Bank7 Corp. Announces Q3 2022 Earnings

About this update from Bank7 Corp.

OKLAHOMA CITY , Oct. 26, 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 September 30, 2022 . "We are pleased to announce another excellent quarter, as evidenced by the Company's record net income and earnings per share. In addition to our talented bankers, our position in dynamic geographic markets, strong loan growth, and asset sensitive balance sheet, continues to produce outstanding results. Moving forward, we are focused on maintaining such results through organic growth and strategic acquisitions," said Thomas L. Travis, President and CEO of the Company. Three months ended September 30, 2022 compared to three months ended June 30, 2022 Net income of $8.04 million compared to $7.02 million , an increase of 14.48% Diluted earnings per share of $0.87 compared to $0.76 , an increase of 14.47% Total assets of $1.58 billion compared to $1.49 billion , an increase of 6.28% Total loans of $1.23 billion compared to $1.15 billion , an increase of 7.01% PPE of $12.76 million compared to $9.53 million , an increase of 34.15% Total interest income of $21.69 million compared to $16.67 million , an increase of 30.10% 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, 2022 , the Bank's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 9.01%, 11.04%, and 12.10%, respectively. On September 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 9.01%, 11.03%, and 12.09%, respectively. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators. Bank7 Corp. Consolidated Balance Sheets September 30 , 2022(unaudited) December 31 , 2021 Assets Cash and due from banks $ 147,241 $ 195,359 Federal funds sold - 9,493 Cash and cash equivalents 147,241 204,852 Interest-bearing time deposits in other banks 1,494 3,237 Available-for-sale debt securities 174,534 84,808 Loans, net of allowance for loan losses of $13,153 and $10,316 at September 30, 2022 and December 31, 2021 , respectively 1,219,998 1,018,085 Loans held for sale, at fair value 204 464 Premises and equipment, net 13,352 17,257 Nonmarketable equity securities 1,193 1,202 Core deposit intangibles 1,412 1,643 Goodwill 8,068 8,479 Interest receivable and other assets 13,456 10,522 Total assets $ 1,580,952 $ 1,350,549 Liabilities and Shareholders' Equity Deposits Noninterest-bearing $ 497,768 $ 366,705 Interest-bearing 939,568 850,766 Total deposits 1,437,336 1,217,471 Income taxes payable 446 - Interest payable and other liabilities 7,351 5,670 Total liabilities 1,445,133 1,223,141 Shareholders' equity Common stock, $0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,115,739 and 9,071,417 at 91 91 September 30, 2022 and December 31, 2021 respectively Additional paid-in capital 95,054 94,024 Retained earnings 51,123 33,149 Accumulated other comprehensive income (loss) (10,449) 144 Total shareholders' equity 135,819 127,408 Total liabilities and shareholders' equity $ 1,580,952 $ 1,350,549 Three months ended September 30 , (unaudited) Nine months ended September 30 , (unaudited) 2022 2021 2022 2021 Interest Income Loans, including fees $ 20,466 $ 13,927 $ 50,597 $ 41,377 Interest-bearing time deposits in other banks 10 35 39 141 Debt securities, taxable 690 - 1,625 - Debt securities, tax-exempt 90 - 273 - Other interest and dividend income 435 46 754 114 Total interest income 21,691 14,008 53,288 41,632 Interest Expense Deposits 2,646 729 4,241 2,376 Total interest expense 2,646 729 4,241 2,376 Net Interest Income 19,045 13,279 49,047 39,256 Provision for Loan Losses 2,348 750 2,843 3,325 Net Interest Income After Provision for Loan Losses 16,697 12,529 46,204 35,931 Noninterest Income Secondary market income 134 161 395 253 Gain (Loss) on sales, maturities, prepayments and calls of available-for-sale debt securities (10) - (127) - Service charges on deposit accounts 210 141 678 380 Other 506 275 1,261 860 Total noninterest income 840 577 2,207 1,493 Noninterest Expense Salaries and employee benefits 3,996 2,946 12,148 8,685 Furniture and equipment 390 218 1,134 651 Occupancy 614 461 1,736 1,391 Data and item processing 522 292 1,468 857 Accounting, marketing and legal fees 340 150 782 447 Regulatory assessments 551 162 973 464 Advertsing and public relations 83 76 314 181 Travel, lodging and entertainment 94 102 216 309 Other 543 372 1,745 1,213 Total noninterest expense 7,133 4,779 20,516 14,198 Income Before Taxes 10,404 8,327 27,895 23,226 