Bank7 Corp. Announces Q1 2024 Earnings

OKLAHOMA CITY, April 12, 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 March 31, 2024.  “We are pleased with the strength of our core earnings, as evidenced by our pre-tax, pre-provision earnings (PPE).  The Company’s continued ability to exceed historical PPE is a function of our position in dynamic geographic markets, our long-term and broad-based deposit relationships, our debt-free and liquid balance sheet, and our disciplined approach to cost controls. Further, the Company’s credit quality remains a point of strength with minimal exposure to office and retail commercial real estate,” said Thomas L. Travis, President and CEO of the Company.” 

For the three months ended March 31, 2024 compared to the three months ended March 31, 2023:

Net income of $11.3 million compared to $9.6 million, an increase of 17.50%
Earnings per share of $1.21 compared to $1.04, an increase of 16.35%
Total assets of $1.8 billion compared to $1.7 billion, an increase of 6.89%
Total loans of $1.4 billion compared to $1.3 billion, an increase of 7.39%
PPE of $14.9 million compared to $13.0 million, an increase of 14.22%
Total interest income of $33.3 million compared to $27.4 million, an increase of 21.57%

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 March 31, 2024, the Bank’s Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 10.10%, 12.11%, and 13.36%, respectively.  On March 31, 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 10.11%, 12.11%, and 13.36%, 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

Mar 31, 2024

Mar 31, 2023

Calculation of Pre-Provision Pre-Tax Earnings (“PPE”)

(Dollars in thousands)

Net Income

$                   3,595

$                   2,947

Income Tax Expense

14,883

12,554

Pre-tax net income

14,883

12,554

Add back: Provision for credit losses

1

Add back: (Gain)Loss on sales/calls of AFS debt securities

14,883

13,030

Pre-provision pre-tax earnings

14,883

13,030

Bank7 Corp.

Consolidated Balance Sheets

Assets

March 31, 2024
(unaudited)

December 31,
2023

Cash and due from banks

$               193,218

$               181,042

Interest-bearing time deposits in other banks

17,181

17,679

Available-for-sale debt securities

151,872

169,487

Loans, net of allowance for credit losses of $19,696 and

$19,691 at March 31, 2024 and December 31, 2023, respectively

1,354,195

1,341,148

Loans held for sale, at fair value

718

Premises and equipment, net

15,376

14,942

Nonmarketable equity securities

1,278

1,283

Core deposit intangibles

970

1,031

Goodwill

8,458

8,458

Interest receivable and other assets

32,435

35,878

Total assets

$            1,774,983

$            1,771,666

Liabilities and Shareholders’ Equity

Deposits

Noninterest-bearing

$               452,326

$               482,349

Interest-bearing

1,127,846

1,109,042

Total deposits

1,580,172

1,591,391

Income taxes payable

3,946

302

Interest payable and other liabilities

10,483

9,647

Total liabilities

1,594,601

1,601,340

Shareholders’ equity

Common stock, $0.01 par value; 50,000,000 shares authorized; shares 

issued and outstanding: 9,238,206 and 9,197,696 at March 31, 2024 

and December 31, 2023, respectively

92

92

Additional paid-in capital

97,669

97,417

Retained earnings

88,310

78,962

Accumulated other comprehensive loss

(5,689)

(6,145)

Total shareholders’ equity

180,382

170,326

Total liabilities and shareholders’ equity

$            1,774,983

$            1,771,666

Three Months Ended

March 31,

2024
(unaudited)

2023

Interest Income

Loans, including fees

$          30,117

$        25,352

Interest-bearing time deposits in other banks

253

49

Debt securities, taxable

1,012

706

Debt securities, tax-exempt

73

87

Other interest and dividend income

1,832

1,186

Total interest income

33,287

27,380

Interest Expense

Deposits

11,277

7,374

Total interest expense

11,277

7,374

Net Interest Income

22,010

20,006

Provision for Credit Losses

475

Net Interest Income After Provision for Credit Losses

22,010

19,531

Noninterest Income

Mortgage lending income

51

54

Loss on sales, prepayments, and calls of available-for-sale debt securities

(1)

Service charges on deposit accounts

249

235

Other

1,708

384

Total noninterest income

2,008

672

Noninterest Expense

Salaries and employee benefits

5,289

4,680

Furniture and equipment

230

249

Occupancy

661

719

Data and item processing

458

386

Accounting, marketing and legal fees

99

298

Regulatory assessments

386

394

Advertising and public relations

145

148

Travel, lodging and entertainment

51

61

Other

1,816

714

Total noninterest expense

9,135

7,649

Income Before Taxes

14,883

12,554

Income tax expense

3,595

2,947

Net Income

$          11,288

$          9,607

Earnings per common share – basic

$              1.22

$            1.05

Earnings per common share – diluted

1.21

1.04

Weighted average common shares outstanding – basic

9,220,154

9,146,932

Weighted average common shares outstanding – diluted

9,317,813

9,264,247

Other Comprehensive Income

Unrealized gains on securities, net of tax expense of $0 and $554 for the three months

ended March 31, 2024 and 2023, respectively

$               456

$          1,755

Reclassification adjustment for realized losses included in net income net of tax of $0 and $0

for the three months ended March 31, 2024 and 2023, respectively

1

Other comprehensive income

$               456

$          1,756

Comprehensive Income

$          11,744

$        11,363

Net Interest Margin

For the Three Months Ended March 31,

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

$        176,072

$        2,085

4.75 %

$        134,650

$        1,235

3.72 %

Debt securities, taxable-equivalent

153,468

1,012

2.64

153,533

706

1.86

Debt securities, tax exempt

18,269

73

1.60

20,318

87

1.74

Loans held for sale

238

43

Total loans(1)

1,369,692

30,117

8.82

1,271,081

25,352

8.09

Total interest-earning assets

1,717,739

33,287

7.77

1,579,625

27,380

7.03

Noninterest-earning assets

39,769

23,542

Total assets

$     1,757,508

$     1,603,167

Funding sources:

Interest-bearing liabilities:

Deposits:

Transaction accounts

$        845,129

8,196

3.89 %

$        803,618

5,753

2.90 %

Time deposits

264,973

3,081

4.66

213,760

1,621

3.08

Total interest-bearing deposits

1,110,102

11,277

4.07

1,017,378

7,374

2.94

Total interest-bearing liabilities

$     1,110,102

11,277

4.07

$     1,017,378

7,374

2.94

Noninterest-bearing liabilities:

Noninterest-bearing deposits

$        460,028

$        425,640

Other noninterest-bearing liabilities

10,970

11,131

Total noninterest-bearing liabilities

470,998

436,771

Shareholders’ equity

176,408

149,018

Total liabilities and shareholders’ equity

$     1,757,508

$     1,603,167

Net interest income

$      22,010

$      20,006

Net interest spread

3.70 %

4.10 %

Net interest margin

5.14 %

5.14 %

(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 Friday, April 12, 2024 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/w8qEpOZ7G6v. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/w8qEpOZ7G6v 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

SOURCE Bank7 Corp.


Go to Source