Bank7 Corp. Announces Q2 2022 Earnings

Jul 27th, 2022 13:00 EST

OKLAHOMA CITY, July 27, 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 June 30, 2022.  "We are pleased to announce a strong quarter, as evidenced by record net income and earnings per share. Our dynamic geographic markets, strong loan growth and asset sensitive balance sheet, combined with our talented bankers, continues to produce outstanding results.  As we move forward, we intend to continue producing exceptional results through organic growth and strategic acquisitions," said Thomas L. Travis, President and CEO of the Company. 

Three months ended June 30, 2022 compared to three months ended March 31, 2022 

  • Net income of $7.0 million compared to $6.2 million, an increase of 13.5%
  • Diluted Earnings per share of $0.76 compared to $0.67, an increase of 13.4%
  • Total assets of $1.5 billion compared to $1.4 billion, an increase of 4.7%
  • Total loans of $1.2 billion compared to $1.1 billion, an increase of 8.5%
  • PPE of $9.5 million compared to $8.6 million, an increase of 12.3%
  • Total interest income of $16.7 million compared to $14.9 million, an increase of 11.7%

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 June 30, 2022, the Bank's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 8.97%, 11.21%, and 12.14%, respectively.  On June 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 8.97%, 11.20%, and 12.14%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

 

Bank7 Corp.

Consolidated Balance Sheets

June 30, 2022(unaudited)

December 31, 2021

Assets

Cash and due from banks

$          123,686

$               195,359

Federal funds sold

-

9,493

Cash and cash equivalents

123,686

204,852

Interest-bearing time deposits in other banks

1,992

3,237

Available-for-sale debt securities

185,048

84,808

Loans, net of allowance for loan losses of $10,819 and

$10,316 at June 30, 2022 and December 31, 2021, respectively

1,141,497

1,018,085

Loans held for sale, at fair value

635

464

Premises and equipment, net

13,581

17,257

Nonmarketable equity securities

1,192

1,202

Core deposit intangibles

1,489

1,643

Goodwill

8,717

8,479

Interest receivable and other assets

9,983

10,522

Total assets

$       1,487,820

$            1,350,549

Liabilities and Shareholders' Equity

Deposits

Noninterest-bearing

$          442,150

$               366,705

Interest-bearing

903,627

850,766

Total deposits

1,345,777

1,217,471

Income taxes payable

2,865

-

Interest payable and other liabilities

7,687

5,670

Total liabilities

1,356,329

1,223,141

Shareholders' equity

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

issued and outstanding: 9,098,655 and 9,071,417 at 

91

91

June 30, 2022 and December 31, 2021 respectively

Additional paid-in capital

95,016

94,024

Retained earnings

44,167

33,149

Accumulated other comprehensive income (loss)

(7,783)

144

Total shareholders' equity

131,491

127,408

Total liabilities and shareholders' equity

$       1,487,820

$            1,350,549

Three months ended June 30, 

Six months ended June 30, 

2022

2021

2022

2021

Interest Income

Loans, including fees

$        15,754

$        14,357

$        30,131

$        27,450

Interest-bearing time deposits in other banks

13

38

29

106

Debt securities, taxable

571

-

935

-

Debt securities, tax-exempt

85

-

183

-

Other interest and dividend income

249

42

319

68

Total interest income

16,672

14,437

31,597

27,624

Interest Expense

Deposits

878

772

1,595

1,647

Total interest expense

878

772

1,595

1,647

Net Interest Income

15,794

13,665

30,002

25,977

Provision for Loan Losses

219

1,300

495

2,575

Net Interest Income After Provision for Loan Losses

15,575

12,365

29,507

23,402

Noninterest Income

Secondary market income

95

78

261

92

Gain (Loss) on sales of available-for-sale debt securities (includes accumulated

other comprehensive loss reclassification of $10,000 and ($117,000) for the 

10

-

(117)

-

three months ended June 30, 2022 and 2021, respectively; $10,000 and $0 

for the six months ended June 30, 2022 and 2021, respectively)

Service charges on deposit accounts

219

119

468

239

Other

361

382

748

585

Total noninterest income

685

579

1,360

916

Noninterest Expense

Salaries and employee benefits

4,126

2,949

8,152

5,739

Furniture and equipment

386

231

744

433

Occupancy

571

458

1,122

930

Data and item processing

559

286

946

565

Accounting, marketing and legal fees

209

149

442

297

Regulatory assessments

226

161

422

302

Advertsing and public relations

121

71

231

105

Travel, lodging and entertainment

74

118

122

207

Other

691

452

1,202

841

Total noninterest expense

6,963

4,875

13,383

9,419

Income Before Taxes

9,297

8,069

17,484

14,899

Income tax expense

2,280

1,964

4,283

3,690

Net Income

$          7,017

$          6,105

$        13,201

$        11,209

Earnings per common share - basic

$            0.77

$            0.67

$            1.45

$            1.24

Earnings per common share - diluted

0.76

0.67

1.44

1.24

Weighted average common shares outstanding - basic

9,097,280

9,050,606

9,093,150

9,050,295

Weighted average common shares outstanding - diluted

9,194,923

9,074,408

9,187,637

9,066,797

Other Comprehensive Income (Loss)

