EX-99.1 2 ex99_1.htm EXHIBIT 99.1

Exhibit 99.1


FOR IMMEDIATE RELEASE: Bank7 Corp. Announces 4Q and Full Year 2019 Earnings

Oklahoma City, OK, January 30, 2020 – Bank7 Corp. (NASDAQ: BSVN) ("the Company"), the parent company of Oklahoma City-based Bank7 (the "Bank"), today reported unaudited results for the fiscal quarter and year ended December 31, 2019.  "The fourth quarter was another good quarter for Bank7 and we are particularly pleased with our robust loan growth, the continuation of excellent credit quality, and our ability to maintain a strong net interest margin, especially in a declining interest rate environment,” said Thomas L. Travis, President and CEO of the Company.  “Additionally, for the full year, we are very pleased that our pro forma pre-tax income increased by $1 million, or 4.05%.  This was achieved in spite of incurring costs associated with launching into two new markets and modernizing our Oklahoma City branch and headquarters.”

On September 5, 2019, our largest shareholders, the Haines Family Trusts, contributed approximately 6.5% of their shares to the Company.  Subsequently, the Company immediately issued those shares to certain executive officers, which was charged as compensation expense through the income statement of the Company. This previously announced transaction was recorded as a one-time, non-cash expense; however, because the shares were simultaneously contributed to the Company by the Haines Family Trusts, the transaction had a virtual net-zero impact to shareholders’ equity.

Excluding the one-time, extraordinary expense related to the stock transfer outlined above, net income would have been $20.0 million and for the year ending December 31, 2019.  Illustrated below is a reconciliation of pro forma net income through the year ended December 31, 2019.

   
For the Year Ended
December 31,
             
   
2019
   
2018
   
$ Change
   
% Change
 
(Dollars in thousands)
                       
Pro Forma Net Income
                       
Total Interest Income
 
$
51,709
   
$
46,800
   
$
4,909
     
10.49
%
Total Interest Expense
   
9,516
     
7,169
     
2,347
     
32.73
%
Net Interest Margin
   
42,193
     
39,631
     
2,562
     
6.47
%
Provision for Loan Losses
  $ -
    $
200
    $
(200
)
       
Total Noninterest Income
 
$
1,284
   
$
1,331
   
$
(47
)
   
(3.51
%)
                                 
Total Noninterest Expense
 
$
28,432
   
$
14,966
   
$
13,466
     
89.98
%
Stock Transfer Compensation Expense (1)
   
(11,796
)
   
-
     
(11,796
)
       
Pro Forma Noninterest Expense
   
16,636
     
14,966
     
1,670
     
11.16
%
                                 
Pro Forma Pre-Tax Income
 
$
26,842
   
$
25,796
   
$
1,046
     
4.05
%
                                 
Pro Forma Income Tax Expense
 
$
6,836
   
$
5,719
   
$
1,117
     
19.53
%
                                 
Pro Forma Net After-Tax Income
 
$
20,006
   
$
20,077
   
$
(71
)
   
(0.36
%)

(1)
Compensation expense includes $168,000 in payroll taxes.

Additional Highlights

For the three months ended December 31, 2019 compared to three months ended December 31, 2018:


-
Interest income on loans, including loan fee income, totaled $12.3 million, a 4.33% increase

-
Average loans of $692.3 million, a 15.3% increase

For the year ended December 31, 2019 compared to the year ended December 31, 2018:


-
Yield on average earning assets, including loan fee income, of 6.55%, an increase of 1.10%

-
Interest income on loans, including loan fee income, totaled $48.2 million, a 8.86% increase

-
Average loans of $636.3 million, a 8.98% increase

-
Total loans of  699.5 million, a 18.14 increase

-
Core deposits of $678.1 million, a 10.24% 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 December 31, 2019 the Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.65%, 14.28%, and 15.42% respectively for the Bank.  At December 31, 2019 the Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.49%, 14.06%, and 15.20% 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 tax-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 45.5% and 22.2% in 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
December 31,
   
For the Year ended
December 31,
 
(Dollars in thousands, except per share data)
 
