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Bank7 Corp. Announces Q3 2021 Earnings

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OKLAHOMA CITY, Oct. 21, 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 September 30, 2021. "Our company continues to perform at a very high level, we are pleased to report another record quarter of net income for BSVN. While we are proud of our earnings, capital, and liquidity strength, we also pause to acknowledge the 3-year anniversary of our IPO, and how we had confidence in our team to perform at a high level and we've exceeded those expectations." said Thomas L. Travis, President and CEO of the Company.

Bank7 Logo
Bank7 Logo

Three months ended September 30, 2021 compared to three months ended September 30, 2020:

  • Pre-tax, pre-provision earnings of $9.1 million compared to $7.4 million, an increase of 23.5%

  • Net income of $6.3 million compared to $4.4 million, an increase of 41.1%

  • Total assets of $1.1 billion compared to $973.4 million, an increase of 17.8%

  • Total deposits of $1.0 billion compared to $863.7 million, an increase of 17.9%

  • Tangible book value per share of $13.34 compared to $11.21, an increase of 19.0%

  • Average cost of funds of 0.33% compared to 0.57%, a decrease of 42.1%

  • Earnings per share of $0.69 compared to $0.48, an increase of 43.8%

  • ROAA of 2.36% compared to 1.83%, an increase of 28.9%

  • ROATCE of 21.12% compared to 17.44%, an increase of 21.1%

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 September 30, 2021, the Bank's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.51%, 13.76%, and 14.82%, respectively. On September 30, 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 11.50%, 13.74%, and 14.80%, 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 24.8% and 27.2% in the third quarter of 2021 and 2020, respectively. 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
September 30,


Nine months ended
September 30,



(Dollars in thousands, except per share data)


2021


2020


2021


2020

Loan interest income (excluding loan fees)









Total loan interest income, including loan fee income


$ 13,927


$ 12,777


$ 41,377


$ 39,268

Loan fee income


(1,636)


(1,078)


(6,154)


(3,969)

Loan interest income excluding loan fee income


$ 12,291


$ 11,699


$ 35,223


$ 35,299










Average total loans


$ 924,391


$ 847,076


$ 887,353


$ 807,134

Yield on loans (including loan fee income)


5.98


6.00


6.23


6.50

Yield on loans (excluding loan fee income)


5.28


5.49


5.31


5.84










Pre-tax, pre-provision net earnings









Net income before income taxes


$ 8,327


$ 6,101


$ 23,226


$ 19,567

Plus: Provision for loan losses


750


1,250


3,325


3,300

Pre-tax, pre-provision net earnings


$ 9,077


$ 7,351


$ 26,551


$ 22,867










Adjusted provision for income tax









Net income before income taxes


$ 8,327


$ 6,101


$ 23,226


$ 19,567

Total effective adjusted tax rate


24.8%


27.2%


24.8%


25.8%

Adjusted provision for income taxes


$ 2,063


$ 1,661


$ 5,753


$ 5,040










Tax-adjusted net income









Net income before income taxes


$ 8,327


$ 6,101


$ 23,226


$ 19,567

Adjusted provision for income taxes


2,063


1,661


5,753


5,040

Tax-adjusted net income


$ 6,264


$ 4,440


$ 17,473


$ 14,527



















Tax-adjusted ratios and per share data









Tax-adjusted net income (numerator)


$ 6,264


$ 4,440


$ 17,473


$ 14,527










Average assets (denominator)


$ 1,051,873


$ 967,044


$ 1,019,764


$ 937,849

Tax-adjusted return on average assets


2.36%


1.83%


2.29%


2.07%










Average shareholders' equity (denominator)


$ 119,145


$ 102,929


$ 113,817


$ 101,377

Tax-adjusted return on average shareholders' equity


20.86%


17.16%


20.53%


19.14%










Average tangible common equity (denominator)


$ 117,679


$ 101,269


$ 112,305


$ 99,667

Tax-adjusted return on average tangible common equity


21.12%


17.44%


20.80%


19.47%










Weighted average common shares outstanding basic (denominator)


9,052,718


9,228,128


9,051,112


9,483,540

Tax-adjusted net income per common share--basic


$ 0.69


$ 0.48


$ 1.93


$ 1.53










Weighted average common shares outstanding diluted (denominator)


9,105,255


9,228,128


9,078,671


9,483,540

Tax-adjusted net income per common share--diluted


$ 0.69


$ 0.48


$ 1.92


$ 1.53

Tangible assets









Total assets


$ 1,146,230


$ 973,354





Less: Goodwill and intangibles


(1,446)


(1,634)





Tangible assets


$ 1,144,784


$ 971,720














Tangible shareholders' equity









Total shareholders' equity


$ 122,409


$ 105,230





Less: Goodwill and intangibles


(1,446)


