EX-99.1 2 ef20032266_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1


FOR IMMEDIATE RELEASE: Bank7 Corp. Announces Q2 2024 Earnings

Oklahoma City, July 11, 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 June 30, 2024.  “We are pleased to announce another record quarter of net income and EPS.  Our asset sensitive balance sheet, disciplined approach to cost controls, and excellent credit quality continues to produce outstanding results” said Thomas L. Travis, President and CEO of the Company.”

For the three months ended June 30, 2024 compared to the three months ended June 30, 2023:


 -
Net income of $11.5 million compared to $9.7 million, an increase of 18.24%

-
Earnings per share of $1.23 compared to $1.05, an increase of 17.14%

-
Total assets of $1.7 billion compared to $1.7 billion, an increase of 0.10%

-
Total loans of $1.4 billion compared to $1.3 billion, an increase of 5.94%

-
PPE of $15.3 million compared to $13.9 million, an increase of 9.57%

-
Total interest income of $32.4 million compared to $30.0 million, an increase of 7.74%

Three months ended June 30, 2024 compared to three months ended March 31, 2024


 -
Net income of $11.5 million compared to $11.3 million, an increase of 2.09%

-
Earnings per share of $1.23 compared to $1.21, an increase of 1.65%

-
Total assets of $1.7 billion compared to $1.8 billion, a decrease of 5.19%

-
Total loans of $1.4 billion compared to $1.4 billion, a decrease of 1.59%

-
PPE of $15.3 million compared to $14.9 million, an increase of 2.50%

-
Total interest income of $32.4 million compared to $33.3 million, a decrease of 2.76%

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, 2024, the Bank’s Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 11.12%, 13.04%, and 14.28%, respectively.  On June 30, 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 11.12%, 13.03%, and 14.27%, 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
  
   
June 30, 2024
    
March 31, 2024
    
June 30, 2023
  
Calculation of Pre-Provision Pre-Tax Earnings ("PPE")
  
(Dollars in thousands)
  
Net Income
  
$
11,524
    
$
11,288
    
$
9,746
  
Income Tax Expense
    
3,731
      
3,595
      
3,158
  
Pre-tax net income
    
15,255
      
14,883
      
12,904
  
Add back: Provision for credit losses
    
-
      
-
      
1,011
  
Add back: (Gain)Loss on sales/calls of AFS debt securities
    
-
      
-
      
7
  
Pre-provision pre-tax earnings
    
15,255
      
14,883
      
13,922
  

Bank7 Corp.
Consolidated Balance Sheets

Assets
  
June 30, 2024
(unaudited)
    
December 31, 2023
  
             
Cash and due from banks
  
$
210,105
    
$
181,042
  
Interest-bearing time deposits in other banks
    
12,202
      
17,679
  
Available-for-sale debt securities
    
66,284
      
169,487
  
Loans, net of allowance for credit losses of $17,772 and $19,691 at June 30, 2024 and December 31, 2023, respectively
    
1,334,317
      
1,341,148
  
Loans held for sale, at fair value
    
-
      
718
  
Premises and equipment, net
    
16,736
      
14,942
  
Nonmarketable equity securities
    
1,275
      
1,283
  
Core deposit intangibles
    
938
      
1,031
  
Goodwill
    
8,458
      
8,458
  
Income taxes receivable
    
358
      
-
  
Interest receivable and other assets
    
32,240
      
35,878
  
                 
Total assets
  
$
1,682,913
    
$
1,771,666
  
                 
Liabilities and Shareholders’ Equity
                
                 
Deposits
                
Noninterest-bearing
  
$
350,324
    
$
482,349
  
Interest-bearing
    
1,130,993
      
1,109,042
  
                 
Total deposits
    
1,481,317
      
1,591,391
  
                 
Income taxes payable
    
-
      
302
  
Interest payable and other liabilities
    
10,790
      
9,647
  
                 
Total liabilities
    
1,492,107
      
1,601,340
  
                 
Shareholders’ equity
                
Common stock, $0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,253,038 and 9,197,696 at June 30, 2024 and December 31, 2023, respectively
    
93
      
92
  
Additional paid-in capital
    
98,570
      
97,417
  
Retained earnings
    
97,891
      
78,962
  
Accumulated other comprehensive loss
    
(5,748
)
    
