EX-99.1 2 ex99_1.htm EXHIBIT 99.1
Exhibit 99.1


FOR IMMEDIATE RELEASE: Bank7 Corp. Announces 1Q 2020 Earnings

Oklahoma City, OK, April 30, 2020 – 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, 2020.  “Our first quarter financial results were very good, but before moving into the data, we start by acknowledging the current pandemic-induced environment and its terrible effect on all aspects of our lives.  We are especially mindful and grateful to our Bank7 teammates, and will continue to work together to support each other, our customers, and our communities. Working together, we will overcome this.  Regarding our financial results, you can see that we benefited from robust loan growth, and our ability to maintain a strong NIM, especially considering the collapse in interest rates,” said Thomas L. Travis, President and CEO of the Company.

Three months ended March 31, 2020 compared to three months ended March 31, 2019:


 -
Pre-tax, pre-provision income of $7.4 million, an increase of 8.62%

-
Interest income on loans, including loan fee income, totaled $13.1 million, a 12.78% increase

-
Total assets of $974.4 million, an increase of 23.77%

-
Total loans of $785.7 million, an increase of 33.94%

-
Total deposits of $871.0 million, an increase of 26.84%

Additional Highlights

For the three months ended March 31, 2020 compared to three months ended March 31, 2019:


 -
Cost of funds was 1.09%, a decrease of 21.17%

-
Average loans of $747.8 million, an increase of 27.52%

-
Core deposits of $757.7 million, an increase of 23.83%

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.  At March 31, 2020 the Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 10.97%, 12.45%, and 13.56% respectively for the Bank.  At March 31, 2020 the Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 10.86%, 12.30%, and 13.41% respectively for the Company on a consolidated basis.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.
 
Pre-tax, pre-provision net income 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% and 25.0% in the first quarter of 2020 and 2019, 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
March 31,
  
(Dollars in thousands, except per share data)
  
2020
    
2019
  
Loan interest income (excluding loan fees)
            
Total loan interest income, including loan fee income
  
$
13,106
    
$
11,622
  
Loan fee income
    
(1,260
)
    
(1,289
)
Loan interest income excluding loan fee income
  
$
11,846
    
$
10,333
  
                 
Average total loans
  
$
747,774
    
$
586,408
  
Yield on loans (including loan fee income)
    
7.05
%
    
8.04
%
Yield on loans (excluding loan fee income)
    
6.37
%
    
7.15
%
                 
Net interest margin (excluding loan fees)
                
Net interest income
  
$
11,432
    
$
10,353
  
Loan fee income
    
(1,260
)
    
(1,289
)
Net interest income excluding loan fees
  
$
10,172
    
$
9,064
  
                 
Average earning assets
  
$
866,047
    
$
745,739
  
Net interest margin (including loan fee income)
    
5.31
%
    
5.63
%
Net interest margin (excluding loan fee income)
    
4.72
%
    
4.93
%
                 
Pre-tax, pre-provision net earnings
                
Net income before income taxes
  
$
6,759
    
$
6,821
  
Plus: Provision (reversal of) for loan losses
    
(650
)
    
-
  
Pre-tax, pre-provision net earnings
  
$
7,409
    
$
6,821
  
                 
Adjusted provision for income tax
                
Net income before income taxes
  
$
6,759
    
$
6,821
  
Total effective adjusted tax rate
    
25.3
%
    
25.0
%
Adjusted provision for income taxes
  
$
1,708
    
$
1,705
  
                 
Tax-adjusted net income
                
Net income before income taxes
  
$
6,759
    
$
6,821
  
Adjusted provision for income taxes
    
1,708
      
1,705
  
Tax-adjusted net income
  
$
5,051
    
$
5,116
  
                 
Tax-adjusted ratios and per share data
                
Tax-adjusted net income (numerator)
  
$
5,051
    
$
5,116
  
                 
Average assets (denominator)
  
$
874,803
    
$
754,176
  
Tax-adjusted return on average assets
    
2.32
%
    
2.75
%
                 
Average shareholders' equity (denominator)
  
$
101,718
    
$
90,813
  
Tax-adjusted return on average shareholders' equity
    
19.97
%
    
22.85
%
                 
Average tangible common equity (denominator)
  
$
99,957
    
$
88,839
  
Tax-adjusted return on average tangible common equity
    
20.32
%
    
23.35
%
                 
Weighted average common shares outstanding basic (denominator)
    
9,973,359
      
10,187,500
  
Tax-adjusted net income per common share--basic
  
$
0.51
    
$
0.50
  
                 
Weighted average common shares outstanding diluted (denominator)
    
