EX-99.1 2 ef20026704_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1


FOR IMMEDIATE RELEASE: Bank7 Corp. Announces Q1 2024 Earnings

Oklahoma City, April 12, 2024 – Bank7 Corp. (NASDAQ: BSVN) ("the Company"), the parent company of Oklahoma City-based Bank7 (the "Bank"), today reported unaudited results for the quarter ended March 31, 2024.  “We are pleased with the strength of our core earnings, as evidenced by our pre-tax, pre-provision earnings (PPE).  The Company’s continued ability to exceed historical PPE is a function of our position in dynamic geographic markets, our long-term and broad-based deposit relationships, our debt-free and liquid balance sheet, and our disciplined approach to cost controls. Further, the Company’s credit quality remains a point of strength with minimal exposure to office and retail commercial real estate,” said Thomas L. Travis, President and CEO of the Company.”

For the three months ended March 31, 2024 compared to the three months ended March 31, 2023:


 -
Net income of $11.3 million compared to $9.6 million, an increase of 17.50%

-
Earnings per share of $1.21 compared to $1.04, an increase of 16.35%

-
Total assets of $1.8 billion compared to $1.7 billion, an increase of 6.89%

-
Total loans of $1.4 billion compared to $1.3 billion, an increase of 7.39%

-
PPE of $14.9 million compared to $13.0 million, an increase of 14.22%

-
Total interest income of $33.3 million compared to $27.4 million, an increase of 21.57%

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 March 31, 2024, the Bank’s Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 10.10%, 12.11%, and 13.36%, respectively.  On March 31, 2024, on a consolidated basis, the Company’s Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 10.11%, 12.11%, and 13.36%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

Non-GAAP Financial Measures:
This earnings release contains the non-GAAP financial measure pre-provision pre-tax earnings (“PPE”).  The Company’s management uses this non-GAAP measure in their analysis of the Company’s performance.  This measure adjusts GAAP performance to exclude from net income, income tax expense, provision for credit losses, and loss on sales and calls of available-for-sale debt securities.

   
For the Three Months Ended
  
   
Mar 31, 2024
    
Mar 31, 2023
  
Calculation of Pre-Provision Pre-Tax Earnings ("PPE")
  
(Dollars in thousands)
  
Net Income
  
$
3,595
    
$
2,947
  
Income Tax Expense
    
14,883
      
12,554
  
Pre-tax net income
    
14,883
      
12,554
  
Add back: Provision for credit losses
    
-
      
1
  
Add back: (Gain)Loss on sales/calls of AFS debt securities
    
14,883
      
13,030
  
Pre-provision pre-tax earnings
    
14,883
      
13,030
  

Bank7 Corp.
Consolidated Balance Sheets

Assets
  
March 31, 2024
(unaudited)
    
December 31, 2023
  
             
Cash and due from banks
  
$
193,218
    
$
181,042
  
Interest-bearing time deposits in other banks
    
17,181
      
17,679
  
Available-for-sale debt securities
    
151,872
      
169,487
  
Loans, net of allowance for credit losses of $19,696 and $19,691 at March 31, 2024 and December 31, 2023, respectively
   
1,354,195
      
1,341,148
  
Loans held for sale, at fair value
    
-
      
718
  
Premises and equipment, net
    
15,376
      
14,942
  
Nonmarketable equity securities
    
1,278
      
1,283
  
Core deposit intangibles
    
970
      
1,031
  
Goodwill
    
8,458
      
8,458
  
Interest receivable and other assets
    
32,435
      
35,878
  
                 
Total assets
  
$
1,774,983
    
$
1,771,666
  
                 
Liabilities and Shareholders’ Equity
                
                 
Deposits
                
Noninterest-bearing
  
$
452,326
    
$
482,349
  
Interest-bearing
    
1,127,846
      
1,109,042
  
                 
Total deposits
    
1,580,172
      
1,591,391
  
                 
Income taxes payable
    
3,946
      
302
  
Interest payable and other liabilities
    
10,483
      
9,647
  
                 
Total liabilities
    
1,594,601
      
1,601,340
  
                 
Shareholders’ equity
                

               
Common stock, $0.01 par value; 50,000,000 shares authorized; share issued and outstanding: 9,238,206 and 9,197,696 at March 31, 2024 and December 31, 2023, respectively
   
92
      
92
  
                 
Additional paid-in capital
    
97,669
      
97,417
  
Retained earnings
    
88,310
      
78,962
  
Accumulated other comprehensive loss
    
(5,689
)
    
(6,145
)
                 
Total shareholders’ equity
    
180,382
      
170,326
  
 
                
Total liabilities and shareholders’ equity
  
$
1,774,983
    
$
1,771,666
  

   
Three Months Ended
  
   
March 31,
  
   
2024
(unaudited)
    
