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Bank7 Corp. Announces 1Q 2021 Earnings

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OKLAHOMA CITY, April 29, 2021 /PRNewswire/ -- 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 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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