(1,634)





Tangible shareholders' equity


$ 120,963


$ 103,596














Tangible shareholders' equity









Tangible shareholders' equity (numerator)


$ 120,963


$ 103,596





Tangible assets (denominator)


1,144,784


971,720





Tangible common equity to tangible assets


10.57%


10.66%














End of period common shares outstanding


9,070,038


9,241,689





Book value per share


$ 13.50


$ 11.39





Tangible book value per share


$ 13.34


$ 11.21





Total shareholders' equity to total assets


10.68%


10.81%







Net Interest Margin Excluding Loan Fee Income



For the Three Months Ended September 30,



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)


$ 120,078


$ 79


0.26%


$ 111,019


$ 147


0.53%

Investment securities(2)


1,187


2


0.67


1,138


2


0.70

Loans held for sale


610


-


-


425


-


-

Total loans(3)


924,391


12,291


5.28


847,076


11,699


5.49

Total interest-earning assets


1,046,266


12,372


4.69


959,658


11,848


4.91

Noninterest-earning assets


5,607






7,386





Total assets


$ 1,051,873






$ 967,044


















Funding sources:













Interest-bearing liabilities:













Deposits:













Transaction accounts


$ 401,843


332


0.33%


$ 381,572


545


0.57%

Time deposits


220,189


397


0.72


200,961


780


1.54

Total interest-bearing deposits


622,032


729


0.46


582,533


1,325


0.90

Total interest-bearing liabilities


622,032


729


0.46


582,533


1,325


0.90














Noninterest-bearing liabilities:













Noninterest-bearing deposits


304,063






276,219





Other noninterest-bearing liabilities


6,633






5,363





Total noninterest-bearing liabilities


310,696






281,582





Shareholders' equity


119,145






102,929





Total liabilities and shareholders' equity


$ 1,051,873






$ 967,044


















Net interest income excluding loan fee income




$ 11,643






$ 10,523



Net interest spread excluding loan fee
income(4)






4.23%






4.01%

Net interest margin excluding loan fee income






4.41%






4.36%
















Net Interest Margin Including Loan Fee Income



For the Three Months Ended September 30,



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)


$ 120,078


$ 79


0.26%


$ 111,019


$ 147


0.53%

Investment securities(2)


1,187


2


0.67


1,138


2


0.70

Loans held for sale


610


-


-


425


-


-

Total loans(3)


924,391


13,927


5.98


847,076


12,777


6.00

Total interest-earning assets


1,046,266


14,008


5.31


959,658


12,926


5.36

Noninterest-earning assets


5,607






7,386





Total assets


$ 1,051,873






$ 967,044


















Funding sources:













Interest-bearing liabilities:













Deposits:













Transaction accounts


$ 401,843


332


0.33%


$ 381,572


545


0.57%

Time deposits


220,189


397


0.72


200,961


780


1.54

Total interest-bearing deposits


622,032


729


0.46


582,533


1,325


0.90

Total interest-bearing liabilities


622,032


729


0.46


582,533


1,325


0.90














Noninterest-bearing liabilities:













Noninterest-bearing deposits


$ 304,063






276,219





Other noninterest-bearing liabilities


6,633






5,363





Total noninterest-bearing liabilities


310,696






281,582





Shareholders' equity


119,145






102,929





Total liabilities and shareholders' equity


$ 1,051,873






$ 967,044


















Net interest income including loan fee income




$ 13,279






$ 11,601



Net interest spread including loan fee
income(4)






4.85%






4.45%

Net interest margin including loan fee income






5.04%






4.81%



(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.



Net Interest Margin Excluding Loan Fee Income



For the Nine Months Ended September 30,



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)


$ 124,801


$ 236


0.25%


$ 120,909


$ 701


0.77%

Investment securities(2)


1,182


19


2.15


1,109


21


2.53

Loans held for sale


501


-


-


258


-


-

Total loans(3)


887,353


35,223


5.31


807,134


35,299


5.84

Total interest-earning assets


1,013,837


35,478


4.68


929,410


36,021


5.18

Noninterest-earning assets


5,927






8,439





Total assets


$ 1,019,764






$ 937,849


















Funding sources:













Interest-bearing liabilities:













Deposits:













Transaction accounts


$ 410,299


1,024


0.33%


$ 366,162


2,259


0.82%

Time deposits


212,706


1,352


0.85


208,650


2,769


1.77

Total interest-bearing deposits


623,005


2,376


0.51


574,812


5,028


1.17

Total interest-bearing liabilities


623,005


2,376


0.51


574,812


5,028


1.17














Noninterest-bearing liabilities:





...