OKLAHOMA
CITY, Oct. 11, 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 September 30, 2024. "We are pleased to
announce another record quarter of net income and EPS. Our
properly matched balance sheet, disciplined approach to cost
controls, and excellent credit quality continues to produce
outstanding results" said Thomas L.
Travis, President and CEO of the Company."
For the three months ended September 30,
2024 compared to the three months ended September 30, 2023:
- Net income of $11.8 million
compared to $7.9 million, an increase
of 49.97%
- Earnings per share of $1.24
compared to $0.85, an increase of
45.88%
- Total assets of $1.7 billion
compared to $1.8 billion, a decrease
of 1.80%
- Total loans of $1.4 billion
compared to $1.4 billion, an increase
of 3.21%
- PPE of $15.5 million compared to
$14.4 million, an increase of
7.86%
- Total interest income of $33.5
million compared to $31.7
million, an increase of 5.57%
Three months ended September 30,
2024 compared to three months ended June 30, 2024
- Net income of $11.8 million
compared to $11.5 million, an
increase of 2.20%
- Earnings per share of $1.24
compared to $1.23, an increase of
0.81%
- Total assets of $1.7 billion
compared to $1.7 billion, an increase
of 3.42%
- Total loans of $1.4 billion
compared to $1.4 billion, an increase
of 6.32%
- PPE of $15.5 million compared to
$15.3 million, an increase of
1.61%
- Total interest income of $33.5
million compared to $32.4
million, an increase of 3.24%
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, 2024, the Bank's Tier 1 leverage
ratio, Tier 1 risk-based capital ratio, and total risk-based
capital ratios were 11.64%, 12.93%, and 14.12%, respectively.
On September 30, 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
11.64%, 12.92%, and 14.11%, 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
|
|
September
30,
2024
|
|
June 30,
2024
|
|
September
30,
2023
|
|
Calculation of
Pre-Provision Pre-Tax Earnings ("PPE")
|
(Dollars in
thousands)
|
|
Net Income
|
$
11,777
|
|
$
11,524
|
|
$
7,853
|
|
Income Tax
Expense
|
3,719
|
|
3,731
|
|
2,351
|
|
Pre-tax net
income
|
15,496
|
|
15,255
|
|
10,204
|
|
Add back: Provision for
credit losses
|
-
|
|
-
|
|
4,159
|
|
Add back: (Gain)Loss on
sales/calls of AFS debt securities
|
4
|
|
-
|
|
7
|
|
Pre-provision pre-tax
earnings
|
15,500
|
|
15,255
|
|
14,370
|
|
Bank7
Corp.
|
|
|
Consolidated Balance
Sheets
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
September 30,
2024
(unaudited)
|
|
December 31,
2023
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
186,720
|
|
$
181,042
|
|
|
Interest-bearing time
deposits in other banks
|
8,715
|
|
17,679
|
|
|
Available-for-sale debt
securities
|
65,160
|
|
169,487
|
|
|
Loans, net of allowance
for credit losses of $17,873 and
|
|
|
|
|
|
$19,691 at September
30, 2024 and December 31, 2023, respectively
|
1,419,671
|
|
1,341,148
|
|
|
Loans held for sale, at
fair value
|
-
|
|
718
|
|
|
Premises and equipment,
net
|
17,126
|
|
14,942
|
|
|
Nonmarketable equity
