Bank7 Corp. Announces Q2 2024 Earnings

About this update from Bank7 Corp.

OKLAHOMA CITY , July 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 June 30, 2024 . "We are pleased to announce another record quarter of net income and EPS. Our asset sensitive 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 June 30, 2024 compared to the three months ended June 30, 2023 : Net income of $11.5 million compared to $9.7 million , an increase of 18.24% Earnings per share of $1.23 compared to $1.05 , an increase of 17.14% Total assets of $1.7 billion compared to $1.7 billion , an increase of 0.10% Total loans of $1.4 billion compared to $1.3 billion , an increase of 5.94% PPE of $15.3 million compared to $13.9 million , an increase of 9.57% Total interest income of $32.4 million compared to $30.0 million , an increase of 7.74% Three months ended June 30, 2024 compared to three months ended March 31, 2024 Net income of $11.5 million compared to $11.3 million , an increase of 2.09% Earnings per share of $1.23 compared to $1.21 , an increase of 1.65% Total assets of $1.7 billion compared to $1.8 billion , a decrease of 5.19% Total loans of $1.4 billion compared to $1.4 billion , a decrease of 1.59% PPE of $15.3 million compared to $14.9 million , an increase of 2.50% Total interest income of $32.4 million compared to $33.3 million , a decrease of 2.76% 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, 2024 , the Bank's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 11.12%, 13.04%, and 14.28%, respectively. On June 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 11.12%, 13.03%, and 14.27%, 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 June 30, 2024 March 31, 2024 June 30, 2023 Calculation of Pre-Provision Pre-Tax Earnings ("PPE") (Dollars in thousands) Net Income $ 11,524 $ 11,288 $ 9,746 Income Tax Expense 3,731 3,595 3,158 Pre-tax net income 15,255 14,883 12,904 Add back: Provision for credit losses - - 1,011 Add back: (Gain)Loss on sales/calls of AFS debt securities - - 7 Pre-provision pre-tax earnings 15,255 14,883 13,922 Bank7 Corp. Consolidated Balance Sheets Assets June 30, 2024 (unaudited) December 31 , 2023 Cash and due from banks $ 210,105 $ 181,042 Interest-bearing time deposits in other banks 12,202 17,679 Available-for-sale debt securities 66,284 169,487 Loans, net of allowance for credit losses of $17,772 and $19,691 at June 30, 2024 and December 31, 2023 , respectively 1,334,317 1,341,148 Loans held for sale, at fair value - 718 Premises and equipment, net 16,736 14,942 Nonmarketable equity securities 1,275 1,283 Core deposit intangibles 938 1,031 Goodwill 8,458 8,458 Income taxes receivable 358 - Interest receivable and other assets 32,240 35,878 Total assets $ 1,682,913 $ 1,771,666 Liabilities and Shareholders' Equity Deposits Noninterest-bearing $ 350,324 $ 482,349 Interest-bearing 1,130,993 1,109,042 Total deposits 1,481,317 1,591,391 Income taxes payable - 302 Interest payable and other liabilities 10,790 9,647 Total liabilities 1,492,107 1,601,340 Shareholders' equity Common stock, $0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,253,038 and 9,197,696 at June 30, 2024 and December 31, 2023 , respectively 93 92 Additional paid-in capital 98,570 97,417 Retained earnings 97,891 78,962 Accumulated other comprehensive loss (5,748) (6,145) Total shareholders' equity 190,806 170,326 Total liabilities and shareholders' equity $ 1,682,913 $ 1,771,666 Three Months Ended Six Months Ended June 30 , June 30 , 2024 (unaudited) 2023 2024 (unaudited) 2023 Interest Income Loans, including fees $ 28,926 $ 26,885 $ 59,043 $ 52,237 Interest-bearing time deposits in other banks 246 62 499 111 Debt securities, taxable 951 701 1,963 1,407 Debt securities, tax-exempt 71 85 144 172 Other interest and dividend income 2,242 2,309 4,074 3,495 Total interest income 32,436 30,042 65,723 57,422 Interest Expense Deposits 11,204 9,544 22,481 16,918 Total interest expense 11,204 9,544 22,481 16,918 Net Interest Income 21,232 20,498 43,242 40,504 Provision for Credit Losses - 1,011 - 1,485 Net Interest Income After Provision for Credit Losses 21,232 19,487 43,242 39,019 Noninterest Income Mortgage lending income 78 112 129 166 Loss on sales, prepayments, and calls of available-for-sale debt securities - (7) - (8) Service charges on deposit accounts 260 199 509 434 Other 2,827 490 4,536 874 Total noninterest income 3,165 794 5,174 1,466 Noninterest Expense Salaries and employee