9,973,819
      
10,187,500
  
Tax-adjusted net income per common share--diluted
  
$
0.51
    
$
0.50
  
                 
Tangible assets
                
Total assets
  
$
974,350
    
$
787,236
  
Less: Goodwill and intangibles
    
(1,737
)
    
(1,943
)
Tangible assets
  
$
972,613
    
$
785,293
  
                 
Tangible shareholders' equity
                
Total shareholders' equity
  
$
97,616
    
$
93,753
  
Less: Goodwill and intangibles
    
(1,737
)
    
(1,943
)
Tangible shareholders' equity
  
$
95,879
    
$
91,810
  
                 
Tangible shareholders' equity
                
Tangible shareholders' equity (numerator)
  
$
95,879
    
$
91,810
  
Tangible assets (denominator)
  
$
972,613
    
$
785,293
  
Tangible common equity to tangible assets
    
9.86
%
    
11.69
%
                 
End of period common shares outstanding
    
9,264,412
      
10,187,500
  
Book value per share
  
$
10.54
    
$
9.20
  
Tangible book value per share
  
$
10.35
    
$
9.01
  
Total shareholders' equity to total assets
    
10.02
%
    
11.91
%
 
         
Net Interest Margin Excluding Loan Fee Income
  
         
For the Three Months Ended March 31,
  
   
2020
    
2019
  
   
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)
  
$
117,046
    
$
398
      
1.37
%
  
$
158,068
    
$
956
      
2.45
%
Investment securities(2)
    
1,100
      
3
      
1.10
      
1,055
      
—
      
0.00
  
Loans held for sale
    
127
      
—
      
0.00
      
208
      
—
      
0.00
  
Total loans(3)
    
747,774
      
11,846
      
6.37
      
586,408
      
10,333
      
7.15
  
Total interest-earning assets
    
866,047
      
12,247
      
5.69
      
745,739
      
11,289
      
6.14
  
Noninterest-earning assets
    
8,756
                      
8,437
                  
Total assets
  
$
874,803
                    
$
754,176
                  
                                                 
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
342,406
      
1,010
      
1.19
%
  
$
285,289
      
1,299
      
1.85
%
Time deposits
    
205,085
      
1,065
      
2.09
      
192,499
      
925
      
1.95
  
Total interest-bearing deposits
    
547,491
      
2,075
      
1.52
      
477,788
      
2,224
      
1.89
  
Other borrowings
    
—
      
—
      
0.00
      
—
      
—
      
0.00
  
Total interest-bearing liabilities
    
547,491
      
2,075
      
1.52
      
477,788
      
2,224
      
1.89
  
                                                 
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
    
221,000
                      
179,801
                  
Other noninterest-bearing liabilities
    
4,594
                      
5,774
                  
Total noninterest-bearing liabilities
    
225,594
                      
185,575
                  
Shareholders’ equity
    
101,718
                      
90,813
                  
Total liabilities and shareholders’ equity
  
$
874,803
                    
$
754,176
                  
                                                 
Net interest income including loan fee income
          
$
10,172
                    
$
9,064
          
Net interest spread including loan fee income(4)
                    
4.16
%
                    
4.25
%
Net interest margin including loan fee income
                    
4.72
%
                    
4.93
%

   
Net Interest Margin With Loan Fee Income
  
   
For the Three Months Ended March 31,
  
   
2020
    
2019
  
   
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)
  
$
117,046
    
$
398
      
1.37
%
  
$
158,068
    
$
956
      
2.45
%
Investment securities(2)
    
1,100
      
3
      
1.10
      
1,055
      
—
      
0.00
  
Loans held for sale
    
127
      
—
      
0.00
      
208
      
—
      
0.00
  
Total loans(3)
    
