EX-99.1 2 brhc10040012_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1
 

FOR IMMEDIATE RELEASE: Bank7 Corp. Announces Q2 2022 Earnings

Oklahoma City, July 27, 2022 – 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

Assets
  
June 30, 2022
(unaudited)
    
December 31, 2021
  
             
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 June 30, 2022 and December 31, 2021 respectively
    
91
      
91
  
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 three months ended June 30, 2022 and 2021, respectively; $10,000 and $0 for the six months ended June 30, 2022 and 2021, respectively)
    
10
      
-
      
(117
)
    
-
  
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
  
   
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
  
$
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
  
   
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
  
$
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 Travis
President & CEO
(405) 810-8600