Unrealized losses on securities, net of tax benefit of $1.5 million

$        (3,788)

$               -

$        (7,783)

$            -

Reclassification adjustment for realized gain(loss) included in net income,

net of tax of $17,000

10

-

(134)

-

Other comprehensive loss, net of tax benefit of $1.5 million

$        (3,778)

$                 -

$        (7,917)

$                 -

Comprehensive Income (Loss)

$          3,239

$          6,105

$          5,284

$        11,209

Net Interest Margin

For the Six Months Ended June 30,

2022

2021

AverageBalance

InterestIncome/Expense

AverageYield/Rate

AverageBalance

InterestIncome/Expense

AverageYield/Rate

(Dollars in thousands)

Interest-Earning Assets:

Short-term investments

$        159,157

$            330

0.42 %

$        127,203

$            157

0.25 %

Investment securities, taxable

132,298

948

1.45

1,180

17

2.91

Debt securities, tax exempt

22,275

188

1.70

-

-

-

Loans held for sale

383

-

-

445

-

-

Total loans(1)

1,047,220

30,131

5.80

868,526

27,450

6.37

Total interest-earning assets

1,361,333

31,597

4.68

997,354

27,624

5.59

Noninterest-earning assets

24,506

6,090

Total assets

$     1,385,839

$     1,003,444

Funding sources:

Interest-bearing liabilities:

Deposits:

Transaction accounts

$        667,159

1,012

0.31 %

$        412,070

691

0.34 %

Time deposits

176,587

583

0.67

208,903

956

0.92

Total interest-bearing deposits

843,746

1,595

0.38

620,973

1,647

0.53

Total interest-bearing liabilities

843,746

1,595

0.38

620,973

1,647

0.53

Noninterest-bearing liabilities:

Noninterest-bearing deposits

405,674

266,237

Other noninterest-bearing liabilities

6,615

5,126

Total noninterest-bearing liabilities

412,289

271,363

Shareholders' equity

129,804

111,108

Total liabilities and shareholders' equity

$     1,385,839

$     1,003,444

Net interest income

$       30,002

$       25,977

Net interest spread

4.30 %

5.05 %

Net interest margin

4.44 %

5.25 %

(1)

Nonaccrual loans are included in total loans

For the Three Months Ended June 30,

2022

2021

AverageBalance

InterestIncome/Expense

AverageYield/Rate

AverageBalance

InterestIncome/Expense

AverageYield/Rate

(Dollars in thousands)

Interest-Earning Assets:

Short-term investments

$        130,961

$           249

0.76 %

$        128,643

$             64

0.20 %

Debt securities, taxable-equivalent

174,583

584

1.34

1,187

16

5.41

Debt securities, tax exempt

22,244

85

1.53

-

-

-

Loans held for sale

279

-

-

557

-

-

Total loans(1)

1,090,053

15,754

5.80

889,278

14,357

6.48

Total interest-earning assets

1,418,120

16,672

4.72

1,019,665

14,437

5.68

Noninterest-earning assets

25,341

5,086

Total assets

$     1,443,461

$     1,024,751

Funding sources:

Interest-bearing liabilities:

Deposits:

Transaction accounts

$        693,619

555

0.32 %

$        399,293

329

0.33 %

Time deposits

183,494

323

0.71

212,212

443

0.84

Total interest-bearing deposits

877,113

878

0.40

611,505

772

0.51

Total interest-bearing liabilities

$        877,113

878

0.40

$        611,505

772

0.51

Noninterest-bearing liabilities:

Noninterest-bearing deposits

$        429,388

$        293,867

Other noninterest-bearing liabilities

6,925

6,047

Total noninterest-bearing liabilities

436,313

299,914

Shareholders' equity

130,035

113,332

Total liabilities and shareholders' equity

$     1,443,461

$     1,024,751

Net interest income

$      15,794

$      13,665

Net interest spread

4.31 %

5.17 %

Net interest margin

4.47 %

5.38 %

(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, July 27, 2022 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/lO0ZkVNkM4w. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/lO0ZkVNkM4w 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 TravisPresident & CEO(405) 810-8600

SOURCE Bank7 Corp.

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