BSVN - Bank7 Corp. Announces Q3 2022 Earnings

October, 26 2022 09:00 AM Bank7 Corp.

PR Newswire

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



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

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


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

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

SOURCE Bank7 Corp.

Company Name:	Bank7 Corp.
Stock Symbol:	BSVN
Market:	NASDAQ
Website:	bank7.com

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