Bank7 Corp. Announces Q4 2023 and Full Year Earnings

About this update from Bank7 Corp.

OKLAHOMA CITY , Jan. 29, 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 and year ended December 31, 2023 . "We are pleased to report another year of record PPE. 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 December 31, 2023 compared to the three months ended December 31, 2022 : Net income of $1.1 million compared to $8.4 million , a decrease of 87.24% Earnings per share of $0.12 compared to $0.91 , a decrease of 87.36% Total assets of $1.8 billion compared to $1.6 billion , an increase of 11.84% Total loans of $1.4 billion compared to $1.3 billion , an increase of 7.11% PPE of $17.1 million compared to $13.0 million , an increase of 31.41% Total interest income of $32.4 million compared to $25.5 million , an increase of 27.25% For the year ended December 31, 2023 compared to year ended December 31, 2022 Net income of $28.3 million compared to $29.6 million , a decrease of 4.60% Earnings per share of $3.05 compared to $3.22 , a decrease of 5.22% PPE of $58.4 million compared to $43.9 million , an increase of 33.14% Total interest income of $121.5 million compared to $78.7 million , an increase of 54.34% 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 December 31, 2023 , the Bank's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 9.54%, 11.50%, and 12.75%, respectively. On December 31, 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 9.54%, 11.49%, and 12.74%, respectively. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators. Non-GAAP metric pre-provision pre-tax earnings ("PPE") is calculated as net income, add back: income tax expense, provision for credit losses, and loss on sales, prepayments, and calls of available-for-sale debt securities. Bank7 Corp. Consolidated Balance Sheets December 31 , Assets 2023 (unaudited) 2022 Cash and due from banks $ 181,042 $ 109,115 Interest-bearing time deposits in other banks 17,679 5,474 Available-for-sale debt securities 169,487 173,165 Loans, net of allowance for credit losses of $19,691 and $14,734 at December 31, 2023 and December 31, 2022 , respectively 1,341,148 1,255,722 Loans held for sale, at fair value 718 - Premises and equipment, net 14,942 13,106 Nonmarketable equity securities 1,283 1,209 Core deposit intangibles 1,031 1,336 Goodwill 8,458 8,603 Interest receivable and other assets 35,878 16,439 Total assets $ 1,771,666 $ 1,584,169 Liabilities and Shareholders' Equity Deposits Noninterest-bearing $ 482,349 $ 441,509 Interest-bearing 1,109,042 989,891 Total deposits 1,591,391 1,431,400 Income taxes payable 302 1,054 Interest payable and other liabilities 9,647 7,615 Total liabilities 1,601,340 1,440,069 Shareholders' equity Common stock, $0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,197,696 and 9,131,973 at 92 91 December 31, 2023 and December 31, 2022 respectively Additional paid-in capital 97,415 95,263 Retained earnings 78,964 58,049 Accumulated other comprehensive income (loss) (6,145) (9,303) Total shareholders' equity 170,326 144,100 Total liabilities and shareholders' equity $ 1,771,666 $ 1,584,169 Three Months Ended Twelve Months Ended December 31 , December 31 , 2023 (unaudited) 2022 2023 (unaudited) 2022 Interest Income Loans, including fees $ 28,727 $ 23,806 $ 109,843 $ 74,403 Interest-bearing time deposits in other banks 248 7 519 46 Debt securities, taxable 685 688 2,791 2,313 Debt securities, tax-exempt 77 87 330 360 Other interest and dividend income 2,664 874 8,061 1,627 Total interest income 32,401 25,462 121,544 78,749 Interest Expense Deposits 11,104 5,081 38,998 9,322 Total interest expense 11,104 5,081 38,998 9,322 Net Interest Income 21,297 20,381 82,546 69,427 Provision for Credit Losses 15,500 1,625 21,145 4,468 Net Interest Income After Provision for Credit Losses 5,797 18,756 61,401 64,959 Noninterest Income Mortgage lending income 159 91 331 486 Loss on sales, prepayments, and calls of available-for-sale debt securities (1) - (16) (127) Service charges on deposit accounts 222 222 869 900 Other 6,389 419 8,058 1,680 Total noninterest income 6,769 732 9,242 2,939 Noninterest Expense Salaries and employee benefits 3,086 4,892 17,385 17,040 Furniture and equipment 241 334 995 1,468 Occupancy 708 593 2,689 