2023
  
Interest Income
            
Loans, including fees
  
$
30,117
    
$
25,352
  
Interest-bearing time deposits in other banks
    
253
      
49
  
Debt securities, taxable
    
1,012
      
706
  
Debt securities, tax-exempt
    
73
      
87
  
Other interest and dividend income
    
1,832
      
1,186
  
                 
Total interest income
    
33,287
      
27,380
  
                 
Interest Expense
                
Deposits
    
11,277
      
7,374
  
                 
Total interest expense
    
11,277
      
7,374
  
                 
Net Interest Income
    
22,010
      
20,006
  
                 
Provision for Credit Losses
    
-
      
475
  
                 
Net Interest Income After Provision for Credit Losses
    
22,010
      
19,531
  
                 
Noninterest Income
                
Mortgage lending income
    
51
      
54
  
Loss on sales, prepayments, and calls of available-for-sale debt securities
    
-
      
(1
)
Service charges on deposit accounts
    
249
      
235
  
Other
    
1,708
      
384
  
                 
Total noninterest income
    
2,008
      
672
  
                 
Noninterest Expense
                
Salaries and employee benefits
    
5,289
      
4,680
  
Furniture and equipment
    
230
      
249
  
Occupancy
    
661
      
719
  
Data and item processing
    
458
      
386
  
Accounting, marketing and legal fees
    
99
      
298
  
Regulatory assessments
    
386
      
394
  
Advertsing and public relations
    
145
      
148
  
Travel, lodging and entertainment
    
51
      
61
  
Other
    
1,816
      
714
  
                 
Total noninterest expense
    
9,135
      
7,649
  
                 
Income Before Taxes
    
14,883
      
12,554
  
Income tax expense
    
3,595
      
2,947
  
Net Income
  
$
11,288
    
$
9,607
  
                 
Earnings per common share - basic
  
$
1.22
    
$
1.05
  
Earnings per common share - diluted
    
1.21
      
1.04
  
Weighted average common shares outstanding - basic
    
9,220,154
      
9,146,932
  
Weighted average common shares outstanding - diluted
    
9,317,813
      
9,264,247
  
                 
Other Comprehensive Income
                
Unrealized gains on securities, net of tax expense of $0 and $554 for the three months ended March 31, 2024 and 2023, respectively
 
$
456
    
$
1,755
  
Reclassification adjustment for realized losses included in net income net of tax of $0 and $0 for the three months ended March 31, 2024 and 2023, respectively
   
-
      
1
  
Other comprehensive income
  
$
456
    
$
1,756
  
Comprehensive Income
  
$
11,744
    
$
11,363
  

   
Net Interest Margin
  
   
For the Three Months Ended March 31,
  
   
2024
(unaudited)
    
2023
  
   
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
  
$
176,072
    
$
2,085
      
4.75
%
  
$
134,650
    
$
1,235
      
3.72
%
Debt securities, taxable-equivalent
    
153,468
      
1,012
      
2.64
      
153,533
      
706
      
1.86
  
Debt securities, tax exempt
    
18,269
      
73
      
1.60
      
20,318
      
87
      
1.74
  
Loans held for sale
    
238
      
-
      
-
      
43
      
-
      
-
  
Total loans(1)
    
1,369,692
      
30,117
      
8.82
      
1,271,081
      
25,352
      
8.09
  
Total interest-earning assets
    
1,717,739
      
33,287
      
7.77
      
1,579,625
      
27,380
      
7.03
  
Noninterest-earning assets
    
39,769
                      
23,542
                  
Total assets
  
$
1,757,508
                    
$
1,603,167
                  
                                                 
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
845,129
      
8,196
      
3.89
%
  
$
803,618
      
5,753
      
2.90
%
Time deposits
    
264,973
      
3,081
      
4.66
      
213,760
      
1,621
      
3.08
  
Total interest-bearing deposits
    
1,110,102
      
11,277
      
4.07
      
1,017,378
      
7,374
      
2.94
  
Total interest-bearing liabilities
  
$
1,110,102
      
11,277
      
4.07
    
$
1,017,378
      
7,374
      
2.94
  
                                                 
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
  
$
460,028
                    
$
425,640
                  
Other noninterest-bearing liabilities
    
10,970
                      
11,131
                  
Total noninterest-bearing liabilities
    
470,998
                      
436,771
                  
Shareholders' equity
    
176,408
                      
149,018
                  
Total liabilities and shareholders' equity
  
$
1,757,508
                    
$
1,603,167
                  
                                                 
Net interest income
          
$
22,010
                    
$
20,006
          
Net interest spread
                    
3.70
%
                    
4.10
%
Net interest margin
                    
5.14
%
                    
5.14
%

(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 Friday, April 12, 2024 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/w8qEpOZ7G6v. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/w8qEpOZ7G6v 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 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