Bank7 Corp. Announces 1Q 2021 Earnings

OKLAHOMA CITY, April 29, 2021 /PRNewswire/ -- Bank7 Corp. BSVN ("the Company"), the parent company of Oklahoma City-based Bank7 (the "Bank"), today reported unaudited results for the fiscal quarter ended March 31, 2021.  "We continue to perform at a very high level, as evidenced by our 1Q annualized PPE record pace.  Our capital ratios remain strong, and we have confidence in our asset quality and liquidity components. Our region has weathered the pandemic-induced stress to the economy, and businesses across virtually all sectors are rapidly expanding and growing.  We remain confident about 2021 and beyond, and intend to capitalize on the many opportunities we have," said Thomas L. Travis, President and CEO of the Company. 

Three months ended March 31, 2021 compared to three months ended March 31, 2020:

  • Pre-tax, pre-provision earnings of $8.1 million, an increase of 9.4%
  • Efficiency ratio of 35.92%, compared to 37.00%
  • Total assets of $1.05 billion, an increase of 7.36%
  • Total loans of $861.4 million, an increase of 9.63%
  • Total deposits of $929.0 million, an increase of 6.67%
  • Cost of funds of 0.41%, a decrease of 62.39%
  • Tangible book value per share of $12.18, an increase of 17.66%

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, 2021, the Bank's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.23%, 14.10%, and 15.35%, respectively.  On March 31, 2021, on a consolidated basis, the Company's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.23%, 14.09%, and 15.34%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

Pre-tax, pre-provision earnings is defined as income before taxes and provision for loan losses.  We believe the most directly comparable GAAP financial measure is income before taxes.  Disclosure of this measure enables you to compare our operations to those of other banking companies before consideration of taxes and provision expense.  We calculate our tax-adjusted net income, return on average assets, and return on average equity, and per share amounts by using a combined effective tax rate for federal and state income taxes of 25.3% in the first quarter of both 2021 and 2020.  We acknowledge that our non-GAAP financial measures have a number of limitations.  As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other banking companies use.  Other banking companies may use names similar to those we use for non-GAAP financial measures we disclose, but may calculate them differently.  You should understand how we and other companies each calculate their non-GAAP financial measures when making comparisons.  The following reconciliation table provides a more detailed analysis of these non-GAAP financial measures:





Three months ended       

March 31,





(Dollars in thousands, except per share data)



2021



2020

Loan interest income (excluding loan fees)









Total loan interest income, including loan fee income



$           13,094



$          13,106

Loan fee income



(1,991)



(1,260)

Loan interest income excluding loan fee income



$           11,103



$          11,846











Average total loans



$         847,498



$        747,774

Yield on loans (including loan fee income)



6.27%



7.05%

Yield on loans (excluding loan fee income)



5.31%



6.37%











Pre-tax, pre-provision net earnings









Net income before income taxes



$             6,830



$            6,759

Plus: Provision (reversal of) for loan losses



(1,275)



(650)

Pre-tax, pre-provision net earnings



$             8,105



$            7,409











Adjusted provision for income tax









Net income before income taxes



$             6,830



$            6,759

Total effective adjusted tax rate



25.3%



25.3%

Adjusted provision for income taxes



$             1,726



$            1,708











Tax-adjusted net income









Net income before income taxes



$             6,830



$            6,759

Adjusted provision for income taxes



1,726



1,708

Tax-adjusted net income



$             5,104



$            5,051





















Tax-adjusted ratios and per share data









Tax-adjusted net income (numerator)



$             5,104



$            5,051











Average assets (denominator)



$         981,890



$        874,803

Tax-adjusted return on average assets



2.11%



2.32%











Average shareholders' equity (denominator)



$         108,859



$        101,718

Tax-adjusted return on average shareholders' equity



19.02%



19.97%











Average tangible common equity (denominator)



$         107,299



$          99,957

Tax-adjusted return on average tangible common equity



19.29%



20.32%











Weighted average common shares outstanding basic (denominator)



