EX-99.1 2 brhc10043254_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1


FOR IMMEDIATE RELEASE: Bank7 Corp. Announces Q3 2022 Earnings

Oklahoma City, October 26, 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 September 30, 2022.  “We are pleased to announce another excellent quarter, as evidenced by the Company’s record net income and earnings per share. In addition to our talented bankers, our position in dynamic geographic markets, strong loan growth, and asset sensitive balance sheet, continues to produce outstanding results.  Moving forward, we are focused on maintaining such results through organic growth and strategic acquisitions,” said Thomas L. Travis, President and CEO of the Company. 

Three months ended September 30, 2022 compared to three months ended June 30, 2022


 -
Net income of $8.04 million compared to $7.02 million, an increase of 14.48%

-
Diluted earnings per share of $0.87 compared to $0.76, an increase of 14.47%

-
Total assets of $1.58 billion compared to $1.49 billion, an increase of 6.28%

-
Total loans of $1.23 billion compared to $1.15 billion, an increase of 7.01%

-
PPE of $12.76 million compared to $9.53 million, an increase of 34.15%

-
Total interest income of $21.69 million compared to $16.67 million, an increase of 30.10%

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, 2022, the Bank’s Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 9.01%, 11.04%, and 12.10%, respectively.  On September 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 9.01%, 11.03%, and 12.09%, 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
  
September 30, 2022
(unaudited)
    
December 31,
2021
  
             
Cash and due from banks
  
$
147,241
    
$
195,359
  
Federal funds sold
    
-
      
9,493
  
Cash and cash equivalents
    
147,241
      
204,852
  
Interest-bearing time deposits in other banks
    
1,494
      
3,237
  
Available-for-sale debt securities
    
174,534
      
84,808
  
Loans, net of allowance for loan losses of $13,153 and $10,316 at September 30, 2022 and December 31, 2021, respectively
    
1,219,998
      
1,018,085
  
Loans held for sale, at fair value
    
204
      
464
  
Premises and equipment, net
    
13,352
      
17,257
  
Nonmarketable equity securities
    
1,193
      
1,202
  
Core deposit intangibles
    
1,412
      
1,643
  
Goodwill
    
8,068
      
8,479
  
Interest receivable and other assets
    
13,456
      
10,522
  
                 
Total assets
  
$
1,580,952
    
$
1,350,549
  
                 
Liabilities and Shareholders’ Equity
                
                 
Deposits
                
Noninterest-bearing
  
$
497,768
    
$
366,705
  
Interest-bearing
    
939,568
      
850,766
  
                 
Total deposits
    
1,437,336
      
1,217,471
  
                 
Income taxes payable
    
446
      
-
  
Interest payable and other liabilities
    
7,351
      
5,670
  
                 
Total liabilities
    
1,445,133
      
1,223,141
  
                 
Shareholders’ equity
                
Common stock, $0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,115,739 and 9,071,417 at September 30, 2022 and December 31, 2021 respectively
    
91
      
91
  
                 
Additional paid-in capital
    
95,054
      
94,024
  
Retained earnings
    
51,123
      
33,149
  
Accumulated other comprehensive income (loss)
    
(10,449
)
    
144
  
                 
Total shareholders’ equity
    
135,819
      
127,408
  
 
                
Total liabilities and shareholders’ equity
  
$
1,580,952
    
$
1,350,549
  

   
Three months ended
September 30,
(unaudited)
    
Nine months ended
September 30,
(unaudited)
  