2019
   
2018
   
2019
   
2018
 
Loan interest income (excluding loan fees)
                       
Total loan interest income, including loan fee income
 
$
12,299
   
$
11,789
   
$
48,200
   
$
44,279
 
Loan fee income
   
(944
)
   
(1,229
)
   
(4,443
)
   
(5,121
)
Loan interest income excluding loan fee income
 
$
11,355
   
$
10,560
   
$
43,757
   
$
39,158
 
                                 
Average total loans
 
$
692,286
   
$
600,400
   
$
636,274
   
$
583,821
 
Yield on loans (including loan fee income)
   
7.05
%
   
7.79
%
   
7.58
%
   
7.58
%
Yield on loans (excluding loan fee income)
   
6.51
%
   
6.98
%
   
6.88
%
   
6.71
%
                                 
Net interest margin (excluding loan fees)
                               
Net interest income
 
$
10,658
   
$
10,530    
$
43,193
   
$
39,631
 
Loan fee income
   
(944
)
   
(1,229
)
   
(4,443
)
   
(5,121
)
Net interest income excluding loan fees
 
$
9,714
   
$
9,301    
$
37,750
   
$
34,510
 
                                 
Average earning assets
 
$
837,252
   
$
760,869
   
$
789,009
   
$
721,935
 
Net interest margin (including loan fee income)
   
5.05

   
5.49
%
   
5.35
%
   
5.49
%
Net interest margin (excluding loan fee income)
   
4.60

   
4.85
%
   
4.78
%
    4.78
%
                                 
Pre-tax, pre-provision net earnings
                               
Net income before income taxes
 
$
6,358
   
$
6,753
   
$
15,045    
$
25,797
 
Plus: Provision (reversal of) for loan losses
   
-
      (100 )    
-
     
(200
)
Pre-tax, pre-provision net earnings
 
$
6,358
   
$
6,853
   
$
15,045    
$
25,997
 
                                 
Adjusted provision for income tax
                               
Net income before income taxes
 
$
6,358
   
$
6,753
   
$
15,045
   
$
25,797
 
Total effective adjusted tax rate
   
29.6
%
   
17.7
%
   
45.5
%
   
22.2
%
Adjusted provision for income taxes
 
$
1,879
   
$
1,192
   
$
6,844
   
$
5,720
 
                                 
Tax-adjusted net income
                               
Net income before income taxes
 
$
6,358
   
$
6,753
   
$
15,045    
$
25,797
 
Adjusted provision for income taxes
   
1,879
     
1,192
     
6,844
     
5,720
 
Tax-adjusted net income
 
$
4,479
   
$
5,561
   
$
8,201
   
$
20,077
 
                                 
Tax-adjusted ratios and per share data
                               
Tax-adjusted net income (numerator)
 
$
4,479
   
$
5,561
   
$
8,201    
$
20,077
 
                                 
Average assets (denominator)
 
$
845,510
   
$
769,170
   
$
798,528
   
$
730,564
 
Tax-adjusted return on average assets
   
2.10
%
   
2.87
%
   
1.03
%
   
2.75
%
                                 
Average shareholders' equity (denominator)
 
$
102,691
   
$
85,790
   
$
97,430
   
$
78,148
 
Tax-adjusted return on average shareholders' equity
   
17.31
%
   
25.72
%
   
8.42
%
   
25.69
%
                                 
Average tangible common equity (denominator)
 
$
100,872
   
$
83,763
   
$
95,537
   
$
76,046  
Tax-adjusted return on average tangible common equity
   
17.62
%
    26.34
%
   
8.58
%
    26.40
%
                                 
Weighted average common shares outstanding basic (denominator)
   
10,057,506
     
10,187,500
      10,145,032      
8,105,856
 
Tax-adjusted net income per common share--basic
 
$
0.45    
$
0.55
   
$
0.81
   
$
2.48  
                                 
Weighted average common shares outstanding diluted (denominator)
   
10,059,208
     
10,322,193
      10,147,311       8,237,638  
Tax-adjusted net income per common share--diluted
 