9,049,007



9,972,899

Tax-adjusted net income per common share--basic



$               0.56



$              0.51











Weighted average common shares outstanding diluted (denominator)



9,058,685



9,972,899

Tax-adjusted net income per common share--diluted



$               0.56



$              0.51

Tangible assets









Total assets



$      1,046,076



$        974,350

Less: Goodwill and intangibles



(1,536)



(1,737)

Tangible assets



$      1,044,540



$        972,613











Tangible shareholders' equity









Total shareholders' equity



$         111,730



$          97,616

Less: Goodwill and intangibles



(1,536)



(1,737)

Tangible shareholders' equity



$         110,194



$          95,879











Tangible shareholders' equity









Tangible shareholders' equity (numerator)



$         110,194



$          95,879

Tangible assets (denominator)



$      1,044,540



$        972,613

Tangible common equity to tangible assets



10.55%



9.86%











End of period common shares outstanding



9,049,256



9,264,412

Book value per share



$             12.35



$            10.54

Tangible book value per share



$             12.18



$            10.35

Total shareholders' equity to total assets



10.68%



10.02%

 





Net Interest Margin Excluding Loan Fee Income





For the Three Months Ended March 31,





2021



2020





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(1)



$  125,739



$           92



0.30%



$  117,046



$         398



1.37%

Investment securities(2)



1,172



2



0.69



1,100



3



1.10

Loans held for sale



378



-



-



127



-



-

Total loans(3)



847,498



11,103



5.31



747,774



11,846



6.37

Total interest-earning assets



974,787



11,197



4.66



866,047



12,247



5.69

Noninterest-earning assets



7,103











8,756









Total assets



$  981,890











$  874,803



































Funding sources:

























Interst-bearing liabilities:

























Deposits:

























Transaction accounts



$  419,991



362



0.35%



$  342,406



1,010



1.19%

Time deposits



205,557



513



1.01



205,085



1,065



2.09

Total interest-bearing deposits



625,548



875



0.57



547,491



2,075



1.52

Total interest-bearing liabilities



625,548



875



0.57



547,491



2,075



1.52



























Noninterest-bearing liabilities:

























Noninterest-bearing deposits



243,290











221,000









Other noninterest-bearing liabilities



4,193











4,594









Total noninterest-bearing liabilities



247,483











225,594









Shareholders' equity



108,859











101,718









Total liabilities and shareholders' equity



$  981,890











$  874,803



































Net interst income excluding loan fee income







$    10,322











$    10,172





Net interest spread excluding loan fee

income(4)











4.09%











4.16%

Net interest margin excluding loan fee income











4.29%











4.72%

 





Net Interest Margin With Loan Fee Income





For the Three Months Ended March 31,





2021



2020





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(1)



$  125,739



$           92



0.30%



$  117,046



$         398



1.37%

Investment securities(2)



1,172



2



0.69



1,100



3



1.10

Loans held for sale



378



-



-



127



-



-

Total loans(3)



847,498



13,094



6.27



747,774



13,106



7.05

Total interest-earning assets



974,787



13,188



5.49



866,047



13,507



6.27

Noninterest-earning assets



7,103











8,756









Total assets



$  981,890











$  874,803



































Funding sources:

























Interst-bearing liabilities:

























Deposits:

























Transaction accounts



$  419,991



362



0.35%



$  342,406



1,010



1.19%

Time deposits



205,557



513



1.01



205,085



1,065



2.09

Total interest-bearing deposits



625,548



875



0.57



547,491



2,075



1.52

Total interest-bearing liabilities



625,548



875



0.57



547,491



2,075



1.52



























Noninterest-bearing liabilities:

























Noninterest-bearing deposits



243,290











221,000









Other noninterest-bearing liabilities



4,193











4,594









Total noninterest-bearing liabilities



247,483











225,594









Shareholders' equity



108,859











101,718









Total liabilities and shareholders' equity



$  981,890











$  874,803



































Net interst income including loan fee income







$    12,313











$    11,432





Net interest spread including loan fee

income(4)











4.92%











4.75%

Net interest margin including loan fee income











5.12%











5.31%





(1)

Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.