2,329 Data and item processing 450 600 1,730 2,068 Accounting, marketing and legal fees 51 203 543 984 Regulatory assessments 524 371 1,537 1,344 Advertsing and public relations 154 164 427 477 Travel, lodging and entertainment 118 147 374 363 Other 5,673 825 7,740 2,568 Total noninterest expense 11,005 8,129 33,420 28,641 Income Before Taxes 1,561 11,359 37,223 39,257 Income tax expense 491 2,973 8,948 9,619 Net Income $ 1,070 $ 8,386 $ 28,275 $ 29,638 Earnings per common share - basic $ 0.12 $ 0.92 $ 3.09 $ 3.26 Earnings per common share - diluted 0.12 0.91 3.05 3.22 Weighted average common shares outstanding - basic 9,188,888 9,118,728 9,161,565 9,101,523 Weighted average common shares outstanding - diluted 9,274,960 9,232,333 9,264,307 9,204,716 Other Comprehensive Income (Loss) Unrealized gains(losses) on securities, net of (tax expense)tax benefit of ( $1.9 million ), $2.8 million , and $0 for the years ended December 31, 2023 , 2022, and 2021, respectively $ 2,933 $ 1,146 $ 3,146 $ (9,543) Reclassification adjustment for realized loss included in net income net of tax of $4 , $31 , and $0 for the years ended 2023, 2022, and 2021, respectively 1 - 12 96 Other comprehensive income(loss) $ 2,934 $ 1,146 $ 3,158 $ (9,447) Comprehensive Income $ 4,004 $ 9,532 $ 31,433 $ 20,191 Net Interest Margin For the Twelve Months Ended 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 $ 174,600 $ 8,580 4.91 % $ 129,624 $ 1,673 1.29 % Debt securities, taxable-equivalent 152,094 2,791 1.84 145,915 2,313 1.59 Debt securities, tax exempt 19,430 330 1.70 21,635 360 1.66 Loans held for sale 158 - - 586 - - Total loans(1) 1,315,578 109,843 8.35 1,143,380 74,403 6.51 Total interest-earning assets 1,661,860 121,544 7.31 1,441,140 78,749 5.46 Noninterest-earning assets 21,236 23,532 Total assets $ 1,683,096 $ 1,464,672 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 825,169 28,582 3.46 % $ 724,617 7,842 1.08 % Time deposits 256,672 10,416 4.06 165,735 1,480 0.89 Total interest-bearing deposits 1,081,841 38,998 3.60 890,352 9,322 1.05 Total interest-bearing liabilities 1,081,841 38,998 3.60 890,352 9,322 1.05 Noninterest-bearing liabilities: Noninterest-bearing deposits 433,603 432,901 Other noninterest-bearing liabilities 11,101 7,520 Total noninterest-bearing liabilities 444,704 440,421 Shareholders' equity 156,551 133,899 Total liabilities and shareholders' equity $ 1,683,096 $ 1,464,672 Net interest income $ 82,546 $ 69,427 Net interest spread 3.71 % 4.42 % Net interest margin 4.97 % 4.82 % (1) Nonaccrual loans are included in total loans Net Interest Margin For the Three Months Ended 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 $ 210,710 $ 2,912 5.48 % $ 101,427 $ 881 3.45 % Debt securities, taxable-equivalent 150,291 685 1.81 154,869 688 0.76 Debt securities, tax exempt 18,250 77 1.67 20,247 87 1.70 Loans held for sale 284 - - 291 - - Total loans(1) 1,362,533 28,727 8.36 1,262,864 23,806 7.48 Total interest-earning assets 1,742,068 32,401 7.38 1,539,698 25,462 6.56 Noninterest-earning assets 17,308 21,937 Total assets $ 1,759,376 $ 1,561,635 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 848,990 8,237 3.85 % $ 798,073 4,491 2.23 % Time deposits 254,460 2,867 4.47 157,211 590 1.49 Total interest-bearing deposits 1,103,450 11,104 3.99 955,284 5,081 2.11 Total interest-bearing liabilities $ 1,103,450 11,104 3.99 $ 955,284 5,081 2.11 Noninterest-bearing liabilities: Noninterest-bearing deposits $ 485,312 $ 457,753 Other noninterest-bearing liabilities 12,895 8,683 Total noninterest-bearing liabilities 498,207 466,436 Shareholders' equity 157,719 139,915 Total liabilities and shareholders' equity $ 1,759,376 $ 1,561,635 Net interest income $ 21,297 $ 20,381 Net interest spread 3.39 % 4.45 % Net interest margin 4.85 % 5.25 % (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 fourth quarter and full year results, which will be broadcast live over the Internet, on Monday, January 29, 2024 at 11:00 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/NXrREy72GnW . For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/NXrREy72GnW 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-q4-2023-and-full-year-earnings-302046211.html SOURCE Bank7 Corp.

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