PR Newswire | Oct 21, 2021 09:02AM EDT

10/21 08:00 CDT

Bank7 Corp. Announces Q3 2021 Earnings OKLAHOMA CITY, Oct. 21, 2021

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.

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 Nine months ended September 30, September 30, (Dollars in thousands, 2021 2020 2021 2020 except per share data) Loan interest income (excluding loan fees) Total loan interest income, $ 13,927 $ 12,777 $ 41,377 $ 39,268 including loan fee income Loan fee (1,636) (1,078) (6,154) (3,969) income Loan interest income $ 12,291 $ 11,699 $ 35,223 $ 35,299 excluding loan fee income Average total $ 924,391 $ 847,076 $ 887,353 $ 807,134 loans Yield on loans (including 5.98 6.00 6.23 6.50 loan fee income) Yield on loans (excluding 5.28 5.49 5.31 5.84 loan fee income) Pre-tax, pre-provision net earnings Net income before income $ 8,327 $ 6,101 $ 23,226 $ 19,567 taxes Plus: Provision for 750 1,250 3,325 3,300 loan losses Pre-tax, pre-provision $ 9,077 $ 7,351 $ 26,551 $ 22,867 net earnings Adjusted provision for income tax Net income before income $ 8,327 $ 6,101 $ 23,226 $ 19,567 taxes Total effective 24.8% 27.2% 24.8% 25.8% adjusted tax rate Adjusted provision for $ 2,063 $ 1,661 $ 5,753 $ 5,040 income taxes Tax-adjusted net income Net income before income $ 8,327 $ 6,101 $ 23,226 $ 19,567 taxes Adjusted provision for 2,063 1,661 5,753 5,040 income taxes Tax-adjusted $ 6,264 $ 4,440 $ 17,473 $ 14,527 net income Tax-adjusted ratios and per share data Tax-adjusted net income $ 6,264 $ 4,440 $ 17,473 $ 14,527 (numerator) Average assets $ 1,051,873 $ 967,044 $ 1,019,764 $ 937,849 (denominator) Tax-adjusted return on 2.36% 1.83% 2.29% 2.07% average assets Average shareholders' $ 119,145 $ 102,929 $ 113,817 $ 101,377 equity (denominator) Tax-adjusted return on average 20.86% 17.16% 20.53% 19.14% shareholders' equity Average tangible $ 117,679 $ 101,269 $ 112,305 $ 99,667 common equity (denominator) Tax-adjusted return on average 21.12% 17.44% 20.80% 19.47% tangible common equity Weighted average common shares 9,052,718 9,228,128 9,051,112 9,483,540 outstanding basic (denominator) Tax-adjusted net income per $ 0.69 $ 0.48 $ 1.93 $ 1.53 common share--basic Weighted average common shares 9,105,255 9,228,128 9,078,671 9,483,540 outstanding diluted (denominator) Tax-adjusted net income per $ 0.69 $ 0.48 $ 1.92 $ 1.53 common share--diluted Tangible assets Total assets $ 1,146,230 $ 973,354 Less: Goodwill and (1,446) (1,634) intangibles Tangible $ 1,144,784 $ 971,720 assets Tangible shareholders' equity Total shareholders' $ 122,409 $ 105,230 equity Less: Goodwill and (1,446) (1,634) intangibles Tangible shareholders' $ 120,963 $ 103,596 equity Tangible shareholders' equity Tangible shareholders' $ 120,963 $ 103,596 equity (numerator) Tangible assets 1,144,784 971,720 (denominator) Tangible common equity 10.57% 10.66% to tangible assets End of period common shares 9,070,038 9,241,689 outstanding Book value per $ 13.50 $ 11.39 share Tangible book value per $ 13.34 $ 11.21 share Total shareholders' 10.68% 10.81% equity to total assets

Net Interest Margin Excluding Loan Fee Income

For the Three Months Ended September 30,

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 $ 120,078 $ 79 0.26% $ 111,019 $ 147 0.53%investments^(1)

Investment 1,187 2 0.67 1,138 2 0.70securities^(2)

Loans held for sale 610 - - 425 - -

Total loans^(3) 924,391 12,291 5.28 847,076 11,699 5.49

Totalinterest-earning 1,046,266 12,372 4.69 959,658 11,848 4.91assets

Noninterest-earning 5,607 7,386assets

Total assets $ 1,051,873 $ 967,044

Funding sources:

Interest-bearingliabilities:

Deposits:

Transaction $ 401,843 332 0.33% $ 381,572 545 0.57%accounts

Time deposits 220,189 397 0.72 200,961 780 1.54

Totalinterest-bearing 622,032 729 0.46 582,533 1,325 0.90deposits

Totalinterest-bearing 622,032 729 0.46 582,533 1,325 0.90liabilities

Noninterest-bearingliabilities:

Noninterest-bearing 304,063 276,219deposits

Othernoninterest-bearing 6,633 5,363liabilities

Totalnoninterest-bearing 310,696 281,582liabilities

Shareholders' 119,145 102,929equity

Total liabilitiesand shareholders' $ 1,051,873 $ 967,044equity

Net interest incomeexcluding loan fee $ 11,643 $ 10,523income

Net interest spreadexcluding loan fee 4.23% 4.01%income^(4)

Net interest marginexcluding loan fee 4.41% 4.36%income

Net Interest Margin Including Loan Fee Income For the Three Months Ended September 30, 2021 2020 Average Interest Average Average Interest Average Balance Income/ Yield/ Balance Income/ Yield/ Expense Rate Expense Rate (Dollars in thousands) Interest-Earning Assets: Short-term $ 120,078 $ 79 0.26% $ 111,019 $ 147 0.53% investments^(1) Investment 1,187 2 0.67 1,138 2 0.70 securities^(2) Loans held for sale 610 - - 425 - - Total loans^(3) 924,391 13,927 5.98 847,076 12,777 6.00 Total interest-earning 1,046,266 14,008 5.31 959,658 12,926 5.36 assets Noninterest-earning 5,607 7,386 assets Total assets $ 1,051,873 $ 967,044 Funding sources: Interest-bearing liabilities: Deposits: Transaction $ 401,843 332 0.33% $ 381,572 545 0.57% accounts Time deposits 220,189 397 0.72 200,961 780 1.54 Total interest-bearing 622,032 729 0.46 582,533 1,325 0.90 deposits Total interest-bearing 622,032 729 0.46 582,533 1,325 0.90 liabilities Noninterest-bearing liabilities: Noninterest-bearing $ 304,063 276,219 deposits Other noninterest-bearing 6,633 5,363 liabilities Total noninterest-bearing 310,696 281,582 liabilities Shareholders' 119,145 102,929 equity Total liabilities and shareholders' $ 1,051,873 $ 967,044 equity Net interest income including loan fee $ 13,279 $ 11,601 income Net interest spread including loan fee 4.85% 4.45% income^(4) Net interest margin including loan fee 5.04% 4.81% 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.

Net Interest Margin Excluding Loan Fee Income For the Nine Months Ended September 30, 2021 2020 Average Interest Average Average Interest Average Balance Income/ Yield/ Balance Income/ Yield/ Expense Rate Expense Rate (Dollars in thousands) Interest-Earning Assets: Short-term $ 124,801 $ 236 0.25% $ 120,909 $ 701 0.77% investments^(1) Investment 1,182 19 2.15 1,109 21 2.53 securities^(2) Loans held for sale 501 - - 258 - - Total loans^(3) 887,353 35,223 5.31 807,134 35,299 5.84 Total interest-earning 1,013,837 35,478 4.68 929,410 36,021 5.18 assets Noninterest-earning 5,927 8,439 assets Total assets $ 1,019,764 $ 937,849 Funding sources: Interest-bearing liabilities: Deposits: Transaction $ 410,299 1,024 0.33% $ 366,162 2,259 0.82% accounts Time deposits 212,706 1,352 0.85 208,650 2,769 1.77 Total interest-bearing 623,005 2,376 0.51 574,812 5,028 1.17 deposits Total interest-bearing 623,005 2,376 0.51 574,812 5,028 1.17 liabilities Noninterest-bearing liabilities: Noninterest-bearing 277,308 256,429 deposits Other noninterest-bearing 5,634 5,231 liabilities Total noninterest-bearing 282,942 261,660 liabilities Shareholders' 113,817 101,377 equity Total liabilities and shareholders' $ 1,019,764 $ 937,849 equity Net interest income excluding loan fee $ 33,102 $ 30,993 income Net interest spread excluding loan fee 4.17% 4.01% income^(4) Net interest margin excluding loan fee 4.37% 4.45% income