747,774
      
13,106
      
7.05
      
586,408
      
11,622
      
8.04
  
Total interest-earning assets
    
866,047
      
13,507
      
6.27
      
745,739
      
12,578
      
6.84
  
Noninterest-earning assets
    
8,756
                      
8,437
                  
Total assets
  
$
874,803
                    
$
754,176
                  
                                                 
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
342,406
      
1,010
      
1.19
%
  
$
285,289
      
1,299
      
1.85
%
Time deposits
    
205,085
      
1,065
      
2.09
      
192,499
      
925
      
1.95
  
Total interest-bearing deposits
    
547,491
      
2,075
      
1.52
      
477,788
      
2,224
      
1.89
  
Other borrowings
    
—
      
—
      
0.00
      
—
      
—
      
0.00
  
Total interest-bearing liabilities
    
547,491
      
2,075
      
1.52
      
477,788
      
2,224
      
1.89
  
                                                 
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
    
221,000
                      
179,801
                  
Other noninterest-bearing liabilities
    
4,594
                      
5,774
                  
Total noninterest-bearing liabilities
    
225,594
                      
185,577
                  
Shareholders’ equity
    
101,718
                      
90,813
                  
Total liabilities and shareholders’ equity
  
$
874,803
                    
$
754,176
                  
                                                 
Net interest income excluding loan fee income
          
$
11,432
                    
$
10,353
          
Net interest spread excluding loan fee income(4)
                    
4.75
%
                    
4.95
%
Net interest margin excluding loan fee income
                    
5.31
%
                    
5.63
%

(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, exceper per share data
  
Unaudited as of
        
   
March 31,

December 31,
  
Assets
  
2020
    
2019
  
             
Cash and due from banks
  
$
148,626
    
$
117,128
  
Interest-bearing time deposits in other banks
    
30,102
      
30,147
  
Loans, net
    
777,220
      
699,458
  
Loans held for sale
    
-
      
1,031
  
Premises and equipment, net
    
9,644
      
9,624
  
Nonmarketable equity securities
    
1,089
      
1,100
  
Goodwill and intangibles
    
1,737
      
1,789
  
Interest receivable and other assets
    
5,932
      
6,115
  
 
                
Total assets
  
$
974,350
    
$
866,392
  
                 
Liabilities and Shareholders’ Equity
                
                 
Deposits
                
Noninterest-bearing
  
$
254,735
    
$
219,221
  
Interest-bearing
    
616,221
      
538,262
  
 
                
Total deposits
    
870,956
      
757,483
  
 
                
Income taxes payable
    
1,817
      
357
  
Interest payable and other liabilities
    
3,961
      
8,426
  
 
                
Total liabilities
    
876,734
      
766,266
  
 
                
Common stock
    
93
      
101
  
Additional paid-in capital
    
92,571
      
92,391
  
Retained earnings
    
4,952
      
7,634
  
 
                
Total shareholders’ equity
    
97,616
      
100,126
  
 
                
Total liabilities and shareholders’ equity
  
$
974,350
    
$
866,392
  

Bank7 Corp.
Consolidated Statements of Income


  
Unaudited as of
  

 
Quarter Ended
  
   
March 31,
  
Dollars in thousands, exceper per share data
  
2020
    
2019
  
Interest Income
            
Loans, including fees
  
$
13,106
    
$
11,622
  
Interest-bearing time deposits in other banks
    
162
      
417
  
Interest-bearing deposits in other banks
    
239
      
538
  
 
                
Total interest income
    
13,507
      
12,577
  
 
                
Interest Expense
                
Deposits
    
2,075
      
2,224
  
 
                
Total interest expense
    
2,075
      
2,224
  
 
                
Net Interest Income
    
11,432
      
10,353
  
 
                
Provision for Loan Losses
    
650
      
-
  
 
                
Net Interest Income After Provision for Loan Losses
    
10,782
      
10,353
  
 
                
Noninterest Income
                
Secondary market income
    
38
      
37
  
Service charges on deposit accounts
    
119
      
60
  
Other
    
173
      
126
  
 
                
Total noninterest income
    
330
      
223
  
 
                
Noninterest Expense
                
Salaries and employee benefits
    
2,474
      
2,171
  
Furniture and equipment
    
216
      
159
  
Occupancy
    
461
      
343
  
Data and item processing
    
276
      
262
  
Accounting, marketing and legal fees
    
126
      
147
  
Regulatory assessments
    
23
      
32
  
Advertising and public relations
    
269
      
186
  
Travel, lodging and entertainment
    
53
      
42
  
Other
    
455
      
413
  
 
                
Total noninterest expense
    
4,353
      
3,755
  
                 
Income Before Taxes
    
6,759
      
6,821
  
Income tax expense
    
1,708
      
1,705
  
Net Income
  
$
5,051
    
$
5,116
  
 
                
Earnings per common share - basic
  
$
0.51
    
$
0.50
  
Diluted earnings per common share
    
0.51
      
0.50
  
Weighted average common shares outstanding - basic
    
9,973,359
      
10,187,500
  
Weighted average common shares outstanding - diluted
    
9,973,819
      
10,187,500
  

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 30 at 3:00 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/2179/34185.   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/2179/34185 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