EX-99.1 2 ex99_1.htm EXHIBIT 99.1

Exhibit 99.1


FOR IMMEDIATE RELEASE: Bank7 Corp. Announces Record 1Q 2019 Earnings

Oklahoma City, OK, April 30, 2019 – 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 March 31, 2019.  "We are pleased to announce record pre-tax income for our first quarter results.  Our first quarter performance shows continued balance sheet growth, especially in our core deposits.  That growth, combined with our excellent efficiency ratio and asset quality, continues to produce outstanding returns in both  average assets and average tangible common equity.  These results were achieved despite incurring additional costs related to our status as a public company and the addition of our Tulsa loan production office,” said Thomas L. Travis, President and CEO of the Company.

Three months ended March 31, 2019 compared to three months ended March 31, 2018:


-
Pre-tax income of $6.8 million, a 7.43% increase

-
Adjusted income of $5.1 million, a 8.9% increase

-
Interest income on loans, including loan fee income, totaled $11.6 million, a 7.36% increase

-
Net interest margin, excluding loan fee income, of 4.93%, a 28 basis point increase

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.  At March 31, 2019 the Tier 1 leverage ratio, common equity Tier 1 risk-based capital ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 12.18%, 16.05%, 16.05%, and 17.30% respectively for the Bank.  At March 31, 2019 the Tier 1 leverage ratio, common equity Tier 1 risk-based capital ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 12.05%, 15.87%, 15.87%, and 17.13% respectively for the Company on a consolidated basis.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

Pre-tax, pre-provision net income is defined as income before taxes and provision for loan losses.  We believe the most directly comparable GAAP financial measure is income before taxes.  Disclosure of this measure enables you to compare our operations to those of other banking companies before consideration of taxes and provision expense, which some investors may consider to be a more appropriate comparison given our S Corporation status prior to September 2018.  We calculate our adjusted net income, return on average assets, and return on average equity, and per share amounts by using a combined C Corporation effective tax rate for federal and state income taxes of 25.0% and 26.0% in the first quarter of 2019 and 2018, respectively.  This calculation illustrates only the change from our status as a S Corporation into a C Corporation and does not give effect to any other transaction.  However, we acknowledge that our non-GAAP financial measures have a number of limitations.  As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other banking companies use.  Other banking companies may use names similar to those we use for non-GAAP financial measures we disclose, but may calculate them differently.  You should understand how we and other companies each calculate their non-GAAP financial measures when making comparisons.  The following reconciliation table provides a more detailed analysis of these non-GAAP financial measures:


   
Three months ended
March 31,
 
(Dollars in thousands, except per share data)
 
2019
   
2018
 
Loan interest income (excluding loan fees)
           
Total loan interest income, including loan fee income
 
$
11,622
   
$
10,825
 
Loan fee income
   
(1,289
)
   
(1,832
)
Loan interest income excluding loan fee income
 
$
10,333
   
$
8,993
 
                 
Average total loans
 
$
586,408
   
$
566,021
 
Yield on loans (including loan fee income)
   
8.04
%
   
7.65
%
Yield on loans (excluding loan fee income)
   
7.15
%
   
6.44
%
                 
Net interest margin (excluding loan fees)
               
Net interest income
 
$
10,353
   
$
9,861
 
Loan fee income
   
(1,289
)
   
(1,832
)
Net interest income excluding loan fees
 
$
9,064
   
$
8,029
 
                 
Average earning assets
 
$
745,739
   
$
690,139
 
Net interest margin (including loan fee income)
   
5.63
%
   
5.72
%
Net interest margin (excluding loan fee income)
   
4.93
%
   
4.72
%
                 
Pre-tax, pre-provision net earnings
               
Net income before income taxes
 
$
6,821
   
$
6,349
 
Plus: Provision (reversal of) for loan losses
   
-
     
(100
)
Pre-tax, pre-provision net earnings
 
$
6,821
   
$
6,449
 
                 
Adjusted provision for income tax
               
Net income before income taxes
 
$
6,821
   
$
6,349
 
Total effective adjusted tax rate
   
25.0
%
   
26.0
%
Adjusted provision for income taxes
 
$
1,705
   
$
1,651
 
                 
Adjusted net income
               
Net income before income taxes
 
$
6,821
   
$
6,349
 
Adjusted provision for income taxes
   
1,705
     
1,651
 
Adjusted net income
 
$
5,116
   
$
4,698
 
                 
Adjusted ratios and per share data
               
Adjusted net income (numerator)
 
