Bank7 Corp. Announces Q4 2023 and Full Year Earnings
OKLAHOMA CITY, Jan. 29, 2024 /PRNewswire/ -- 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 | 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 | 92 | 91 | ||
December 31, 2023 and December 31, 2022 respectively | ||||
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 | Twelve Months Ended | |||||||
December 31, | December 31, | |||||||
2023 | 2022 | 2023 | 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 | 2022 | |||||||||||
Average | Interest | Average | Average | Interest | Average | |||||||
(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 | 2022 | |||||||||||
Average | Interest | Average | Average | Interest | Average | |||||||
(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
SOURCE Bank7 Corp.
Share this article