EX-99.1 2 ef20019967_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1
 

FOR IMMEDIATE RELEASE: Bank7 Corp. Announces Q4 2023 and Full Year Earnings

Oklahoma City, January 29, 2024 – Bank7 Corp. (NASDAQ: BSVN) (“the Company”), the parent company of Oklahoma City-based Bank7 (the “Bank”), today reported unaudited results for the quarter and year ended December 31, 2023.  “We are pleased to report another year of record PPE.  Our success continues to be driven by our long-term and broad-based deposit relationships, our debt-free and liquid balance sheet, and our disciplined approach to cost controls.  With the exception of one large credit, we continue to benefit from strong asset quality and remain confident that the overall portfolio is indicative of our historical low loan loss results,” said Thomas L. Travis, President and CEO of the Company.

For the three months ended December 31, 2023 compared to the three months ended December 31, 2022:


 -
Net income of $1.1 million compared to $8.4 million, a decrease of 87.24%

-
Earnings per share of $0.12 compared to $0.91, a decrease of 87.36%

-
Total assets of $1.8 billion compared to $1.6 billion, an increase of 11.84%

-
Total loans of $1.4 billion compared to $1.3 billion, an increase of 7.11%

-
PPE of $17.1 million compared to $13.0 million, an increase of 31.41%

-
Total interest income of $32.4 million compared to $25.5 million, an increase of 27.25%

For the year ended December 31, 2023 compared to year ended December 31, 2022


 -
Net income of $28.3 million compared to $29.6 million, a decrease of 4.60%

-
Earnings per share of $3.05 compared to $3.22, a decrease of 5.22%

-
PPE of $58.4 million compared to $43.9 million, an increase of 33.14%

-
Total interest income of $121.5 million compared to $78.7 million, an increase of 54.34%

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 December 31, 2023, the Bank’s Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 9.54%, 11.50%, and 12.75%, respectively.  On December 31, 2023, on a consolidated basis, the Company’s Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 9.54%, 11.49%, and 12.74%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.  Non-GAAP metric pre-provision pre-tax earnings (“PPE”) is calculated as net income, add back: income tax expense, provision for credit losses, and loss on sales, prepayments, and calls of available-for-sale debt securities.

Bank7 Corp.
Consolidated Balance Sheets

   
December 31,
  
Assets
  
2023
(unaudited)
    
2022
  
             
Cash and due from banks
  
$
181,042
    
$
109,115
  
Interest-bearing time deposits in other banks
    
17,679
      
5,474
  
Available-for-sale debt securities
    
169,487
      
173,165
  
Loans, net of allowance for credit losses of $19,691 and $14,734 at December 31, 2023 and December 31, 2022, respectively
    
1,341,148
      
1,255,722
  
Loans held for sale, at fair value
    
718
      
-
  
Premises and equipment, net
    
14,942
      
13,106
  
Nonmarketable equity securities
    
1,283
      
1,209
  
Core deposit intangibles
    
1,031
      
1,336
  
Goodwill
    
8,458
      
8,603
  
Interest receivable and other assets
    
35,878
      
16,439
  
                 
Total assets
  
$
1,771,666
    
$
1,584,169
  
                 
Liabilities and Shareholders’ Equity
                
                 
Deposits
                
Noninterest-bearing
  
$
482,349
    
$
441,509
  
Interest-bearing
    
1,109,042
      
989,891
  
                 
Total deposits
    
1,591,391
      
1,431,400
  
                 
Income taxes payable
    
302
      
1,054
  
Interest payable and other liabilities
    
9,647
      
7,615
  
                 
Total liabilities
    
1,601,340
      
1,440,069
  
                 
Shareholders’ equity
                
Common stock, $0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,197,696 and 9,131,973 at December 31, 2023 and December 31, 2022 respectively
    
92
      
91
  
                 
Additional paid-in capital
    
97,415
      
95,263
  
Retained earnings
    
78,964
      
58,049
  
Accumulated other comprehensive income (loss)
    
(6,145
)
    
(9,303
)
                 
Total shareholders’ equity
    
170,326
      
144,100
  
 
                
Total liabilities and shareholders’ equity
  
$
1,771,666
    
$
1,584,169
  

     
Three Months Ended
December 31,
      
Twelve Months Ended
December 31,
  
 
   