(6,145
)
                 
Total shareholders’ equity
    
190,806
      
170,326
  
                 
Total liabilities and shareholders’ equity
  
$
1,682,913
    
$
1,771,666
  

   
Three Months Ended
    
Six Months Ended
  
   
June 30,
    
June 30,
  
   
2024
(unaudited)
    
2023
    
2024
(unaudited)
    
2023
  
Interest Income
                        
Loans, including fees
  
$
28,926
    
$
26,885
    
$
59,043
    
$
52,237
  
Interest-bearing time deposits in other banks
    
246
      
62
      
499
      
111
  
Debt securities, taxable
    
951
      
701
      
1,963
      
1,407
  
Debt securities, tax-exempt
    
71
      
85
      
144
      
172
  
Other interest and dividend income
    
2,242
      
2,309
      
4,074
      
3,495
  
                                 
Total interest income
    
32,436
      
30,042
      
65,723
      
57,422
  
                                 
Interest Expense
                                
Deposits
    
11,204
      
9,544
      
22,481
      
16,918
  
                                 
Total interest expense
    
11,204
      
9,544
      
22,481
      
16,918
  
                                 
Net Interest Income
    
21,232
      
20,498
      
43,242
      
40,504
  
                                 
Provision for Credit Losses
    
-
      
1,011
      
-
      
1,485
  
                                 
Net Interest Income After Provision for Credit Losses
    
21,232
      
19,487
      
43,242
      
39,019
  
                                 
Noninterest Income
                                
Mortgage lending income
    
78
      
112
      
129
      
166
  
Loss on sales, prepayments, and calls of available-for-sale debt securities
    
-
      
(7
)
    
-
      
(8
)
Service charges on deposit accounts
    
260
      
199
      
509
      
434
  
Other
    
2,827
      
490
      
4,536
      
874
  
                                 
Total noninterest income
    
3,165
      
794
      
5,174
      
1,466
  
                                 
Noninterest Expense
                                
Salaries and employee benefits
    
5,118
      
4,709
      
10,407
      
9,389
  
Furniture and equipment
    
324
      
251
      
554
      
500
  
Occupancy
    
613
      
599
      
1,273
      
1,318
  
Data and item processing
    
481
      
469
      
939
      
856
  
Accounting, marketing and legal fees
    
264
      
179
      
364
      
478
  
Regulatory assessments
    
336
      
339
      
723
      
734
  
Advertsing and public relations
    
83
      
52
      
229
      
200
  
Travel, lodging and entertainment
    
131
      
110
      
183
      
171
  
Other
    
1,792
      
669
      
3,606
      
1,381
  
                                 
Total noninterest expense
    
9,142
      
7,377
      
18,278
      
15,027
  
                                 
Income Before Taxes
    
15,255
      
12,904
      
30,138
      
25,458
  
Income tax expense
    
3,731
      
3,158
      
7,326
      
6,105
  
Net Income
  
$
11,524
    
$
9,746
    
$
22,812
    
$
19,353
  
                                 
Earnings per common share - basic
  
$
1.25
    
$
1.06
    
$
2.47
    
$
2.12
  
Earnings per common share - diluted
    
1.23
      
1.05
      
2.44
      
2.09
  
Weighted average common shares outstanding - basic
    
9,250,332
      
9,153,077
      
9,235,176
      
9,150,022
  
Weighted average common shares outstanding - diluted
    
9,367,247
      
9,247,101
      
9,337,918
      
9,256,450
  
                                 
Other Comprehensive Income
                                
Unrealized gains (losses) on securities, net of tax expense of $123 and tax benefit $0 for the three months ended June 30, 2024 and 2023, respectively; net of tax expense of $123 and tax benefit of $554 for the six months ended June 30, 2024 and 2023, respectively
   $
(59

)		    
$

 (1,169
 )
  $ 397
    $
586
  
Reclassification adjustment for realized losses included in net income net of tax of $0 and $2 for the three months ended June 30, 2024 and 2023, respectively; $0 and $2 for the six months ended June 30, 2024 and 2023, respectively
    
-
      
5
      
-
      
6
  
Other comprehensive income (loss)
  
$
(59
)
  
$
(1,164
)
  