   
2022
    
2021
    
2022
    
2021
  
Interest Income
                        
Loans, including fees
  
$
20,466
    
$
13,927
    
$
50,597
    
$
41,377
  
Interest-bearing time deposits in other banks
    
10
      
35
      
39
      
141
  
Debt securities, taxable
    
690
      
-
      
1,625
      
-
  
Debt securities, tax-exempt
    
90
      
-
      
273
      
-
  
Other interest and dividend income
    
435
      
46
      
754
      
114
  
                                 
Total interest income
    
21,691
      
14,008
      
53,288
      
41,632
  
                                 
Interest Expense
                                
Deposits
    
2,646
      
729
      
4,241
      
2,376
  
                                 
Total interest expense
    
2,646
      
729
      
4,241
      
2,376
  
                                 
Net Interest Income
    
19,045
      
13,279
      
49,047
      
39,256
  
                                 
Provision for Loan Losses
    
2,348
      
750
      
2,843
      
3,325
  
                                 
Net Interest Income After Provision for Loan Losses
    
16,697
      
12,529
      
46,204
      
35,931
  
                                 
Noninterest Income
                                
Secondary market income
    
134
      
161
      
395
      
253
  
Gain (Loss) on sales, maturities, prepayments and calls of available-for-sale debt securities
    
(10
)
    
-
      
(127
)
    
-
  
Service charges on deposit accounts
    
210
      
141
      
678
      
380
  
Other
    
506
      
275
      
1,261
      
860
  
                                 
Total noninterest income
    
840
      
577
      
2,207
      
1,493
  
                                 
Noninterest Expense
                                
Salaries and employee benefits
    
3,996
      
2,946
      
12,148
      
8,685
  
Furniture and equipment
    
390
      
218
      
1,134
      
651
  
Occupancy
    
614
      
461
      
1,736
      
1,391
  
Data and item processing
    
522
      
292
      
1,468
      
857
  
Accounting, marketing and legal fees
    
340
      
150
      
782
      
447
  
Regulatory assessments
    
551
      
162
      
973
      
464
  
Advertsing and public relations
    
83
      
76
      
314
      
181
  
Travel, lodging and entertainment
    
94
      
102
      
216
      
309
  
Other
    
543
      
372
      
1,745
      
1,213
  
                                 
Total noninterest expense
    
7,133
      
4,779
      
20,516
      
14,198
  
                                 
Income Before Taxes
    
10,404
      
8,327
      
27,895
      
23,226
  
Income tax expense
    
2,363
      
2,063
      
6,646
      
5,753
  
Net Income
  
$
8,041
    
$
6,264
    
$
21,249
    
$
17,473
  
                                 
Earnings per common share - basic
  
$
0.88
    
$
0.69
    
$
2.34
    
$
1.93
  
Earnings per common share - diluted
    
0.87
      
0.69
      
2.31
      
1.92
  
Weighted average common shares outstanding - basic
    
9,100,789
      
9,052,718
      
9,095,724
      
9,051,112
  
Weighted average common shares outstanding - diluted
    
9,208,850
      
9,105,255
      
9,194,586
      
9,078,671
  
                                 
Other Comprehensive Income (Loss)
                                
Unrealized losses on securities, net of tax benefit of $1.7 million and $0 for the three months ended September 30, 2022 and 2021, respectively; $3.2 million and $0 for the nine months ended September 30, 2022 and 2021, respectively
  
$
(2,674
)
  
$
-
    
$
(10,691
)
  
$
-
  
Reclassification adjustment for realized (gain)loss included in net income, net of tax of $2 and $0 for the three months ended September 30, 2022 and 2021, respectively; $29 and $0 for the nine months ended September 30, 2022 and 2021, respectively
    
8
      
-
      
98
      
-
  
Other comprehensive loss, net of tax benefit of $1.7 million and $0 for the three months ended September 30, 2022 and 2021, respectively; $3.2 million and $0 for the nine months ended September 30, 2022 and 2021, respectively
  
$
(2,666
)
  
$
-
    
$
(10,593
)
  
$
-
  
Comprehensive Income (Loss)
  
$
5,375
    
$
6,264
    
$
10,656
    
$
17,473
  

   
Net Interest Margin
  
   
For the Nine Months Ended September 30,
  
   
2022
(unaudited)
    