$
0.45
   
$
0.54
   
$
0.81    
$
2.44  
Pro forma weighted average common shares outstanding basic (denominator)
   
10,206,931
             
10,192,930
         
Pro Forma tax-adjusted net income per common share--basic
 
$
0.46
           
$
1.96
         
                                 
Pro forma weighted average common shares outstanding diluted (denominator)
   
10,205,229
              10,192,930          
Pro forma tax-adjusted net income per common share--diluted
 
$
0.46
           
$
1.96
         
                                 
Tangible assets
                               
Total assets
 
$
866,392
   
$
770,511                  
Less: Goodwill and intangibles
   
(1,789
)
   
(1,995
)
               
Tangible assets
 
$
864,603
   
$
768,516
                 
                                 
Tangible shareholders' equity
                               
Total shareholders' equity
 
$
100,126
   
$
88,467
                 
Less: Goodwill and intangibles
   
(1,789
)
   
(1,995
)
               
Tangible shareholders' equity
 
$
98,337
   
$
86,472                  
                                 
Tangible shareholders' equity
                               
Tangible shareholders' equity (numerator)
 
$
98,337
   
$
86,472                  
Tangible assets (denominator)
 
$
864,603
   
$
768,516                  
Tangible common equity to tangible assets
   
11.37
%
   
11.25
%
               
                                 
End of period common shares outstanding
   
10,057,506
     
10,187,500
                 
Book value per share
 
$
9.96
   
$
8.68
                 
Tangible book value per share
 
$
9.78
   
$
8.49
                 
Total shareholders' equity to total assets
   
11.56
%
   
11.48
%
               


   
Net Interest Margin Excluding Loan Fee Income
 
   
For the Three Months Ended December 3,1
 
   
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)
 
$
143,604
   
$
674
      1.86
%
 
$
159,215
   
$
795
     
1.98
%
Investment securities(2)
   
1,073
     
23
     
8.50
     
1,055
     
     
0.00
 
Loans held for sale
   
289
     
     
0.00
     
199
     
     
0.00
 
Total loans(3)
   
692,286
     
11,355
     
6.51
     
600,400
     
10,560
     
6.98
 
Total interest-earning assets
   
837,252
     
12,052
      5.71      
760,869
     
11,355
     
5.92
 
Noninterest-earning assets
   
8,258
                     
8,301
                 
Total assets
 
$
845,510
                   
$
769,170
                 
                                                 
Funding sources:
                                               
Interest-bearing liabilities:
                                               
Deposits:
                                               
Transaction accounts
 
$
314,106
     
1,133
     
1.43
%
 
$
259,614
     
1,155
     
1.77
%
Time deposits
   
213,716
     
1,205
     
2.24
     
196,696
     
899
     
1.81
 
Total interest-bearing deposits
   
527,822
     
2,338
     
1.76
     
456,310
     
2,054
     
1.79
 
Other borrowings
   
     
     
0.00
     
     
     
 
Total interest-bearing liabilities
   
527,822
     
2,338
     
1.76
     
456,310
     
2,054
     
1.79
 
                                                 
Noninterest-bearing liabilities:
                                               
Noninterest-bearing deposits
   
210,986
                     
221,716
                 
Other noninterest-bearing liabilities
   
4,011
                     
5,354
                 
Total noninterest-bearing liabilities
   
214,997
                     
227,070
                 
Shareholders’ equity
   
102,691
                     
85,790
                 
Total liabilities and shareholders’ equity
 
$
845,510
                   
$
769,170
                 
                                                 
Net interest income including loan fee income
         
$
9,714                    
$
9,301
         
Net interest spread including loan fee income(4)
                   
3.95
%
                   
4.13
%
Net interest margin including loan fee income
                   
4.60
%
                   
4.85
%


   
Net Interest Margin With Loan Fee Income
 
   
For the Three Months Ended December 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)
 
$
143,604
   
$
674      
1.80
%
 
$
159,215
   
$
795
     
1.98
%
Investment securities(2)
   