(2)

Includes income and average balances for FHLB and FRB stock.

(3)

Non-accrual loans are included in loans.

(4)

Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.

 

Bank7 Corp.

Consolidated Balance Sheets

Dollars in thousands

Unaudited as of







Assets

March 31,



December 31,





2021



2020













Cash and due from banks

$                170,132



$             153,901



Interest-bearing time deposits in other banks

6,963



16,412



Loans, net

850,544



826,974



Loans held for sale

-



324



Premises and equipment, net

9,053



9,151



Nonmarketable equity securities

1,187



1,172



Goodwill and intangibles

1,536



1,583



Interest receivable and other assets

6,661



7,152













Total assets

$             1,046,076



$          1,016,669













Liabilities and Shareholders' Equity



















Deposits









Noninterest-bearing

$                269,087



$             246,569



Interest-bearing

659,942



658,945













Total deposits

929,029



905,514













Income taxes payable

2,050



9



Interest payable and other liabilities

3,267



3,827













Total liabilities

934,346



909,350













Common stock

90



90



Additional paid-in capital

93,464



93,162



Retained earnings

18,176



14,067













Total shareholders' equity

111,730



107,319













Total liabilities and shareholders' equity

$             1,046,076



$          1,016,669



 

Bank7 Corp.

Consolidated Statements of Income





Unaudited as of





Quarter Ended





March 31,

Dollars in thousands, except per share data



2021



2020

Interest Income









Loans, including fees



$                13,094



$                13,106

Interest-bearing time deposits in other banks



68



162

Interest-bearing deposits in other banks



26



239











Total interest income



13,188



13,507











Interest Expense









Deposits



875



2,075











Total interest expense



875



2,075











Net Interest Income



12,313



11,432











Provision for Loan Losses



1,275



650











Net Interest Income After Provision for Loan Losses



11,038



10,782











Noninterest Income









Secondary market income



14



38

Service charges on deposit accounts



120



119

Other



203



173











Total noninterest income



337



330











Noninterest Expense









Salaries and employee benefits



2,790



2,474

Furniture and equipment



202



216

Occupancy



472



461

Data and item processing



279



276

Accounting, marketing and legal fees



148



126

Regulatory assessments



141



23

Advertising and public relations



34



269

Travel, lodging and entertainment



89



53

Other



390



455











Total noninterest expense



4,545



4,353











Income Before Taxes



6,830



6,759

Income tax expense



1,726



1,708

Net Income



$                  5,104



$                  5,051











Earnings per common share - basic



$                    0.56



$                    0.51

Diluted earnings per common share



0.56



0.51

Weighted average common shares outstanding - basic



9,049,007



9,972,899

Weighted average common shares outstanding - diluted



9,058,685



9,972,899

About Bank7 Corp.

We are Bank7 Corp., a bank holding company headquartered in Oklahoma City, Oklahoma. Through our wholly-owned subsidiary, Bank7, we operate nine 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 Thursday, April 29, 2021 at 4:30 p.m. Eastern Time. To participate in the call, dial 1-888-348-6421, or access it live over the Internet at https://www.webcaster4.com/Webcast/Page/2179/40829.  For those not able to participate in the live call, an archive of the webcast will be available at https://www.webcaster4.com/Webcast/Page/2179/40829 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.

About Non-GAAP Financial Measures

This communication includes certain non-GAAP financial measures, including tax-adjusted net income, tax-adjusted earnings per share, tax-adjusted return on average assets and tax-adjusted return on average shareholders' equity. These non-GAAP financial measures and any other non-GAAP financial measures that we discuss in this presentation should not be considered in isolation, and should be considered as additions to, and not substitutes for or superior to, measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Bank7 Corp.'s non-GAAP financial measures as tools for comparison. See the table above in this communication for a reconciliation of the non-GAAP financial measures used in (or conveyed orally during) this communication to their most directly comparable GAAP financial measures.

Contact:

Thomas Travis

President & CEO

(405) 810-8600

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/bank7-corp-announces-1q-2021-earnings-301279903.html

SOURCE Bank7 Corp.

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