UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported)
 
October 11, 2024
 
Bank7 Corp.
(Exact name of registrant as specified in its charter)
 
Oklahoma
001-38656
 20-0764349
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

1039 N.W. 63rd Street, Oklahoma City, Oklahoma 73116
(Address of principal executive offices) (Zip Code)

(405) 810-8600
 (Registrant’s telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading
Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 par value
 BSVN
The NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

 
Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.
Results of Operations and Financial Condition

Item 7.01
Regulation FD Disclosure

On October 11, 2024, Bank7 Corp. (the “Company”), the holding company for Bank7, issued a press release announcing its results of operation and financial condition for the quarter ended September 30, 2024.  A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

The Company is conducting a conference call on October 11, 2024 at 10:00 am CST to discuss its third quarter 2024 financial results. A copy of the presentation slides to be used during the earnings call is attached to this Current Report on Form 8-K as Exhibit 99.2 and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such filing.

Item 9.01
Financial Statements and Exhibits


(d)
Exhibits.

The following exhibits are filed herewith:

Item
  
Description
   
 
Press Release dated October 11, 2024
 
Third Quarter 2024 Investor Presentation

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
BANK7 CORP.
     
Date: October 11, 2024
By:
/s/   Kelly J. Harris
   
Kelly J. Harris
   
Executive Vice President and Chief Financial Officer


Exhibit 99.1


FOR IMMEDIATE RELEASE: Bank7 Corp. Announces Q3 2024 Earnings

Oklahoma City, October 11, 2024 – Bank7 Corp. (NASDAQ: BSVN) ("the Company"), the parent company of Oklahoma City-based Bank7 (the "Bank"), today reported unaudited results for the quarter ended September 30, 2024.  “We are pleased to announce another record quarter of net income and EPS.  Our properly matched balance sheet, disciplined approach to cost controls, and excellent credit quality continues to produce outstanding results” said Thomas L. Travis, President and CEO of the Company.”

For the three months ended September 30, 2024 compared to the three months ended September 30, 2023:

 
-
Net income of $11.8 million compared to $7.9 million, an increase of 49.97%
 
-
Earnings per share of $1.24 compared to $0.85, an increase of 45.88%
 
-
Total assets of $1.7 billion compared to $1.8 billion, a decrease of 1.80%
 
-
Total loans of $1.4 billion compared to $1.4 billion, an increase of 3.21%
 
-
PPE of $15.5 million compared to $14.4 million, an increase of 7.86%
 
-
Total interest income of $33.5 million compared to $31.7 million, an increase of 5.57%

Three months ended September 30, 2024 compared to three months ended June 30, 2024

 
-
Net income of $11.8 million compared to $11.5 million, an increase of 2.20%
 
-
Earnings per share of $1.24 compared to $1.23, an increase of 0.81%
 
-
Total assets of $1.7 billion compared to $1.7 billion, an increase of 3.42%
 
-
Total loans of $1.4 billion compared to $1.4 billion, an increase of 6.32%
 
-
PPE of $15.5 million compared to $15.3 million, an increase of 1.61%
 
-
Total interest income of $33.5 million compared to $32.4 million, an increase of 3.24%

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, 2024, the Bank’s Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 11.64%, 12.93%, and 14.12%, respectively.  On September 30, 2024, on a consolidated basis, the Company’s Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 11.64%, 12.92%, and 14.11%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

Non-GAAP Financial Measures:
This earnings release contains the non-GAAP financial measure pre-provision pre-tax earnings (“PPE”).  The Company’s management uses this non-GAAP measure in their analysis of the Company’s performance.  This measure adjusts GAAP performance to exclude from net income, income tax expense, provision for credit losses, and loss on sales and calls of available-for-sale debt securities.