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
  
$
139,133
    
$
793
      
0.76
%
  
$
124,801
    
$
236
      
0.25
%
Investment securities, taxable
    
150,180
      
1,625
      
1.45
      
1,182
      
19
      
2.15
  
Debt securities, tax exempt
    
14,820
      
273
      
2.46
      
-
      
-
      
-
  
Loans held for sale
    
686
      
-
      
-
      
501
      
-
      
-
  
Total loans(1)
    
1,103,114
      
50,597
      
6.13
      
887,353
      
41,377
      
6.23
  
Total interest-earning assets
    
1,407,933
      
53,288
      
5.06
      
1,013,837
      
41,632
      
5.49
  
Noninterest-earning assets
    
24,069
                      
5,927
                  
Total assets
  
$
1,432,002
                    
$
1,019,764
                  
                                                 
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
699,670
      
3,351
      
0.64
%
  
$
410,299
      
1,024
      
0.33
%
Time deposits
    
168,608
      
890
      
0.71
      
212,706
      
1,352
      
0.85
  
Total interest-bearing deposits
    
868,278
      
4,241
      
0.65
      
623,005
      
2,376
      
0.51
  
Total interest-bearing liabilities
    
868,278
      
4,241
      
0.65
      
623,005
      
2,376
      
0.51
  
                                                 
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
    
424,720
                      
277,308
                  
Other noninterest-bearing liabilities
    
7,128
                      
5,634
                  
Total noninterest-bearing liabilities
    
431,848
                      
282,942
                  
Shareholders’ equity
    
131,876
                      
113,817
                  
Total liabilities and shareholders’ equity
  
$
1,432,002
                    
$
1,019,764
                  
                                                 
Net interest income
          
$
49,047
                    
$
39,256
          
Net interest spread
                    
4.41
%
                    
4.98
%
Net interest margin
                    
4.66
%
                    
5.18
%

(1)
Nonaccrual loans are included in total loans

   
For the Three Months Ended September 30,
  
   
2022
(unaudited)
    
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
  
$
99,751
    
$
445
      
1.77
%
  
$
120,078
    
$
79
      
0.26
%
Debt securities, taxable-equivalent
    
163,699
      
690
      
1.67
      
1,187
      
2
      
0.67
  
Debt securities, tax exempt
    
21,811
      
90
      
1.64
      
-
      
-
      
-
  
Loans held for sale
    
1,281
      
-
      
-
      
610
      
-
      
-
  
Total loans(1)
    
1,213,080
      
20,466
      
6.69
      
924,391
      
13,927
      
5.98
  
Total interest-earning assets
    
1,499,622
      
21,691
      
5.74
      
1,046,266
      
14,008
      
5.31
  
Noninterest-earning assets
    
23,197
                      
5,607
                  
Total assets
  
$
1,522,819
                    
$
1,051,873
                  
                                                 
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
761,927
      
2,338
      
1.22
%
  
$
401,843
      
332
      
0.33
%
Time deposits
    
152,910
      
308
      
0.80
      
220,189
      
397
      
0.72
  
Total interest-bearing deposits
    
914,837
      
2,646
      
1.15
      
622,032
      
729
      
0.46
  
Total interest-bearing liabilities
  
$
914,837
      
2,646
      
1.15
    
$
622,032
      
729
      
0.46
  
                                                 
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
  
$
463,882
                    
$
304,063
                  
Other noninterest-bearing liabilities
    
8,132
                      
6,633
                  
Total noninterest-bearing liabilities
    
472,014
                      
310,696
                  
Shareholders’ equity
    
135,968
                      
119,145
                  
Total liabilities and shareholders’ equity
  
$
1,522,819
                    
$
1,051,873
                  
                                                 
Net interest income
          
$
19,045
                    
$
13,279
          
Net interest spread
                    
4.99
%
                    
4.85
%
Net interest margin
                    
5.04
%
                    
5.04
%

(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, October 26, 2022 at 9:00 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/N4zQYGV2vjL. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/N4zQYGV2vjL 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