1,073
     
23
     
8.50
     
1,055
     
     
0.00
 
Loans held for sale
   
289
     
     
0.00
     
199
     
     
0.00
 
Total loans(3)
   
692,286
     
12,299
     
7.05
     
600,400
     
11,789
     
7.79
 
Total interest-earning assets
   
837,252
      12,996       6.16      
760,869
     
12,584
     
6.56
 
Noninterest-earning assets
   
8,258
                     
8,301
                 
Total assets
 
$
845,510
                   
$
769,170
                 
                                                 
Funding sources:
                                               
Interest-bearing liabilities:
                                               
Deposits:
                                               
Transaction accounts
 
$
314,106
     
1,133
     
1.43
%
 
$
259,614
     
1,155
     
1.77
%
Time deposits
   
213,716
     
1,205
     
2.24
     
196,696
     
899
     
1.81
 
Total interest-bearing deposits
   
527,822
     
2,338
     
1.76
     
456,310
     
2,054
     
1.79
 
Other borrowings
   
     
     
0.00
     
     
     
0.00
 
Total interest-bearing liabilities
   
527,822
     
2,338
     
1.76
     
456,310
     
2,054
     
1.79
 
                                                 
Noninterest-bearing liabilities:
                                               
Noninterest-bearing deposits
   
210,986
                     
221,716
                 
Other noninterest-bearing liabilities
   
4,011
                     
5,354
                 
Total noninterest-bearing liabilities
   
214,997
                     
227,070
                 
Shareholders’ equity
   
102,691
                     
85,790
                 
Total liabilities and shareholders’ equity
 
$
845,510
                   
$
769,170
                 
                                                 
Net interest income excluding loan fee income
         
$
10,658                    
$
10,530
         
Net interest spread excluding loan fee income(4)
                    4.40
%
                   
4.78
%
Net interest margin excluding loan fee income
                   
5.05
%
                   
5.49
%

(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 Excluding Loan Fee Income
 
   
For the Year Ended December 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)
 
$
151,434
   
$
3,459
     
2.28
%
 
$
136,880
   
$
2,521
     
1.84
%
Investment securities(2)
   
1,065
     
50
     
4.69
     
1,052
     
     
0.00
 
Loans held for sale
   
236
     
     
0.00
     
182
     
     
0.00
 
Total loans(3)
   
636,274
      43,757      
6.88
     
583,821
     
39,158
     
6.71
 
Total interest-earning assets
   
789,009
      47,266      
5.99
     
721,935
     
41,679
     
5.77
 
Noninterest-earning assets
   
9,519
                     
8,629
                 
Total assets
 
$
798,528
                   
$
730,564
                 
                                                 
Funding sources:
                                               
Interest-bearing liabilities:
                                               
Deposits:
                                               
Transaction accounts
 
$
295,576
      5,057      
1.71
%
 
$
240,881
     
3,584
     
1.49
%
Time deposits
   
208,375
     
4,459
     
2.14
     
220,023
     
3,410
     
1.55
 
Total interest-bearing deposits
   
503,951
      9,516      
1.89
     
460,904
     
6,994
     
1.52
 
Other borrowings
   
     
     
0.00
     
3,652
     
175
     
4.79
 
Total interest-bearing liabilities
   
503,951
      9,516      
1.89
     
464,556
     
7,169
     
1.54
 
                                                 
Noninterest-bearing liabilities:
                                               
Noninterest-bearing deposits
   
192,562
                     
183,750
                 
Other noninterest-bearing liabilities
   
4,585
                     
4,110
                 
Total noninterest-bearing liabilities
   
197,147
                     
187,860
                 
Shareholders’ equity
   
97,430
                     
78,148
                 
Total liabilities and shareholders’ equity
 
$
798,528
                   
$
730,564
                 
                                                 
Net interest income excluding loan fee income
         
$
37,750                    
$
34,510
         
Net interest spread excluding loan fee income(4)
                   
4.10
%
                   
4.23
%
Net interest margin excluding loan fee income
                   
4.78
%
                   
4.78
%

(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 Year Ended December 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)
 