securities
|
1,278
|
|
1,283
|
|
|
Core deposit
intangibles
|
907
|
|
1,031
|
|
|
Goodwill
|
8,458
|
|
8,458
|
|
|
Interest receivable and
other assets
|
32,407
|
|
35,878
|
|
|
|
|
|
|
|
Total assets
|
$
1,740,442
|
|
$
1,771,666
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
Noninterest-bearing
|
$
322,480
|
|
$
482,349
|
|
|
Interest-bearing
|
1,201,736
|
|
1,109,042
|
|
|
|
|
|
|
|
Total
deposits
|
1,524,216
|
|
1,591,391
|
|
|
|
|
|
|
|
Income taxes
payable
|
427
|
|
302
|
|
|
Interest payable and
other liabilities
|
11,637
|
|
9,647
|
|
|
|
|
|
|
|
Total
liabilities
|
1,536,280
|
|
1,601,340
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Common stock, $0.01 par
value; 50,000,000 shares authorized; shares
|
|
|
|
|
|
issued and outstanding:
9,341,267 and 9,197,696 at September 30, 2024
|
|
|
|
|
|
and December 31, 2023,
respectively
|
93
|
|
92
|
|
|
Additional paid-in
capital
|
100,760
|
|
97,417
|
|
|
Retained
earnings
|
107,426
|
|
78,962
|
|
|
Accumulated other
comprehensive loss
|
(4,117)
|
|
(6,145)
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
204,162
|
|
170,326
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
1,740,442
|
|
$
1,771,666
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2024
(unaudited)
|
|
2023
|
|
2024
(unaudited)
|
|
2023
|
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
30,791
|
|
$ 28,880
|
|
$
89,834
|
|
$ 81,117
|
|
Interest-bearing time
deposits in other banks
|
|
177
|
|
159
|
|
675
|
|
270
|
|
Debt securities,
taxable
|
|
303
|
|
699
|
|
2,266
|
|
2,106
|
|
Debt securities,
tax-exempt
|
|
69
|
|
81
|
|
214
|
|
253
|
|
Other interest and
dividend income
|
|
2,148
|
|
1,903
|
|
6,221
|
|
5,398
|
|
|
|
|
|
|
|
|
|
|
Total interest
income
|
|
33,488
|
|
31,722
|
|
99,210
|
|
89,144
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
12,271
|
|
10,976
|
|
34,752
|
|
27,894
|
|
|
|
|
|
|
|
|
|
|
Total interest
expense
|
|
12,271
|
|
10,976
|
|
34,752
|
|
27,894
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
|
21,217
|
|
20,746
|
|
64,458
|
|
61,250
|
|
|
|
|
|
|
|
|
|
|
Provision for Credit
Losses
|
|
-
|
|
4,159
|
|
-
|
|
5,645
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
After Provision for Credit Losses
|
|
21,217
|
|
16,587
|
|
64,458
|
|
55,605
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
|
Mortgage lending
income
|
|
103
|
|
6
|
|
233
|
|
172
|
|
Loss on sales,
prepayments, and calls of available-for-sale debt
securities
|
|
(4)
|
|
(7)
|
|
(4)
|
|
(15)
|
|
Service charges on
deposit accounts
|
|
233
|
|
213
|
|
742
|
|
647
|
|
Other
|
|
3,345
|
|
795
|
|
7,881
|
|
1,668
|
|
|
|
|
|
|
|
|
|
|
Total noninterest
income
|
|
3,677
|
|
1,007
|
|
8,852
|
|
2,472
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
5,333
|
|
4,910
|
|
15,740
|
|
14,299
|
|
Furniture and
equipment
|
|
258
|
|
254
|
|
813
|
|
755
|
|
Occupancy
|
|
711
|
|
662
|
|
1,985
|
|
1,980
|
|
Data and item
processing
|
|
498
|
|
424
|
|
1,437
|
|
1,280
|
|
Accounting, marketing
and legal fees
|
|
218
|
|
14
|