2023
(unaudited)
    
2022
    
2023
(unaudited)
    
2022
  
Interest Income
                        
Loans, including fees
  
$
28,727
    
$
23,806
    
$
109,843
    
$
74,403
  
Interest-bearing time deposits in other banks
    
248
      
7
      
519
      
46
  
Debt securities, taxable
    
685
      
688
      
2,791
      
2,313
  
Debt securities, tax-exempt
    
77
      
87
      
330
      
360
  
Other interest and dividend income
    
2,664
      
874
      
8,061
      
1,627
  
                                 
Total interest income
    
32,401
      
25,462
      
121,544
      
78,749
  
                                 
Interest Expense
                                
Deposits
    
11,104
      
5,081
      
38,998
      
9,322
  
                                 
Total interest expense
    
11,104
      
5,081
      
38,998
      
9,322
  
                                 
Net Interest Income
    
21,297
      
20,381
      
82,546
      
69,427
  
                                 
Provision for Credit Losses
    
15,500
      
1,625
      
21,145
      
4,468
  
                                 
Net Interest Income After Provision for Credit Losses
    
5,797
      
18,756
      
61,401
      
64,959
  
                                 
Noninterest Income
                                
Mortgage lending income
    
159
      
91
      
331
      
486
  
Loss on sales, prepayments, and calls of available-for-sale debt securities
    
(1
)
    
-
      
(16
)
    
(127
)
Service charges on deposit accounts
    
222
      
222
      
869
      
900
  
Other
    
6,389
      
419
      
8,058
      
1,680
  
                                 
Total noninterest income
    
6,769
      
732
      
9,242
      
2,939
  
                                 
Noninterest Expense
                                
Salaries and employee benefits
    
3,086
      
4,892
      
17,385
      
17,040
  
Furniture and equipment
    
241
      
334
      
995
      
1,468
  
Occupancy
    
708
      
593
      
2,689
      
2,329
  
Data and item processing
    
450
      
600
      
1,730
      
2,068
  
Accounting, marketing and legal fees
    
51
      
203
      
543
      
984
  
Regulatory assessments
    
524
      
371
      
1,537
      
1,344
  
Advertsing and public relations
    
154
      
164
      
427
      
477
  
Travel, lodging and entertainment
    
118
      
147
      
374
      
363
  
Other
    
5,673
      
825
      
7,740
      
2,568
  
                                 
Total noninterest expense
    
11,005
      
8,129
      
33,420
      
28,641
  
                                 
Income Before Taxes
    
1,561
      
11,359
      
37,223
      
39,257
  
Income tax expense
    
491
      
2,973
      
8,948
      
9,619
  
Net Income
  
$
1,070
    
$
8,386
    
$
28,275
    
$
29,638
  
                                 
Earnings per common share - basic
  
$
0.12
    
$
0.92
    
$
3.09
    
$
3.26
  
Earnings per common share - diluted
    
0.12
      
0.91
      
3.05
      
3.22
  
Weighted average common shares outstanding - basic
    
9,188,888
      
9,118,728
      
9,161,565
      
9,101,523
  
Weighted average common shares outstanding - diluted
    
9,274,960
      
9,232,333
      
9,264,307
      
9,204,716
  
                                 
Other Comprehensive Income (Loss)
                                
Unrealized gains(losses) on securities, net of (tax expense)tax benefit of ($1.9 million), $2.8 million, and $0 for the years ended December 31, 2023, 2022, and 2021, respectively
  
$
2,933
    
$
1,146
    
$
3,146
    
$
(9,543
)
Reclassification adjustment for realized loss included in net income net of tax of $4, $31, and $0 for the years ended 2023, 2022, and 2021, respectively
    
1
      
-
      
12
      
96
  
Other comprehensive income(loss)
  
$
2,934
    
$
1,146
    
$
3,158
    
$
(9,447
)
Comprehensive Income
  
$
4,004
    
$
9,532
    
$
31,433
    
$
20,191
  

 
  
Net Interest Margin
  
 
  
For the Twelve Months Ended
  
 
  
2023
(unaudited)
    
2022
  
 
  