Income tax expense 2,363 2,063 6,646 5,753 Net Income $ 8,041 $ 6,264 $ 21,249 $ 17,473 Earnings per common share - basic $ 0.88 $ 0.69 $ 2.34 $ 1.93 Earnings per common share - diluted 0.87 0.69 2.31 1.92 Weighted average common shares outstanding - basic 9,100,789 9,052,718 9,095,724 9,051,112 Weighted average common shares outstanding - diluted 9,208,850 9,105,255 9,194,586 9,078,671 Other Comprehensive Income (Loss) Unrealized losses on securities, net of tax benefit of $1.7 million and $0 for the three months ended September 30, 2022 and 2021, respectively; $3.2 million and $0 for the nine months ended September 30, 2022 and 2021, respectively $ (2,674) $ - $ (10,691) $ - Reclassification adjustment for realized (gain)loss included in net income, net of tax of $2 and $0 for the three months ended September 30, 2022 and 2021, respectively; $29 and $0 for the nine months ended September 30, 2022 and 2021, respectively 8 - 98 - Other comprehensive loss, net of tax benefit of $1.7 million and $0 for the three months ended September 30, 2022 and 2021, respectively; $3.2 million and $0 for the nine months ended September 30, 2022 and 2021, respectively $ (2,666) $ - $ (10,593) $ - Comprehensive Income (Loss) $ 5,375 $ 6,264 $ 10,656 $ 17,473 Net Interest Margin For the Nine Months Ended September 30 , 2022 (unaudited) 2021 AverageBalance InterestIncome/Expense AverageYield/Rate AverageBalance InterestIncome/Expense AverageYield/Rate (Dollars in thousands) Interest-Earning Assets: Short-term investments $ 139,133 $ 793 0.76 % $ 124,801 $ 236 0.25 % Investment securities, taxable 150,180 1,625 1.45 1,182 19 2.15 Debt securities, tax exempt 14,820 273 2.46 - - - Loans held for sale 686 - - 501 - - Total loans(1) 1,103,114 50,597 6.13 887,353 41,377 6.23 Total interest-earning assets 1,407,933 53,288 5.06 1,013,837 41,632 5.49 Noninterest-earning assets 24,069 5,927 Total assets $ 1,432,002 $ 1,019,764 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 699,670 3,351 0.64 % $ 410,299 1,024 0.33 % Time deposits 168,608 890 0.71 212,706 1,352 0.85 Total interest-bearing deposits 868,278 4,241 0.65 623,005 2,376 0.51 Total interest-bearing liabilities 868,278 4,241 0.65 623,005 2,376 0.51 Noninterest-bearing liabilities: Noninterest-bearing deposits 424,720 277,308 Other noninterest-bearing liabilities 7,128 5,634 Total noninterest-bearing liabilities 431,848 282,942 Shareholders' equity 131,876 113,817 Total liabilities and shareholders' equity $ 1,432,002 $ 1,019,764 Net interest income $ 49,047 $ 39,256 Net interest spread 4.41 % 4.98 % Net interest margin 4.66 % 5.18 % (1) Nonaccrual loans are included in total loans For the Three Months Ended September 30 , 2022 (unaudited) 2021 AverageBalance InterestIncome/Expense AverageYield/Rate AverageBalance InterestIncome/Expense AverageYield/Rate (Dollars in thousands) Interest-Earning Assets: Short-term investments $ 99,751 $ 445 1.77 % $ 120,078 $ 79 0.26 % Debt securities, taxable-equivalent 163,699 690 1.67 1,187 2 0.67 Debt securities, tax exempt 21,811 90 1.64 - - - Loans held for sale 1,281 - - 610 - - Total loans(1) 1,213,080 20,466 6.69 924,391 13,927 5.98 Total interest-earning assets 1,499,622 21,691 5.74 1,046,266 14,008 5.31 Noninterest-earning assets 23,197 5,607 Total assets $ 1,522,819 $ 1,051,873 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 761,927 2,338 1.22 % $ 401,843 332 0.33 % Time deposits 152,910 308 0.80 220,189 397 0.72 Total interest-bearing deposits 914,837 2,646 1.15 622,032 729 0.46 Total interest-bearing liabilities $ 914,837 2,646 1.15 $ 622,032 729 0.46 Noninterest-bearing liabilities: Noninterest-bearing deposits $ 463,882 $ 304,063 Other noninterest-bearing liabilities 8,132 6,633 Total noninterest-bearing liabilities 472,014 310,696 Shareholders' equity 135,968 119,145 Total liabilities and shareholders' equity $ 1,522,819 $ 1,051,873 Net interest income $ 19,045 $ 13,279 Net interest spread 4.99 % 4.85 % Net interest margin 5.04 % 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 first quarter results, which will be broadcast live over the Internet, on Wednesday, October 26, 2022 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/N4zQYGV2vjL . For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/N4zQYGV2vjL 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-q3-2022-earnings-301658960.html SOURCE Bank7 Corp.

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