$
5,116
   
$
4,698
 
                 
Average assets (denominator)
 
$
754,176
   
$
700,983
 
Adjusted return on average assets
   
2.75
%
   
2.72
%
                 
Average shareholders' equity (denominator)
 
$
90,813
   
$
71,410
 
Adjusted return on average shareholders' equity
   
22.85
%
   
26.10
%
                 
Average tangible common equity (denominator)
 
$
88,839
   
$
69,261
 
Adjusted return on average tangible common equity
   
23.35
%
   
27.51
%
                 
Weighted average common shares outstanding basic (denominator)
   
10,187,500
     
7,287,500
 
Adjusted net income per common share--basic
   
0.50
     
0.64
 
                 
Weighted average common shares outstanding diluted (denominator)
   
10,187,500
     
7,287,500
 
Adjusted net income per common share--diluted
   
0.50
     
0.64
 
                 
Tangible assets
               
Total assets
 
$
787,236
   
$
706,565
 
Less: Goodwill
   
(1,943
)
   
(2,149
)
Tangible assets
 
$
785,293
   
$
704,416
 
                 
Tangible shareholders' equity
               
Total shareholders' equity
 
$
93,753
   
$
75,524
 
Less: Goodwill
   
(1,943
)
   
(2,149
)
Tangible shareholders' equity
 
$
91,810
   
$
73,375
 
                 
Tangible shareholders' equity
               
Tangible shareholders' equity (numerator)
 
$
91,810
   
$
73,375
 
Tangible assets (denominator)
 
$
785,293
   
$
704,416
 
Tangible common equity to tangible assets
   
11.69
%
   
10.42
%
                 
End of period common shares outstanding
   
10,187,500
     
7,287,500
 
Book value per share
 
$
9.20
   
$
10.36
 
Tangible book value per share
 
$
9.01
   
$
10.07
 
Total shareholders' equity to total assets
   
11.91
%
   
10.69
%


   
Net Interest Margin Excluding Loan Fee Income
 
   
For the Three Months Ended March 31,
 
   
2019
   
2018
 
   
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(1)
 
$
158,068
   
$
956
     
2.45
%
 
$
123,069
   
$
515
     
1.67
%
Investment securities(2)
   
1,055
     
     
0.00
     
1,049
     
     
0.00
 
Loans held for sale
   
208
     
     
0.00
     
71
     
     
0.00
 
Total loans(3)
   
586,408
     
10,333
     
7.15
     
565,950
     
8,992
     
6.36
 
Total interest-earning assets
   
745,739
     
11,289
     
6.14
     
690,139
     
9,507
     
5.51
 
Noninterest-earning assets
   
8,437
                     
10,844
                 
Total assets
 
$
754,176
                   
$
700,983
                 
                                                 
Funding sources:
                                               
Interest-bearing liabilities:
                                               
Deposits:
                                               
Transaction accounts
 
$
285,289
     
1,299
     
1.85
%
 
$
211,585
     
613
     
1.16
%
Time deposits
   
192,499
     
925
     
1.95
     
243,319
     
806
     
1.33
 
Total interest-bearing deposits
   
477,788
     
2,224
     
1.89
     
454,904
     
1,419
     
1.25
 
Other borrowings
   
     
     
0.00
     
5,369
     
60
     
4.47
 
Total interest-bearing liabilities
   
477,788
     
2,224
     
1.89
     
460,273
     
1,479
     
1.29
 
                                                 
Noninterest-bearing liabilities:
                                               
Noninterest-bearing deposits
   
179,801
                     
165,974
                 
Other noninterest-bearing liabilities
   
5,774
                     
3,326
                 
Total noninterest-bearing liabilities
   
185,575
                     
169,300
                 
Shareholders’ equity
   
90,813
                     
71,410
                 
Total liabilities and shareholders’ equity
 
$
754,176
                   
$
700,983
                 
                                                 
Net interest income excluding loan fee income
         
$
9,064
                   
$
8,029
         
Net interest spread excluding loan fee income(4)
                   
4.25
%
                   
4.22
%
Net interest margin excluding loan fee income
                   
4.93
%
                   
4.65
%

(1)
Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.