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
  
$
174,600
    
$
8,580
      
4.91
%
  
$
129,624
    
$
1,673
      
1.29
%
Debt securities, taxable-equivalent
    
152,094
      
2,791
      
1.84
      
145,915
      
2,313
      
1.59
  
Debt securities, tax exempt
    
19,430
      
330
      
1.70
      
21,635
      
360
      
1.66
  
Loans held for sale
    
158
      
-
      
-
      
586
      
-
      
-
  
Total loans(1)
    
1,315,578
      
109,843
      
8.35
      
1,143,380
      
74,403
      
6.51
  
Total interest-earning assets
    
1,661,860
      
121,544
      
7.31
      
1,441,140
      
78,749
      
5.46
  
Noninterest-earning assets
    
21,236
                      
23,532
                  
Total assets
  
$
1,683,096
                    
$
1,464,672
                  
 
                                                
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
825,169
      
28,582
      
3.46
%
  
$
724,617
      
7,842
      
1.08
%
Time deposits
    
256,672
      
10,416
      
4.06
      
165,735
      
1,480
      
0.89
  
Total interest-bearing deposits
    
1,081,841
      
38,998
      
3.60
      
890,352
      
9,322
      
1.05
  
Total interest-bearing liabilities
    
1,081,841
      
38,998
      
3.60
      
890,352
      
9,322
      
1.05
  
 
                                                
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
    
433,603
                      
432,901
                  
Other noninterest-bearing liabilities
    
11,101
                      
7,520
                  
Total noninterest-bearing liabilities
    
444,704
                      
440,421
                  
Shareholders’ equity
    
156,551
                      
133,899
                  
Total liabilities and shareholders’ equity
  
$
1,683,096
                    
$
1,464,672
                  
 
                                                
Net interest income
          
$
82,546
                    
$
69,427
          
Net interest spread
                    
3.71
%
                    
4.42
%
Net interest margin
                    
4.97
%
                    
4.82
%

(1)
Nonaccrual loans are included in total loans

 
  
Net Interest Margin
  
 
  
For the Three Months Ended
  
 
  
2023
(unaudited)
    
2022
  
 
  
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
  
$
210,710
    
$
2,912
      
5.48
%
  
$
101,427
    
$
881
      
3.45
%
Debt securities, taxable-equivalent
    
150,291
      
685
      
1.81
      
154,869
      
688
      
0.76
  
Debt securities, tax exempt
    
18,250
      
77
      
1.67
      
20,247
      
87
      
1.70
  
Loans held for sale
    
284
      
-
      
-
      
291
      
-
      
-
  
Total loans(1)
    
1,362,533
      
28,727
      
8.36
      
1,262,864
      
23,806
      
7.48
  
Total interest-earning assets
    
1,742,068
      
32,401
      
7.38
      
1,539,698
      
25,462
      
6.56
  
Noninterest-earning assets
    
17,308
                      
21,937
                  
Total assets
  
$
1,759,376
                    
$
1,561,635
                  
 
                                                
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
848,990
      
8,237
      
3.85
%
  
$
798,073
      
4,491
      
2.23
%
Time deposits
    
254,460
      
2,867
      
4.47
      
157,211
      
590
      
1.49
  
Total interest-bearing deposits
    
1,103,450
      
11,104
      
3.99
      
955,284
      
5,081
      
2.11
  
Total interest-bearing liabilities
  
$
1,103,450
      
11,104
      
3.99
    
$
955,284
      
5,081
      
2.11
  
 
                                                
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
  
$
485,312
                    
$
457,753
                  
Other noninterest-bearing liabilities
    
12,895
                      
8,683
                  
Total noninterest-bearing liabilities
    
498,207
                      
466,436
                  
Shareholders’ equity
    
157,719
                      
139,915
                  
Total liabilities and shareholders’ equity
  
$
1,759,376
                    
$
1,561,635
                  
 
                                                
Net interest income
          
$
21,297
                    
$
20,381
          
Net interest spread
                    
3.39
%
                    
4.45
%
Net interest margin
                    
4.85
%
                    
5.25
%

(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 fourth quarter and full year results, which will be broadcast live over the Internet, on Monday, January 29, 2024 at 11:00 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/NXrREy72GnW. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/NXrREy72GnW 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