Bank7 Corp. Announces Q3 2024 Earnings

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
[phone]

SOURCE Bank7 Corp.