(2)
Includes income and average balances for FHLB and FRB stock.

(3)
Non-accrual loans are included in loans.

(4)
Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.


   
Net Interest Margin With Loan Fee Income
 
   
For the Three Months Ended March 31,
 
   
2019
   
2018
 
   
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(1)
 
$
158,068
   
$
956
     
2.45
%
 
$
123,069
   
$
515
     
1.67
%
Investment securities(2)
   
1,055
     
     
0.00
     
1,049
     
     
0.00
 
Loans held for sale
   
208
     
     
0.00
     
71
     
     
0.00
 
Total loans(3)
   
586,408
     
11,622
     
8.04
     
565,950
     
10,825
     
7.65
 
Total interest-earning assets
   
745,739
     
12,578
     
6.84
     
690,139
     
11,340
     
6.57
 
Noninterest-earning assets
   
8,437
                     
10,844
                 
Total assets
 
$
754,176
                   
$
700,983
                 
                                                 
Funding sources:
                                               
Interest-bearing liabilities:
                                               
Deposits:
                                               
Transaction accounts
 
$
285,289
     
1,299
     
1.85
%
 
$
211,585
     
613
     
1.16
%
Time deposits
   
192,499
     
925
     
1.95
     
243,319
     
806
     
1.33
 
Total interest-bearing deposits
   
477,788
     
2,224
     
1.89
     
454,904
     
1,419
     
1.25
 
Other borrowings
   
     
     
0.00
     
5,369
     
60
     
4.47
 
Total interest-bearing liabilities
   
477,788
     
2,224
     
1.89
     
460,273
     
1,479
     
1.29
 
                                                 
Noninterest-bearing liabilities:
                                               
Noninterest-bearing deposits
   
179,801
                     
165,974
                 
Other noninterest-bearing liabilities
   
5,774
 
                   
3,326
                 
Total noninterest-bearing liabilities
   
185,575
                     
169,300
                 
Shareholders’ equity
   
90,813
                     
71,410
                 
Total liabilities and shareholders’ equity
 
$
754,176
                   
$
700,983
                 
                                                 
Net interest income excluding loan fee income
         
$
10,353
                   
$
9,861
         
Net interest spread excluding loan fee income(4)
                   
4.95
%
                   
5.29
%
Net interest margin excluding loan fee income
                   
5.63
%
                   
5.72
%

(1)
Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.

(2)
Includes income and average balances for FHLB and FRB stock.

(3)
Non-accrual loans are included in loans.

(4)
Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.