$
397
    
$
592
  
Comprehensive Income
  
$
11,465
    
$
8,582
    
$
23,209
    
$
19,945
  

   
Net Interest Margin
  
   
For the Six Months Ended June 30,
  
   
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
  
$
174,787
    
$
4,573
      
5.25
%
  
$
154,896
    
$
3,606
      
4.69
%
Debt securities, taxable-equivalent
    
129,963
      
1,963
      
3.03
      
153,478
      
1,407
      
1.85
  
Debt securities, tax exempt
    
17,761
      
144
      
1.63
      
20,030
      
172
      
1.73
  
Loans held for sale
    
297
      
-
      
-
      
56
      
-
      
-
  
Total loans(1)
    
1,362,339
      
59,043
      
8.69
      
1,277,245
      
52,237
      
8.25
  
Total interest-earning assets
    
1,685,147
      
65,723
      
7.82
      
1,605,705
      
57,422
      
7.21
  
Noninterest-earning assets
    
39,246
                      
24,299
                  
Total assets
  
$
1,724,393
                    
$
1,630,004
                  
                                                 
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
848,764
      
16,489
      
3.90
%
  
$
810,736
      
12,612
      
3.14
%
Time deposits
    
256,212
      
5,992
      
4.69
      
239,720
      
4,306
      
3.62
  
Total interest-bearing deposits
    
1,104,976
      
22,481
      
4.08
      
1,050,456
      
16,918
      
3.25
  
Total interest-bearing liabilities
    
1,104,976
      
22,481
      
4.08
      
1,050,456
      
16,918
      
3.25
  
                                                 
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
    
426,696
                      
414,383
                  
Other noninterest-bearing liabilities
    
12,218
                      
11,659
                  
Total noninterest-bearing liabilities
    
438,914
                      
426,042
                  
Shareholders' equity
    
180,503
                      
153,506
                  
Total liabilities and shareholders' equity
  
$
1,724,393
                    
$
1,630,004
                  
                                                 
Net interest income
          
$
43,242
                    
$
40,504
          
Net interest spread
                    
3.74
%
                    
3.96
%
Net interest margin
                    
5.15
%
                    
5.09
%

(1)
Nonaccrual loans are included in total loans

   
Net Interest Margin
  
   
For the Three Months Ended June 30,
  
   
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
  
$
173,502
    
$
2,488
      
5.75
%
  
$
174,920
    
$
2,371
      
5.44
%
Debt securities, taxable-equivalent
    
106,457
      
951
      
3.58
      
153,424
      
701
      
1.83
  
Debt securities, tax exempt
    
17,252
      
71
      
1.65
      
19,744
      
85
      
1.73
  
Loans held for sale
    
355
      
-
      
-
      
68
      
-
      
-
  
Total loans(1)
    
1,354,985
      
28,926
      
8.56
      
1,283,341
      
26,885
      
84.00
  
Total interest-earning assets
    
1,652,551
      
32,436
      
7.87
      
1,631,497
      
30,042
      
7.39
  
Noninterest-earning assets
    
38,722
                      
25,050
                  
Total assets
  
$
1,691,273
                    
$
1,656,547
                  
                                                 
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
851,751
      
8,293
      
3.91
%
  
$
817,819
      
6,860
      
3.36
%
Time deposits
    
247,452
      
2,911
      
4.72
      
265,396
      
2,684
      
4.06
  
Total interest-bearing deposits
    
1,099,203
      
11,204
      
4.09
      
1,083,215
      
9,544
      
3.53
  
Total interest-bearing liabilities
  
$
1,099,203
      
11,204
      
4.09
    
$
1,083,215
      
9,544
      
3.53
  
                                                 
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
  
$
394,010
                    
$
403,207
                  
Other noninterest-bearing liabilities
    
12,778
                      
12,180
                  
Total noninterest-bearing liabilities
    
406,788
                      
415,387
                  
Shareholders' equity
    
185,282
                      
157,945
                  
Total liabilities and shareholders' equity
  
$
1,691,273
                    
$
1,656,547
                  
                                                 
Net interest income
          
$
21,232
                    
$
20,498
          
Net interest spread
                    
3.78
%
                    
3.85
%
Net interest margin
                    
5.15
%
                    
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 second quarter results, which will be broadcast live over the Internet, on Friday, July 11, 2024 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/0P6wZ64ME8o. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/0P6wZ64ME8o 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