Net Interest Margin With Loan Fee Income For the Nine Months Ended September 30, 2021 2020 Average Interest Average Average Interest Average Balance Income/ Yield/ Balance Income/ Yield/ Expense Rate Expense Rate (Dollars in thousands) Interest-Earning Assets: Short-term $ 124,801 $ 236 0.25% $ 120,909 $ 701 0.77% investments^(1) Investment 1,182 19 2.15 1,109 21 2.53 securities^(2) Loans held for sale 501 - - 258 - - Total loans^(3) 887,353 41,377 6.23 807,134 39,268 6.50 Total interest-earning 1,013,837 41,632 5.49 929,410 39,990 5.75 assets Noninterest-earning 5,927 8,439 assets Total assets $ 1,019,764 $ 937,849 Funding sources: Interest-bearing liabilities: Deposits: Transaction $ 410,299 1,024 0.33% $ 366,162 2,259 0.82% accounts Time deposits 212,706 1,352 0.85 208,650 2,769 1.77 Total interest-bearing 623,005 2,376 0.51 574,812 5,028 1.17 deposits Total interest-bearing 623,005 2,376 0.51 574,812 5,028 1.17 liabilities Noninterest-bearing liabilities: Noninterest-bearing 277,308 256,429 deposits Other noninterest-bearing 5,634 5,231 liabilities Total noninterest-bearing 282,942 261,660 liabilities Shareholders' 113,817 101,377 equity Total liabilities and shareholders' $ 1,019,764 $ 937,849 equity Net interest income including loan fee $ 39,256 $ 34,962 income Net interest spread including loan fee 4.98% 4.58% income^(4) Net interest margin including loan fee 5.18% 5.02% 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 September 30, December 31, 2021 2020 Cash and due from banks $ $ 205,762 153,901 Interest-bearing time deposits in 5,229 16,412 other banks Loans, net 915,393 826,974 Loans held for sale 1,002 324 Premises and equipment, net 8,775 9,151 Nonmarketable equity securities 1,193 1,172 Goodwill and intangibles 1,446 1,583 Interest receivable and other assets 7,430 7,152 Total assets $ $ 1,146,230 1,016,669 Liabilities and Shareholders' Equity Deposits Noninterest-bearing $ $ 335,316 246,569 Interest-bearing 683,058 658,945 Total deposits 1,018,374 905,514 Interest payable and other liabilities 5,447 3,827 Total liabilities 1,023,821 909,350 Common stock 91 90 Additional paid-in capital 93,766 93,162 Retained earnings 28,552 14,067 Total shareholders' equity 122,409 107,319 Total liabilities and shareholders' $ $ equity 1,146,230 1,016,669

Bank7 Corp. Consolidated Statements of Income Unaudited as of Three Months Ended Nine Months Ended September 30, September 30, Dollars in thousands, 2021 2020 2021 2020 except per share data Interest Income Loans, including $ 13,927 $ 12,777 $ 41,377 $ 39,268 fees Interest-bearing time deposits in 35 123 141 419 other banks Interest-bearing deposits in 46 26 114 303 other banks Total interest 14,008 12,926 41,632 39,990 income Interest Expense Deposits 729 1,325 2,376 5,028 Total interest 729 1,325 2,376 5,028 expense Net Interest 13,279 11,601 39,256 34,962 Income Provision for 750 1,250 3,325 3,300 Loan Losses Net Interest Income After 12,529 10,351 35,931 31,662 Provision for Loan Losses Noninterest Income Secondary market 161 57 253 134 income Service charges on deposit 141 104 380 318 accounts Other 275 173 860 513 Total noninterest 577 334 1,493 965 income Noninterest Expense Salaries and employee 2,946 2,505 8,685 7,576 benefits Furniture and 218 224 651 658 equipment Occupancy 461 543 1,391 1,417 Data and item 292 276 857 821 processing Accounting, marketing and 150 135 447 338 legal fees Regulatory 162 164 464 281 assessments Advertising and 76 62 181 360 public relations Travel, lodging and 102 50 309 146 entertainment Other 372 625 1,213 1,463 Total noninterest 4,779 4,584 14,198 13,060 expense Income Before 8,327 6,101 23,226 19,567 Taxes Income tax 2,063 1,661 5,753 5,040 expense Net Income $ 6,264 $ 4,440 $ 17,473 $ 14,527 Earnings per common share - $ 0.69 $ 0.48 $ 1.93 $ 1.53 basic Diluted earnings 0.69 0.48 1.92 1.53 per common share Weighted average common shares 9,052,718 9,228,128 9,051,112 9,483,540 outstanding - basic Weighted average common shares 9,105,255 9,228,128 9,078,671 9,483,540 outstanding - diluted

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, October 21, 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/2179/43192 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/2179/43192 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.