Bank7 Corp. Announces Q3 2023 Earnings

About this update from Bank7 Corp.

OKLAHOMA CITY , Oct. 26, 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 September 30, 2023 . "We are pleased to report another quarter of record PPE and record interest income. Our success continues to be driven by our long-term and broad-based deposit relationships, our debt-free and liquid balance sheet, and our disciplined approach to cost controls. With the exception of one large credit, we continue to benefit from strong asset quality and remain confident that the overall portfolio is indicative of our historical low loan loss results," said Thomas L. Travis, President and CEO of the Company. For the three months ended September 30, 2023 compared to the three months ended September 30, 2022 : Net Income of $7.9 million compared to $8.0 million , a decrease of 2.3% Earnings per share of $0.85 compared to $0.87 , a decrease of 2.7% Total assets of $1.8 billion compared to $1.6 billion , an increase of 12.11% Total loans of $1.4 billion compared to $1.2 billion , an increase of 12.94% PPE of $14.4 million compared to $12.8 million , an increase of 12.62% Total interest income of $31.7 million compared to $21.7 million , an increase of 46.24% Nine months ended September 30, 2023 compared to nine months ended September 30, 2022 Net Income of $27.2 million compared to $21.2 million , an increase of 28.03% Earnings per share of $2.94 compared to $2.31 , an increase of 27.11% Total assets of $1.8 billion compared to $1.6 billion , an increase of 12.11% Total loans of $1.4 billion compared to $1.2 billion , an increase of 12.94% PPE of $41.3 million compared to $30.9 million , an increase of 33.88% Total interest income of $89.1 million compared to $53.3 million , an increase of 67.29% 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, 2023 , the Bank's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 9.75%, 11.39%, and 12.64%, respectively. On September 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 9.76%, 11.39%, and 12.64%, 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 September 30 ,2023(unaudited) December 31 , 2022 Cash and due from banks $ 169,490 $ 109,115 Interest-bearing time deposits in other banks 17,182 5,474 Available-for-sale debt securities 167,138 173,165 Loans, net of allowance for credit losses of $20,649 and $14,734 at September 30, 2023 and December 31, 2022 , respectively 1,372,128 1,255,722 Loans held for sale, at fair value 1,143 - Premises and equipment, net 14,963 13,106 Nonmarketable equity securities 1,251 1,209 Core deposit intangibles 1,107 1,336 Goodwill 8,458 8,603 Interest receivable and other assets 19,539 16,439 Total assets $ 1,772,399 $ 1,584,169 Liabilities and Shareholders' Equity Deposits Noninterest-bearing $ 480,827 $ 439,409 Interest-bearing 1,112,745 989,891 Total deposits 1,593,572 1,429,300 Income taxes payable 419 1,054 Interest payable and other liabilities 10,501 9,715 Total liabilities 1,604,492 1,440,069 Shareholders' equity Common stock, $0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,184,975 and 9,131,973 at 92 91 September 30, 2023 and December 31, 2022 respectively Additional paid-in capital 97,068 95,263 Retained earnings 79,825 58,049 Accumulated other comprehensive income (loss) (9,078) (9,303) Total shareholders' equity 167,907 144,100 Total liabilities and shareholders' equity $ 1,772,399 $ 1,584,169 Unaudited as of Three Months Ended September 30 , Nine Months Ended September 30 , 2023 2022 2023 2022 Interest Income Loans, including fees $ 28,880 $ 20,466 $ 81,117 $ 50,597 Interest-bearing time deposits in other banks 159 10 270 39 Debt securities, taxable 699 690 2,106 1,625 Debt securities, tax-exempt 81 90 253 273 Other interest and dividend income 1,903 435 5,398 754 Total interest income 31,722 21,691 89,144 53,288 Interest Expense Deposits 10,976 2,646 27,894 4,241 Total interest expense 10,976 2,646 27,894 4,241 Net Interest Income 20,746 19,045 61,250 49,047 Provision for Credit Losses 4,159 2,348 5,645 2,843 Net Interest Income After Provision for Credit Losses 16,587 16,697 55,605 46,204 Noninterest Income Secondary market income 6 134 172 395 Total noninterest income (7) (10) (15) (127) Service charges on deposit accounts 213 210 647 678 Other 795 506 1,668 1,261 Total noninterest income 1,007 840 2,472 2,207 Noninterest Expense Salaries and employee benefits 4,910 3,996 14,299 12,148 Furniture and equipment 254 390 755 