$
151,434
   
$
3,459
     
2.28
%
 
$
136,880
   
$
2,521
     
1.84
%
Investment securities(2)
   
1,065
     
50
     
4.69
     
1,052
     
     
0.00
 
Loans held for sale
    236      
     
0.00
     
182
     
     
0.00
 
Total loans(3)
   
636,274
      48,200      
7.58
     
583,821
     
44,279
     
7.58
 
Total interest-earning assets
   
789,009
      51,709      
6.55
     
721,935
     
46,800
     
6.48
 
Noninterest-earning assets
   
9,519
                     
8,629
                 
Total assets
 
$
798,528
                   
$
730,564
                 
                                                 
Funding sources:
                                               
Interest-bearing liabilities:
                                               
Deposits:
                                               
Transaction accounts
 
$
295,576
      5,057      
1.71
%
 
$
240,881
     
3,584
     
1.49
%
Time deposits
   
208,375
     
4,459
     
2.14
     
220,023
     
3,410
     
1.55
 
Total interest-bearing deposits
   
503,951
      9,516      
1.89
     
460,904
     
6,994
     
1.52
 
Other borrowings
   
     
     
0.00
     
3,652
     
175
     
4.79
 
Total interest-bearing liabilities
   
503,951
      9,516      
1.89
     
464,556
     
7,169
     
1.54
 
                                                 
Noninterest-bearing liabilities:
                                               
Noninterest-bearing deposits
   
192,562
                     
183,750
                 
Other noninterest-bearing liabilities
   
4,585
                     
4,110
                 
Total noninterest-bearing liabilities
   
197,147
                     
187,860
                 
Shareholders’ equity
   
97,430
                     
78,148
                 
Total liabilities and shareholders’ equity
 
$
798,528
                   
$
730,564
                 
                                                 
Net interest income including loan fee income
         
$
42,193                    
$
39,631
         
Net interest spread including loan fee income(4)
                   
4.67
%
                   
4.94
%
Net interest margin including loan fee income
                   
5.35
%
                   
5.49
%

(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
 
2019
   
December 31,
 
   
December 31
   
September 30
   
2018
 
                   
Cash and due from banks
 
$
117,128
   
$
110,594
   
$
128,090
 
Interest-bearing time deposits in other banks
   
30,147
     
31,890
     
31,759
 
Loans, net
    699,458      
666,755
     
592,078
 
Loans held for sale
    1,031      
-
     
512
 
Premises and equipment, net
   
9,624
     
8,395
     
7,753
 
Nonmarketable equity securities
   
1,100
     
1,072
     
1,055
 
Foreclosed assets held for sale
   
-
     
77
     
110
 
Goodwill and intangibles
   
1,789
     
1,840
     
1,995
 
Interest receivable and other assets
   
6,115
     
6,198
     
7,159
 
                         
Total assets
 
$
866,392
   
$
826,821
   
$
770,511
 
                         
Liabilities and Shareholders’ Equity
                       
                         
Deposits
                       
Noninterest-bearing
 
$
219,221
   
$
202,989
   
$
201,159
 
Interest-bearing
   
538,262
     
519,145
     
474,743
 
                         
Total deposits
   
757,483
     
722,134
     
675,902
 
                         
Income taxes payable
   
-
     
-
     
1,913
 
Interest payable and other liabilities
   
8,783
     
4,072
     
4,229
 
                         
Total liabilities
   
766,266
     
726,206
     
682,044
 
                         
Common stock
   
101
     
101
     
102
 
Additional paid-in capital
   
92,391
     
92,353
     
80,275
 
Retained earnings
   
7,610
     
8,161
     
8,090
 
Accumulated Other Comprehensive Income
   
24
     
-
     
-
 
                         
Total shareholders’ equity
   
100,126
     
100,615
     
88,467
 
 
                       
Total liabilities and shareholders’ equity
 
$
866,392
   
$
826,821
   
$
770,511
 


Bank7 Corp.
Consolidated Statements of Income

 
 
Unaudited as of
       
 
 
Quarter Ended
   
Year Ended
 
 
 