benefits 5,118 4,709 10,407 9,389 Furniture and equipment 324 251 554 500 Occupancy 613 599 1,273 1,318 Data and item processing 481 469 939 856 Accounting, marketing and legal fees 264 179 364 478 Regulatory assessments 336 339 723 734 Advertsing and public relations 83 52 229 200 Travel, lodging and entertainment 131 110 183 171 Other 1,792 669 3,606 1,381 Total noninterest expense 9,142 7,377 18,278 15,027 Income Before Taxes 15,255 12,904 30,138 25,458 Income tax expense 3,731 3,158 7,326 6,105 Net Income $ 11,524 $ 9,746 $ 22,812 $ 19,353 Earnings per common share - basic $ 1.25 $ 1.06 $ 2.47 $ 2.12 Earnings per common share - diluted 1.23 1.05 2.44 2.09 Weighted average common shares outstanding - basic 9,250,332 9,153,077 9,235,176 9,150,022 Weighted average common shares outstanding - diluted 9,367,247 9,247,101 9,343,047 9,256,450 Other Comprehensive Income Unrealized gains (losses) on securities, net of tax expense of $123 and tax benefit $0 for the three months ended June 30, 2024 and 2023, respectively; net of tax expense of $123 and tax benefit of $554 for the six months ended June 30, 2024 and 2023, respectively $ (59) $ (1,169) $ 397 $ 586 Reclassification adjustment for realized losses included in net income net of tax of $0 and $2 for the three months ended June 30, 2024 and 2023, respectively; $0 and $2 for the six months ended June 30, 2024 and 2023, respectively - 5 - 6 Other comprehensive income (loss) $ (59) $ (1,164) $ 397 $ 592 Comprehensive Income $ 11,465 $ 8,582 $ 23,209 $ 19,945 Net Interest Margin For the Six Months Ended June 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 $ 174,787 $ 4,573 5.25 % $ 154,896 $ 3,606 4.69 % Debt securities, taxable-equivalent 129,963 1,963 3.03 153,478 1,407 1.85 Debt securities, tax exempt 17,761 144 1.63 20,030 172 1.73 Loans held for sale 297 - - 56 - - Total loans(1) 1,362,339 59,043 8.69 1,277,245 52,237 8.25 Total interest-earning assets 1,685,147 65,723 7.82 1,605,705 57,422 7.21 Noninterest-earning assets 39,246 24,299 Total assets $ 1,724,393 $ 1,630,004 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 848,764 16,489 3.90 % $ 810,736 12,612 3.14 % Time deposits 256,212 5,992 4.69 239,720 4,306 3.62 Total interest-bearing deposits 1,104,976 22,481 4.08 1,050,456 16,918 3.25 Total interest-bearing liabilities 1,104,976 22,481 4.08 1,050,456 16,918 3.25 Noninterest-bearing liabilities: Noninterest-bearing deposits 426,696 414,383 Other noninterest-bearing liabilities 12,218 11,659 Total noninterest-bearing liabilities 438,914 426,042 Shareholders' equity 180,503 153,506 Total liabilities and shareholders' equity $ 1,724,393 $ 1,630,004 Net interest income $ 43,242 $ 40,504 Net interest spread 3.74 % 3.96 % Net interest margin 5.15 % 5.09 % (1) Nonaccrual loans are included in total loans Net Interest Margin For the Three Months Ended June 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 $ 173,502 $ 2,488 5.75 % $ 174,920 $ 2,371 5.44 % Debt securities, taxable-equivalent 106,457 951 3.58 153,424 701 1.83 Debt securities, tax exempt 17,252 71 1.65 19,744 85 1.73 Loans held for sale 355 - - 68 - - Total loans(1) 1,354,985 28,926 8.56 1,283,341 26,885 8.40 Total interest-earning assets 1,652,551 32,436 7.87 1,631,497 30,042 7.39 Noninterest-earning assets 38,722 25,050 Total assets $ 1,691,273 $ 1,656,547 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 851,751 8,293 3.91 % $ 817,819 6,860 3.36 % Time deposits 247,452 2,911 4.72 265,396 2,684 4.06 Total interest-bearing deposits 1,099,203 11,204 4.09 1,083,215 9,544 3.53 Total interest-bearing liabilities $ 1,099,203 11,204 4.09 $ 1,083,215 9,544 3.53 Noninterest-bearing liabilities: Noninterest-bearing deposits $ 394,010 $ 403,207 Other noninterest-bearing liabilities 12,778 12,180 Total noninterest-bearing liabilities 406,788 415,387 Shareholders' equity 185,282 157,945 Total liabilities and shareholders' equity $ 1,691,273 $ 1,656,547 Net interest income $ 21,232 $ 20,498 Net interest spread 3.78 % 3.85 % Net interest margin 5.15 % 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 second quarter results, which will be broadcast live over the Internet, on Friday, July 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/0P6wZ64ME8o . For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/0P6wZ64ME8o 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-q2-2024-earnings-302194286.html SOURCE Bank7 Corp.

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