Bank7 Corp.
Consolidated Balance Sheets

Dollars in thousands, exceper per share data
 
Unaudited as of
       
Assets
 
March 31,
   
December 31,
 
   
2019
   
2018
 
             
Cash and due from banks
 
$
156,149
   
$
128,090
 
Interest-bearing time deposits in other banks
   
34,277
     
31,759
 
Loans, net
   
578,790
     
592,078
 
Loans held for sale
   
207
     
512
 
Premises and equipment, net
   
8,289
     
7,753
 
Nonmarketable equity securities
   
1,055
     
1,055
 
Foreclosed assets held for sale
   
110
     
110
 
Goodwill and intangibles
   
1,943
     
1,995
 
Interest receivable and other assets
   
6,416
     
7,159
 
                 
Total assets
 
$
787,236
   
$
770,511
 
                 
Liabilities and Shareholders’ Equity
               
                 
Deposits
               
Noninterest-bearing
 
$
185,351
   
$
201,159
 
Interest-bearing
   
501,325
     
474,744
 
                 
Total deposits
   
686,676
     
675,903
 
                 
Borrowings
   
-
     
-
 
Income taxes payable
   
3,650
     
1,913
 
Interest payable and other liabilities
   
3,157
     
4,229
 
                 
Total liabilities
   
693,483
     
682,045
 
                 
Common stock
   
102
     
102
 
Additional paid-in capital
   
80,446
     
80,275
 
Retained earnings
   
13,205
     
8,089
 
                 
Total shareholders’ equity
   
93,753
     
88,466
 
                 
Total liabilities and shareholders’ equity
 
$
787,236
   
$
770,511
 


Bank7 Corp.
Consolidated Quarterly Statements of Income

 
 
Unaudited as of
 
 
 
Quarter Ended
 
 
 
March 31,
 
Dollars in thousands, exceper per share data
 
2019
   
2018
 
Interest Income
     
Loans, including fees
 
$
11,622
   
$
10,825
 
Interest-bearing time deposits in other banks
   
417
     
149
 
Interest-bearing deposits in other banks
   
538
     
366
 
                 
Total interest income
   
12,577
     
11,340
 
                 
Interest Expense
               
Deposits
   
2,224
     
1,419
 
Other borrowings
   
-
     
60
 
                 
Total interest expense
   
2,224
     
1,479
 
                 
Net Interest Income
   
10,353
     
9,861
 
                 
Provision for Loan Losses
   
-
     
100
 
                 
Net Interest Income After Provision for Loan Losses
   
10,353
     
9,761
 
                 
Noninterest Income
               
Secondary market income
   
37
     
40
 
Service charges on deposit accounts
   
60
     
80
 
Other
   
126
     
144
 
                 
Total noninterest income
   
223
     
264
 
                 
Noninterest Expense
               
Salaries and employee benefits
   
2,171
     
2,150
 
Furniture and equipment
   
159
     
157
 
Occupancy
   
343
     
291
 
Data and item processing
   
262
     
233
 
Accounting, marketing and legal fees
   
147
     
34
 
Regulatory assessments
   
32
     
126
 
Advertising and public relations
   
186
     
187
 
Travel, lodging and entertainment
   
42
     
193
 
Other
   
413
     
305
 
                 
Total noninterest expense
   
3,755
     
3,676
 
                 
Income Before Taxes
   
6,821
     
6,349
 
Income tax expense
   
1,705
     
-
 
Net Income
 
$
5,116
   
$
6,349
 
                 
Basic earnings per common share
 
$
0.50
   
$
0.87
 
Diluted earnings per common share
   
0.50
     
0.87
 
Weighted average common shares outstanding - basic and diluted
   
10,187,500
     
7,287,500
 


About Bank7 Corp.

We are Bank7 Corp., a bank holding company headquartered in Oklahoma City, Oklahoma. Through our wholly-owned subsidiary, Bank7, we operate eight branches 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 2019 results, which will be broadcast live over the Internet, on Tuesday, April 30, 2019 at 4:30 p.m. Eastern Time. To participate in the call, dial 1-888-348-6421, or access it live over the Internet at https://services.choruscall.com/links/bsvn190430.html.  For those who cannot listen to the live call, a replay will be available through May 14, 2019 and may be accessed by dialing 1-877-344-7529 and using pass code 10130723. Also, an archive of the webcast will be available shortly after the call at https://services.choruscall.com/links/bsvn190430.html 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 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.

About Non-GAAP Financial Measures

This communication includes certain non-GAAP financial measures, including adjusted net income, adjusted earnings per share, adjusted return on average assets and adjusted return on average shareholders’ equity. These non-GAAP financial measures and any other non-GAAP financial measures that we discuss in this presentation should not be considered in isolation, and should be considered as additions to, and not substitutes for or superior to, measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Bank7 Corp.’s non-GAAP financial measures as tools for comparison. See the table above in this communication for a reconciliation of the non-GAAP financial measures used in (or conveyed orally during) this communication to their most directly comparable GAAP financial measures.

Contact:
Thomas Travis
President & CEO
(405) 810-8600