1,134 Occupancy 662 614 1,980 1,736 Data and item processing 424 522 1,280 1,468 Accounting, marketing and legal fees 14 340 491 782 Regulatory assessments 279 551 1,013 973 Advertsing and public relations 74 83 273 314 Travel, lodging and entertainment 85 94 255 216 Other 688 543 2,068 1,745 Total noninterest expense 7,390 7,133 22,414 20,516 Income Before Taxes 10,204 10,404 35,663 27,895 Income tax expense 2,351 2,363 8,457 6,646 Net Income $ 7,853 $ 8,041 $ 27,206 $ 21,249 Earnings per common share - basic $ 0.86 $ 0.88 $ 2.97 $ 2.34 Earnings per common share - diluted 0.85 0.87 2.94 2.31 Weighted average common shares outstanding - basic 9,158,027 9,100,789 9,152,788 9,095,724 Weighted average common shares outstanding - diluted 9,273,595 9,209,754 9,262,003 9,194,928 Other Comprehensive Income (Loss) Unrealized gains(losses) on securities, net of (tax)tax benefit of $485 and $1.7 million for the three months ended September 30, 2023 and 2022, respectively; ( $69 ) and $3.2 million for the nine months ended September 30, 2023 and 2022, respectively $ (372) $ (2,674) $ 214 $ (10,691) Reclassification adjustment for realized loss included in net income net of tax of $2 and $2 for the three months ended September 30, 2023 and 2022, respectively; $4 and $29 for the nine months ended September 30, 2023 and 2022, respectively 5 8 11 98 Other comprehensive income(loss) $ (367) $ (2,666) $ 225 $ (10,593) Comprehensive Income $ 7,486 $ 5,375 $ 27,431 $ 10,656 Net Interest Margin For the Nine Months Ended September 30 , 2023 (unaudited) 2022 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 $ 162,432 $ 5,668 4.67 % $ 139,133 $ 793 0.76 % Debt securities, taxable-equivalent 152,702 2,106 1.84 142,913 1,625 1.52 Debt securities, tax exempt 19,828 253 1.71 22,087 273 1.65 Loans held for sale 115 - - 686 - - Total loans(1) 1,299,754 81,117 8.34 1,103,114 50,597 6.13 Total interest-earning assets 1,634,831 89,144 7.29 1,407,933 53,288 5.06 Noninterest-earning assets 22,560 24,069 Total assets $ 1,657,391 $ 1,432,002 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 823,331 20,346 3.35 % $ 699,670 3,351 0.64 % Time deposits 292,235 7,548 3.92 168,608 890 0.71 Total interest-bearing deposits 1,115,566 27,894 3.48 868,278 4,241 0.65 Total interest-bearing liabilities 1,115,566 27,894 3.48 868,278 4,241 0.65 Noninterest-bearing liabilities: Noninterest-bearing deposits 422,691 424,720 Other noninterest-bearing liabilities 11,649 7,128 Total noninterest-bearing liabilities 434,340 431,848 Shareholders' equity 107,485 131,876 Total liabilities and shareholders' equity $ 1,657,391 $ 1,432,002 Net interest income $ 61,250 $ 49,047 Net interest spread 3.81 % 4.41 % Net interest margin 5.01 % 4.66 % (1) Nonaccrual loans are included in total loans Net Interest Margin For the Three Months Ended September 30 , 2023 (unaudited) 2022 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 $ 176,589 $ 2,062 4.63 % $ 99,751 $ 445 1.77 % Debt securities, taxable-equivalent 151,174 699 1.83 163,699 690 1.67 Debt securities, tax exempt 19,430 81 1.65 21,811 90 1.64 Loans held for sale 232 - - 1,281 - - Total loans(1) 1,344,038 28,880 8.52 1,213,080 20,466 6.69 Total interest-earning assets 1,691,463 31,722 7.44 1,499,622 21,691 5.74 Noninterest-earning assets 23,407 23,197 Total assets $ 1,714,870 $ 1,522,819 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 823,331 7,733 3.73 % $ 761,927 2,338 1.22 % Time deposits 292,235 3,243 4.40 152,910 308 0.80 Total interest-bearing deposits 1,115,566 10,976 3.90 914,837 2,646 1.15 Total interest-bearing liabilities $ 1,115,566 10,976 3.90 $ 914,837 2,646 1.15 Noninterest-bearing liabilities: Noninterest-bearing deposits $ 422,691 $ 463,882 Other noninterest-bearing liabilities 11,649 8,132 Total noninterest-bearing liabilities 434,340 472,014 Shareholders' equity 164,964 135,968 Total liabilities and shareholders' equity $ 1,714,870 $ 1,522,819 Net interest income $ 20,746 $ 19,045 Net interest spread 3.54 % 4.60 % Net interest margin 4.87 % 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 third quarter results, which will be broadcast live over the Internet, on Thursday, October 26, 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/o0Oqylxyz5k . For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/o0Oqylxyz5k 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-q3-2023-earnings-301968262.html SOURCE Bank7 Corp.

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