2019
   
2018
   
2019
   
2018
 
Dollars in thousands, exceper per share data
 
December 31
   
September 30
   
December 31
   
December 31
   
December 31
 
Interest Income
                             
Loans, including fees
 
$
12,299
   
$
12,179
   
$
11,789
   
$
48,200    
$
44,279
 
Interest-bearing time deposits in other banks
   
295
     
500
     
150
     
1,709
     
588
 
Interest-bearing deposits in other banks
   
402
     
392
     
645
     
1,800
     
1,933
 
 
                                       
Total interest income
   
12,996
     
13,071
     
12,584
      51,709      
46,800
 
 
                                       
Interest Expense
                                       
Deposits
   
2,338
     
2,471
     
2,054
     
9,516
     
6,994
 
Other borrowings
   
-
     
-
     
-
     
-
     
175
 
 
                                       
Total interest expense
   
2,338
     
2,471
     
2,054
     
9,516
     
7,169
 
 
                                       
Net Interest Income
   
10,658
     
10,600
     
10,530
      42,193      
39,631
 
 
                                       
Provision for Loan Losses
   
-
     
-
     
100
     
-
     
200
 
 
                                       
Net Interest Income After Provision for Loan Losses
   
10,658
     
10,600
     
10,430
      42,193      
39,431
 
 
                                       
Noninterest Income
                                       
Secondary market income
   
18
     
69
     
39
     
164
     
212
 
Service charges on deposit accounts
   
113
     
110
     
86
     
392
     
347
 
Other
   
126
     
330
     
137
     
728
     
772
 
 
                                       
Total noninterest income
   
257
     
509
     
262
     
1,284
     
1,331
 
 
                                       
Noninterest Expense
                                       
Salaries and employee benefits
   
2,473
     
14,256
     
2,035
     
21,265
     
8,113
 
Furniture and equipment
   
223
     
229
     
193
     
829
     
684
 
Occupancy
   
520
     
436
     
207
     
1,677
     
1,310
 
Data and item processing
   
264
     
276
     
250
     
1,078
     
966
 
Accounting, marketing and legal fees
   
250
     
218
     
87
     
757
     
305
 
Regulatory assessments
   
32
     
31
     
146
     
126
     
542
 
Advertising and public relations
   
239
     
71
     
140
     
588
     
553
 
Travel, lodging and entertainment
   
81
     
153
     
81
     
368
     
699
 
Other
   
475
     
402
     
800
     
1,744
     
1,793
 
 
                                       
Total noninterest expense
   
4,557
     
16,072
     
3,939
     
28,432
     
14,965
 
 
                                       
Income Before Taxes
   
6,358
     
(4,963
)
   
6,753
     
15,045
     
25,797
 
Income tax expense
   
1,879
     
1,556
     
1,192
     
6,844
     
797
 
Net Income
 
$
4,479
   
$
(6,519
)
 
$
5,561
   
$
8,201
   
$
25,000
 
 
                                       
Earnings per common share - basic
 
$
0.45
   
$
(0.64
)
 
$
0.55
   
$
0.81
   
$
3.08
 
Diluted earnings per common share
   
0.45
     
(0.64
)
   
0.54
     
0.81
     
3.03
 
Weighted average common shares outstanding - basic
   
10,057,506
     
10,149,007
     
10,187,500
     
10,145,032
     
8,105,856
 
Weighted average common shares outstanding - diluted
   
10,059,208
     
10,161,778
     
10,322,193
     
10,147,311
     
8,237,638
 


About Bank7 Corp.

We are Bank7 Corp., a bank holding company headquartered in Oklahoma City, Oklahoma. Through our wholly-owned subsidiary, Bank7, we operate nine 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 fourth quarter and full year 2019 results, which will be broadcast live over the Internet, on Thursday, January 30 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://www.webcaster4.com/Webcast/Page/2179/32829.   For those not able to participate in the live call, an archive of the webcast will be available at https://www.webcaster4.com/Webcast/Page/2179/32829 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 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 tax-adjusted net income, tax-adjusted earnings per share, tax-adjusted return on average assets and tax-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