|
582
|
|
491
|
|
Regulatory
assessments
|
|
261
|
|
279
|
|
984
|
|
1,013
|
|
Advertsing and public
relations
|
|
129
|
|
74
|
|
358
|
|
273
|
|
Travel, lodging and
entertainment
|
|
87
|
|
85
|
|
270
|
|
255
|
|
Other
|
|
1,903
|
|
688
|
|
5,507
|
|
2,068
|
|
|
|
|
|
|
|
|
|
|
Total noninterest
expense
|
|
9,398
|
|
7,390
|
|
27,676
|
|
22,414
|
|
|
|
|
|
|
|
|
|
|
Income Before
Taxes
|
|
15,496
|
|
10,204
|
|
45,634
|
|
35,663
|
|
Income tax
expense
|
|
3,719
|
|
2,351
|
|
11,045
|
|
8,457
|
|
Net
Income
|
|
$
11,777
|
|
$
7,853
|
|
$
34,589
|
|
$ 27,206
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - basic
|
|
$
1.26
|
|
$
0.86
|
|
$
3.73
|
|
$
2.97
|
|
Earnings per common
share - diluted
|
|
1.24
|
|
0.85
|
|
3.68
|
|
2.94
|
|
Weighted average common
shares outstanding - basic
|
|
9,323,622
|
|
9,158,027
|
|
9,264,616
|
|
9,152,788
|
|
Weighted average common
shares outstanding - diluted
|
|
9,498,318
|
|
9,273,595
|
|
9,402,214
|
|
9,262,003
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
Unrealized gains
(losses) on securities, net of tax expense of $515 and tax benefit
of $485
|
|
|
|
|
|
|
|
|
|
for the three months
ended September 30, 2024 and 2023, respectively; net of tax
expense
|
|
|
|
|
|
|
|
|
|
of $638 and $70 for the
nine months ended September 30, 2024 and 2023,
respectively
|
|
$
1,628
|
|
$
(372)
|
|
$
2,025
|
|
$
214
|
|
Reclassification
adjustment for realized losses included in net income net of tax of
$1 and $2
|
|
|
|
|
|
|
|
|
|
for the three months
ended September 30, 2024 and 2023, respectively; $1 and $4 for
the
|
|
|
|
|
|
|
|
|
|
nine months ended
September 30, 2024 and 2023, respectively
|
|
3
|
|
5
|
|
3
|
|
11
|
|
Other comprehensive
income (loss)
|
|
$
1,631
|
|
$
(367)
|
|
$
2,028
|
|
$
225
|
|
Comprehensive
Income
|
|
$
13,408
|
|
$
7,486
|
|
$
36,617
|
|
$ 27,431
|
|
|
Net Interest
Margin
|
|
|
For the Nine Months
Ended September 30,
|
|
|
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
|
|
$
180,426
|
|
$
6,896
|
|
5.09 %
|
|
$
162,432
|
|
$
5,668
|
|
4.67 %
|
|
Debt securities,
taxable-equivalent
|
|
103,507
|
|
2,266
|
|
2.92
|
|
152,702
|
|
2,106
|
|
1.84
|
|
Debt securities, tax
exempt
|
|
17,468
|
|
214
|
|
1.63
|
|
19,828
|
|
253
|
|
1.71
|
|
Loans held for
sale
|
|
281
|
|
-
|
|
-
|
|
115
|
|
-
|
|
-
|
|
Total
loans(1)
|
|
1,381,200
|
|
89,834
|
|
8.66
|
|
1,299,754
|
|
81,117
|
|
8.34
|
|
Total interest-earning
assets
|
|
1,682,882
|
|
99,210
|
|
7.85
|
|
1,634,831
|
|
89,144
|
|
7.29
|
|
Noninterest-earning
assets
|
|
39,499
|
|
|
|
|
|
22,560
|
|
|
|
|
|
Total assets
|
|
$
1,722,381
|
|
|
|
|
|
$
1,657,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding
sources:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
accounts
|
|
$
872,635
|
|
25,726
|
|
3.93 %
|
|
$
812,962
|
|
20,346
|
|
3.35 %
|
|
Time
deposits
|
|
255,348
|
|
9,026
|
|
4.71
|
|
257,418
|
|
7,548
|
|
3.92
|
|
Total interest-bearing
deposits
|
|
1,127,983
|
|
34,752
|
|
4.10
|
|
1,070,380
|
|
27,894
|
|
3.48
|
|
Total interest-bearing
