Oklahoma City, October 21, 2021 – 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 September 30, 2021.  “Our company continues to perform at a very high level, we are pleased to report another record quarter of net income for BSVN.  While we are proud of our earnings, capital, and liquidity strength, we also pause to acknowledge the 3-year anniversary of our IPO, and how we had confidence in our team to perform at a high level and we’ve exceeded those expectations.” said Thomas L. Travis, President and CEO of the Company. 

Three months ended September 30, 2021 compared to three months ended September 30, 2020:

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, 2021, the Bank’s Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.51%, 13.76%, and 14.82%, respectively.  On September 30, 2021, on a consolidated basis, the Company’s Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.50%, 13.74%, and 14.80%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

 

Pre-tax, pre-provision earnings 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.  We calculate our tax-adjusted net income, return on average assets, and return on average equity, and per share amounts by using a combined effective tax rate for federal and state income taxes of 24.8% and 27.2% in the third quarter of 2021 and 2020, respectively.  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 September 30,								Nine months ended September 30,
(Dollars in thousands, except per share data)		2021				2020				2021				2020
Loan interest income (excluding loan fees)
Total loan interest income, including loan fee income		$	13,927			$	12,777			$	41,377			$	39,268
Loan fee income			(1,636	)			(1,078	)			(6,154	)			(3,969	)
Loan interest income excluding loan fee income		$	12,291			$	11,699			$	35,223			$	35,299
Average total loans		$	924,391			$	847,076			$	887,353			$	807,134
Yield on loans (including loan fee income)			5.98				6.00				6.23				6.50
Yield on loans (excluding loan fee income)			5.28				5.49				5.31				5.84
Pre-tax, pre-provision net earnings
Net income before income taxes		$	8,327			$	6,101			$	23,226			$	19,567
Plus: Provision for loan losses			750				1,250				3,325				3,300
Pre-tax, pre-provision net earnings		$	9,077			$	7,351			$	26,551			$	22,867
Adjusted provision for income tax
Net income before income taxes		$	8,327			$	6,101			$	23,226			$	19,567
Total effective adjusted tax rate			24.8	%			27.2	%			24.8	%			25.8	%
Adjusted provision for income taxes		$	2,063			$	1,661			$	5,753			$	5,040
Tax-adjusted net income
Net income before income taxes		$	8,327			$	6,101			$	23,226			$	19,567
Adjusted provision for income taxes			2,063				1,661				5,753				5,040
Tax-adjusted net income		$	6,264			$	4,440			$	17,473			$	14,527
Tax-adjusted ratios and per share data
Tax-adjusted net income (numerator)		$	6,264			$	4,440			$	17,473			$	14,527
Average assets (denominator)		$	1,051,873			$	967,044			$	1,019,764			$	937,849
Tax-adjusted return on average assets			2.36	%			1.83	%			2.29	%			2.07	%
Average shareholders' equity (denominator)		$	119,145			$	102,929			$	113,817			$	101,377
Tax-adjusted return on average shareholders' equity			20.86	%			17.16	%			20.53	%			19.14	%
Average tangible common equity (denominator)		$	117,679			$	101,269			$	112,305			$	99,667
Tax-adjusted return on average tangible common equity			21.12	%			17.44	%			20.80	%			19.47	%
Weighted average common shares outstanding basic (denominator)			9,052,718				9,228,128				9,051,112				9,483,540
Tax-adjusted net income per common share--basic		$	0.69			$	0.48			$	1.93			$	1.53
Weighted average common shares outstanding diluted (denominator)			9,105,255				9,228,128				9,078,671				9,483,540
Tax-adjusted net income per common share--diluted		$	0.69			$	0.48			$	1.92			$	1.53
Tangible assets
Total assets		$	1,146,230			$	973,354
Less: Goodwill and intangibles			(1,446	)			(1,634	)
Tangible assets		$	1,144,784			$	971,720
Tangible shareholders' equity
Total shareholders' equity		$	122,409			$	105,230
Less: Goodwill and intangibles			(1,446	)			(1,634	)
Tangible shareholders' equity		$	120,963			$	103,596
Tangible shareholders' equity
Tangible shareholders' equity (numerator)		$	120,963			$	103,596
Tangible assets (denominator)			1,144,784				971,720
Tangible common equity to tangible assets			10.57	%			10.66	%
End of period common shares outstanding			9,070,038				9,241,689
Book value per share		$	13.50			$	11.39
Tangible book value per share		$	13.34			$	11.21
Total shareholders' equity to total assets			10.68	%			10.81	%

