for the six months ended June 30, 2023 and 2022, respectively $ (1,169) $ (3,778) $ 586 $ (8,017) Reclassification adjustment for realized (gain)loss included in net income net of tax of $2 and $0 for the three months ended June 30, 2023 and 2022, respectively; $2 and $17 for the six months ended June 30, 2023 and 2022, respectively 5 (10) 6 90 Other comprehensive income(loss) $ (1,164) $ (3,788) $ 592 $ (7,927) Comprehensive Income $ 8,582 $ 3,236 $ 19,945 $ 5,281 Net Interest Margin For the Six Months Ended June 30 , 2023(unaudited) 2022 AverageBalance InterestIncome/Expense AverageYield/Rate AverageBalance InterestIncome/Expense AverageYield/Rate (Dollars in thousands) Interest-Earning Assets: Short-term investments $ 154,896 $ 3,606 4.69 % $ 159,157 $ 348 0.44 % Investment securities, taxable 153,478 1,407 1.85 132,086 935 1.43 Debt securities, tax exempt 20,030 172 1.73 22,487 183 1.64 Loans held for sale 56 - - 383 - - Total loans(1) 1,277,245 52,237 8.25 1,047,220 30,131 5.80 Total interest-earning assets 1,605,705 57,422 7.21 1,361,333 31,597 4.68 Noninterest-earning assets 24,299 24,506 Total assets $ 1,630,004 $ 1,385,839 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 810,736 12,612 3.14 % $ 667,159 1,012 0.31 % Time deposits 239,720 4,306 3.62 176,587 583 0.67 Total interest-bearing deposits 1,050,456 16,918 3.25 843,746 1,595 0.38 Total interest-bearing liabilities 1,050,456 16,918 3.25 843,746 1,595 0.38 Noninterest-bearing liabilities: Noninterest-bearing deposits 414,383 405,674 Other noninterest-bearing liabilities 11,659 6,615 Total noninterest-bearing liabilities 426,042 412,289 Shareholders' equity 153,506 129,804 Total liabilities and shareholders' equity $ 1,630,004 $ 1,385,839 Net interest income $ 40,504 $ 30,002 Net interest spread 3.96 % 4.30 % Net interest margin 5.09 % 4.44 % (1) Nonaccrual loans are included in total loans For the Three Months Ended June 30 , 2023(unaudited) 2022 AverageBalance InterestIncome/Expense AverageYield/Rate AverageBalance InterestIncome/Expense AverageYield/Rate (Dollars in thousands) Interest-Earning Assets: Short-term investments $ 174,920 $ 2,371 5.44 % $ 130,961 $ 262 0.81 % Debt securities, taxable-equivalent 153,424 701 1.83 174,583 571 1.31 Debt securities, tax exempt 19,744 85 1.73 22,244 85 1.53 Loans held for sale 68 - - 279 - - Total loans(1) 1,283,341 26,885 8.40 1,090,053 15,754 5.80 Total interest-earning assets 1,631,497 30,042 7.39 1,418,120 16,672 4.72 Noninterest-earning assets 25,050 25,341 Total assets $ 1,656,547 $ 1,443,461 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 817,819 6,860 3.36 % $ 693,619 555 0.32 % Time deposits 265,396 2,684 4.06 183,494 323 0.71 Total interest-bearing deposits 1,083,215 9,544 3.53 877,113 878 0.40 Total interest-bearing liabilities $ 1,083,215 9,544 3.53 $ 877,113 878 0.40 Noninterest-bearing liabilities: Noninterest-bearing deposits $ 403,207 $ 429,388 Other noninterest-bearing liabilities 12,180 6,925 Total noninterest-bearing liabilities 415,387 436,313 Shareholders' equity 157,945 130,035 Total liabilities and shareholders' equity $ 1,656,547 $ 1,443,461 Net interest income $ 20,498 $ 15,794 Net interest spread 3.85 % 4.32 % Net interest margin 5.04 % 4.47 % (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 second quarter results, which will be broadcast live over the Internet, on Thursday, July 20, 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/pODMrqAr9XJ . For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/pODMrqAr9XJ 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-q2-2023-earnings-301881786.html SOURCE Bank7 Corp.

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