liabilities
|
|
1,127,983
|
|
34,752
|
|
4.10
|
|
1,070,380
|
|
27,894
|
|
3.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
395,822
|
|
|
|
|
|
420,356
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
12,219
|
|
|
|
|
|
10,496
|
|
|
|
|
|
Total
noninterest-bearing liabilities
|
|
408,041
|
|
|
|
|
|
430,852
|
|
|
|
|
|
Shareholders'
equity
|
|
186,357
|
|
|
|
|
|
156,159
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
1,722,381
|
|
|
|
|
|
$
1,657,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
$ 64,458
|
|
|
|
|
|
$ 61,250
|
|
|
|
Net interest
spread
|
|
|
|
|
|
3.75 %
|
|
|
|
|
|
3.81 %
|
|
Net interest
margin
|
|
|
|
|
|
5.10 %
|
|
|
|
|
|
5.01 %
|
|
|
(1)
Nonaccrual
loans are included in total loans
|
|
|
Net Interest
Margin
|
|
|
For the Three Months
Ended September 30,
|
|
|
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
|
|
$
191,583
|
|
$
2,325
|
|
4.81 %
|
|
$
176,589
|
|
$
2,062
|
|
4.63 %
|
|
Debt securities,
taxable-equivalent
|
|
51,172
|
|
303
|
|
2.35
|
|
151,174
|
|
699
|
|
1.83
|
|
Debt securities, tax
exempt
|
|
16,889
|
|
69
|
|
1.62
|
|
19,430
|
|
81
|
|
1.65
|
|
Loans held for
sale
|
|
250
|
|
-
|
|
-
|
|
232
|
|
-
|
|
-
|
|
Total
loans(1)
|
|
1,418,512
|
|
30,791
|
|
8.61
|
|
1,344,038
|
|
28,880
|
|
8.52
|
|
Total interest-earning
assets
|
|
1,678,406
|
|
33,488
|
|
7.92
|
|
1,691,463
|
|
31,722
|
|
7.44
|
|
Noninterest-earning
assets
|
|
40,002
|
|
|
|
|
|
23,407
|
|
|
|
|
|
Total assets
|
|
$
1,718,408
|
|
|
|
|
|
$
1,714,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding
sources:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
accounts
|
|
$
922,117
|
|
9,237
|
|
3.97 %
|
|
$
823,331
|
|
7,733
|
|
3.73 %
|
|
Time
deposits
|
|
253,640
|
|
3,034
|
|
4.75
|
|
292,235
|
|
3,243
|
|
4.40
|
|
Total interest-bearing
deposits
|
|
1,175,757
|
|
12,271
|
|
4.14
|
|
1,115,566
|
|
10,976
|
|
3.90
|
|
Total interest-bearing
liabilities
|
|
$
1,175,757
|
|
12,271
|
|
4.14
|
|
$
1,115,566
|
|
10,976
|
|
3.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
|
$
332,487
|
|
|
|
|
|
$
422,691
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
12,221
|
|
|
|
|
|
11,649
|
|
|
|
|
|
Total
noninterest-bearing liabilities
|
|
344,708
|
|
|
|
|
|
434,340
|
|
|
|
|
|
Shareholders'
equity
|
|
197,943
|
|
|
|
|
|
164,964
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
1,718,408
|
|
|
|
|
|
$
1,714,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
$ 21,217
|
|
|
|
|
|
$ 20,746
|
|
|
|
Net interest
spread
|
|
|
|
|
|
3.78 %
|
|
|
|
|
|
3.54 %
|
|
Net interest
margin
|
|
|
|
|
|
5.02 %
|
|
|
|
|
|
4.87 %
|
|
|
(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
Friday, October 11, 2024 at
10:00 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/A87GMojkvZD. For those
not able to participate in the live call, an archive of the webcast
will be available at https://app.webinar.net/A87GMojkvZD 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
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SOURCE Bank7 Corp.