		Net Interest Margin Including Loan Fee Income
		For the Three Months Ended September 30,
		2021												2020
		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)		$	120,078			$	79				0.26	%		$	111,019			$	147				0.53	%
Investment securities(2)			1,187				2				0.67				1,138				2				0.70
Loans held for sale			610				-				-				425				-				-
Total loans(3)			924,391				13,927				5.98				847,076				12,777				6.00
Total interest-earning assets			1,046,266				14,008				5.31				959,658				12,926				5.36
Noninterest-earning assets			5,607												7,386
Total assets		$	1,051,873											$	967,044
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$	401,843				332				0.33	%		$	381,572				545				0.57	%
Time deposits			220,189				397				0.72				200,961				780				1.54
Total interest-bearing deposits			622,032				729				0.46				582,533				1,325				0.90
Total interest-bearing liabilities			622,032				729				0.46				582,533				1,325				0.90
Noninterest-bearing liabilities:
Noninterest-bearing deposits		$	304,063												276,219
Other noninterest-bearing liabilities			6,633												5,363
Total noninterest-bearing liabilities			310,696												281,582
Shareholders' equity			119,145												102,929
Total liabilities and shareholders' equity		$	1,051,873											$	967,044
Net interest income including loan fee income						$	13,279											$	11,601
Net interest spread including loan fee income(4)											4.85	%											4.45	%
Net interest margin including loan fee income											5.04	%											4.81	%

 

 

 

		Net Interest Margin Excluding Loan Fee Income
		For the Nine Months Ended September 30,
		2021												2020
		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)		$	124,801			$	236				0.25	%		$	120,909			$	701				0.77	%
Investment securities(2)			1,182				19				2.15				1,109				21				2.53
Loans held for sale			501				-				-				258				-				-
Total loans(3)			887,353				35,223				5.31				807,134				35,299				5.84
Total interest-earning assets			1,013,837				35,478				4.68				929,410				36,021				5.18
Noninterest-earning assets			5,927												8,439
Total assets		$	1,019,764											$	937,849
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$	410,299				1,024				0.33	%		$	366,162				2,259				0.82	%
Time deposits			212,706				1,352				0.85				208,650				2,769				1.77
Total interest-bearing deposits			623,005				2,376				0.51				574,812				5,028				1.17
Total interest-bearing liabilities			623,005				2,376				0.51				574,812				5,028				1.17
Noninterest-bearing liabilities:
Noninterest-bearing deposits			277,308												256,429
Other noninterest-bearing liabilities			5,634												5,231
Total noninterest-bearing liabilities			282,942												261,660
Shareholders' equity			113,817												101,377
Total liabilities and shareholders' equity		$	1,019,764											$	937,849
Net interest income excluding loan fee income						$	33,102											$	30,993
Net interest spread excluding loan fee income(4)											4.17	%											4.01	%
Net interest margin excluding loan fee income											4.37	%											4.45	%

		Net Interest Margin With Loan Fee Income
		For the Nine Months Ended September 30,
		2021												2020
		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)		$	124,801			$	236				0.25	%		$	120,909			$	701				0.77	%
Investment securities(2)			1,182				19				2.15				1,109				21				2.53
Loans held for sale			501				-				-				258				-				-
Total loans(3)			887,353				41,377				6.23				807,134				39,268				6.50
Total interest-earning assets			1,013,837				41,632				5.49				929,410				39,990				5.75
Noninterest-earning assets			5,927												8,439
Total assets		$	1,019,764											$	937,849
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$	410,299				1,024				0.33	%		$	366,162				2,259				0.82	%
Time deposits			212,706				1,352				0.85				208,650				2,769				1.77
Total interest-bearing deposits			623,005				2,376				0.51				574,812				5,028				1.17
Total interest-bearing liabilities			623,005				2,376				0.51				574,812				5,028				1.17
Noninterest-bearing liabilities:
Noninterest-bearing deposits			277,308												256,429
Other noninterest-bearing liabilities			5,634												5,231
Total noninterest-bearing liabilities			282,942												261,660
Shareholders' equity			113,817												101,377
Total liabilities and shareholders' equity		$	1,019,764											$	937,849
Net interest income including loan fee income						$	39,256											$	34,962
Net interest spread including loan fee income(4)											4.98	%											4.58	%
Net interest margin including loan fee income											5.18	%											5.02	%

 

 

 

Dollars in thousands		Unaudited as of
Assets		September 30,				December 31,
		2021				2020
Cash and due from banks		$	205,762			$	153,901
Interest-bearing time deposits in other banks			5,229				16,412
Loans, net			915,393				826,974
Loans held for sale			1,002				324
Premises and equipment, net			8,775				9,151
Nonmarketable equity securities			1,193				1,172
Goodwill and intangibles			1,446				1,583
Interest receivable and other assets			7,430				7,152
Total assets		$	1,146,230			$	1,016,669
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing		$	335,316			$	246,569
Interest-bearing			683,058				658,945
Total deposits			1,018,374				905,514
Interest payable and other liabilities			5,447				3,827
Total liabilities			1,023,821				909,350
Common stock			91				90
Additional paid-in capital			93,766				93,162
Retained earnings			28,552				14,067
Total shareholders’ equity			122,409				107,319
Total liabilities and shareholders’ equity		$	1,146,230			$	1,016,669

Bank7 Corp.

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 first quarter results, which will be broadcast live over the Internet, on Thursday, October 21, 2021 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/2179/43192 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/2179/43192 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.

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.