PR Newswire | Apr 29, 2021 09:01AM EDT

04/29 08:00 CDT

Bank7 Corp. Announces 1Q 2021 Earnings OKLAHOMA CITY, April 29, 2021

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 2021 2020share data)

Loan interest income (excluding loanfees)

Total loan interest income, $ 13,094 $ 13,106including loan fee income

Loan fee income (1,991) (1,260)

Loan interest income excluding loan $ 11,103 $ 11,846fee income

Average total loans $ 847,498 $ 747,774

Yield on loans (including loan fee 6.27% 7.05%income)

Yield on loans (excluding loan fee 5.31% 6.37%income)

Pre-tax, pre-provision net earnings

Net income before income taxes $ 6,830 $ 6,759

Plus: Provision (reversal of) for (1,275) (650)loan losses

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 sharedata

Tax-adjusted net income (numerator) $ 5,104 $ 5,051

Average assets (denominator) $ 981,890 $ 874,803

Tax-adjusted return on average 2.11% 2.32%assets

Average shareholders' equity $ 108,859 $ 101,718(denominator)

Tax-adjusted return on average 19.02% 19.97%shareholders' equity

Average tangible common equity $ 107,299 $ 99,957(denominator)

Tax-adjusted return on average 19.29% 20.32%tangible common equity

Weighted average common shares 9,049,007 9,972,899outstanding basic (denominator)

Tax-adjusted net income per common $ 0.56 $ 0.51share--basic

Weighted average common shares 9,058,685 9,972,899outstanding diluted (denominator)

Tax-adjusted net income per common $ 0.56 $ 0.51share--diluted

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 $ 110,194 $ 95,879(numerator)

Tangible assets (denominator) $ 1,044,540 $ 972,613

Tangible common equity to tangible 10.55% 9.86%assets

End of period common shares 9,049,256 9,264,412outstanding

Book value per share $ 12.35 $ 10.54

Tangible book value per share $ 12.18 $ 10.35

Total shareholders' equity to total 10.68% 10.02%assets

Net Interest Margin Excluding Loan Fee Income

For the Three Months Ended March 31,

2021 2020

Average Interest Average Average Interest Average Balance Income/ Yield/ Balance Income/ Yield/ Expense Rate Expense Rate

(Dollars in thousands)

Interest-EarningAssets:

Short-term $ 125,739 $ 92 0.30% $ 117,046 $ 398 1.37%investments^(1)

Investment 1,172 2 0.69 1,100 3 1.10securities^(2)

Loans held for sale 378 - - 127 - -

Total loans^(3) 847,498 11,103 5.31 747,774 11,846 6.37

Totalinterest-earning 974,787 11,197 4.66 866,047 12,247 5.69assets

Noninterest-earning 7,103 8,756assets

Total assets $ 981,890 $ 874,803

Funding sources:

Interst-bearingliabilities:

Deposits:

Transaction $ 419,991 362 0.35% $ 342,406 1,010 1.19%accounts

Time deposits 205,557 513 1.01 205,085 1,065 2.09

Totalinterest-bearing 625,548 875 0.57 547,491 2,075 1.52deposits

Totalinterest-bearing 625,548 875 0.57 547,491 2,075 1.52liabilities

Noninterest-bearingliabilities:

Noninterest-bearing 243,290 221,000deposits

Othernoninterest-bearing 4,193 4,594liabilities

Totalnoninterest-bearing 247,483 225,594liabilities

Shareholders' 108,859 101,718equity

Total liabilitiesand shareholders' $ 981,890 $ 874,803equity

Net interst incomeexcluding loan fee $ 10,322 $ 10,172income

Net interest spreadexcluding loan fee 4.09% 4.16%income^(4)

Net interest marginexcluding loan fee 4.29% 4.72%income

Net Interest Margin With Loan Fee Income

For the Three Months Ended March 31,

2021 2020

Average Interest Average Average Interest Average Balance Income/ Yield/ Balance Income/ Yield/ Expense Rate Expense Rate

(Dollars in thousands)

Interest-EarningAssets:

Short-term $ 125,739 $ 92 0.30% $ 117,046 $ 398 1.37%investments^(1)

Investment 1,172 2 0.69 1,100 3 1.10securities^(2)

Loans held for sale 378 - - 127 - -

Total loans^(3) 847,498 13,094 6.27 747,774 13,106 7.05

Totalinterest-earning 974,787 13,188 5.49 866,047 13,507 6.27assets

Noninterest-earning 7,103 8,756assets

Total assets $ 981,890 $ 874,803

Funding sources:

Interst-bearingliabilities:

Deposits:

Transaction $ 419,991 362 0.35% $ 342,406 1,010 1.19%accounts

Time deposits 205,557 513 1.01 205,085 1,065 2.09

Totalinterest-bearing 625,548 875 0.57 547,491 2,075 1.52deposits

Totalinterest-bearing 625,548 875 0.57 547,491 2,075 1.52liabilities

Noninterest-bearingliabilities:

Noninterest-bearing 243,290 221,000deposits

Othernoninterest-bearing 4,193 4,594liabilities

Totalnoninterest-bearing 247,483 225,594liabilities

Shareholders' 108,859 101,718equity

Total liabilitiesand shareholders' $ 981,890 $ 874,803equity

Net interst incomeincluding loan fee $ 12,313 $ 11,432income

Net interest spreadincluding loan fee 4.92% 4.75%income^(4)

Net interest marginincluding loan fee 5.12% 5.31%income

(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 6,963 16,412in other banks

Loans, net 850,544 826,974

Loans held for sale - 324

Premises and equipment, net 9,053 9,151

Nonmarketable equity 1,187 1,172securities

Goodwill and intangibles 1,536 1,583

Interest receivable and other 6,661 7,152assets

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 3,267 3,827liabilities

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 $ 1,046,076 $ 1,016,669shareholders' equity

Bank7 Corp.

Consolidated Statements of Income

Unaudited as of

Quarter Ended

March 31,

Dollars in thousands, 2021 2020except per share data

Interest Income

Loans, including fees $ 13,094 $ 13,106

Interest-bearing time 68 162deposits in other banks

Interest-bearing deposits 26 239in other banks

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 11,038 10,782Provision for Loan Losses

Noninterest Income

Secondary market income 14 38

Service charges on 120 119deposit accounts

Other 203 173

Total noninterest income 337 330

Noninterest Expense

Salaries and employee 2,790 2,474benefits

Furniture and equipment 202 216

Occupancy 472 461

Data and item processing 279 276

Accounting, marketing and 148 126legal fees

Regulatory assessments 141 23

Advertising and public 34 269relations

Travel, lodging and 89 53entertainment

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 $ 0.56 $ 0.51- basic

Diluted earnings per 0.56 0.51common share

Weighted average commonshares outstanding - 9,049,007 9,972,899basic

Weighted average commonshares outstanding - 9,058,685 9,972,899diluted

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 TravisPresident & CEO(405) 810-8600

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SOURCE Bank7 Corp.