   
For the Three Months Ended
  
   
September 30,
 2024
    
June 30,
 2024
    
September 30,
 2023
  
Calculation of Pre-Provision Pre-Tax Earnings ("PPE")
  
(Dollars in thousands)
  
Net Income
  
$
11,777
    
$
11,524
    
$
7,853
  
Income Tax Expense
    
3,719
      
3,731
      
2,351
  
Pre-tax net income
    
15,496
      
15,255
      
10,204
  
Add back: Provision for credit losses
    
-
      
-
      
4,159
  
Add back: (Gain)Loss on sales/calls of AFS debt securities
    
4
      
-
      
7
  
Pre-provision pre-tax earnings
    
15,500
      
15,255
      
14,370
  

Assets
  
September 30,
2024
(unaudited)
    
December 31,
2023
  
             
Cash and due from banks
  
$
186,720
    
$
181,042
  
Interest-bearing time deposits in other banks
    
8,715
      
17,679
  
Available-for-sale debt securities
    
65,160
      
169,487
  
Loans, net of allowance for credit losses of $17,873 and $19,691 at September 30, 2024 and December 31, 2023, respectively
    
1,419,671
      
1,341,148
  
Loans held for sale, at fair value
    
-
      
718
  
Premises and equipment, net
    
17,126
      
14,942
  
Nonmarketable equity securities
    
1,278
      
1,283
  
Core deposit intangibles
    
907
      
1,031
  
Goodwill
    
8,458
      
8,458
  
Interest receivable and other assets
    
32,407
      
35,878
  
                 
Total assets
  
$
1,740,442
    
$
1,771,666
  
                 
Liabilities and Shareholders’ Equity
                
                 
Deposits
                
Noninterest-bearing
  
$
322,480
    
$
482,349
  
Interest-bearing
    
1,201,736
      
1,109,042
  
                 
Total deposits
    
1,524,216
      
1,591,391
  
                 
Income taxes payable
    
427
      
302
  
Interest payable and other liabilities
    
11,637
      
9,647
  
                 
Total liabilities
    
1,536,280
      
1,601,340
  
                 
Shareholders’ equity
                

               
Common stock, $0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,341,267 and 9,197,696 at September 30, 2024 and December 31, 2023, respectively
    
93
      
92
  
Additional paid-in capital
    
100,760
      
97,417
  
Retained earnings
    
107,426
      
78,962
  
Accumulated other comprehensive loss
    
(4,117
)
    
(6,145
)
                 
Total shareholders’ equity
    
204,162
      
170,326
  
                 
Total liabilities and shareholders’ equity
  
$
1,740,442
    
$
1,771,666
  

   
Three Months Ended
    
Nine Months Ended
  
   
September 30,
    
September 30,
  
   
2024
(unaudited)
    
2023
    
2024
(unaudited)
    
2023
  
Interest Income
                        
Loans, including fees
  
$
30,791
    
$
28,880
    
$
89,834
    
$
81,117
  
Interest-bearing time deposits in other banks
    
177
      
159
      
675
      
270
  
Debt securities, taxable
    
303
      
699
      
2,266
      
2,106
  
Debt securities, tax-exempt
    
69
      
81
      
214
      
253
  
Other interest and dividend income
    
2,148
      
1,903
      
6,221
      
5,398
  
                                 
Total interest income
    
33,488
      
31,722
      
99,210
      
89,144
  
                                 
Interest Expense
                                
Deposits
    
12,271
      
10,976
      
34,752
      
27,894
  
                                 
Total interest expense
    
12,271
      
10,976
      
34,752
      
27,894
  
                                 
Net Interest Income
    
21,217
      
20,746
      
64,458
      
61,250
  
                                 
Provision for Credit Losses
    
-
      
4,159
      
-
      
5,645
  
                                 
Net Interest Income After Provision for Credit Losses
    
21,217
      
16,587
      
64,458
      
55,605
  
                                 
Noninterest Income
                                
Mortgage lending income
    
103
      
6
      
233
      
172
  
Loss on sales, prepayments, and calls of available-for-sale debt securities
    
(4
)
    
(7
)
    
(4
)
    
(15
)
Service charges on deposit accounts
    
233
      
213
      
742
      
647
  
Other
    
3,345
      
795
      
7,881
      
1,668
  
                                 
Total noninterest income
    
3,677
      
1,007
      
8,852
      
2,472
  
                                 
Noninterest Expense
                                
Salaries and employee benefits
    
5,333
      
4,910
      
15,740
      
14,299
  
Furniture and equipment
    
258
      
254
      
813
      
755
  
Occupancy
    
711
      
662
      
1,985
      
1,980
  
Data and item processing
    
498
      
424
      
1,437
      
1,280
  
Accounting, marketing and legal fees
    
218
      
14
      
582
      
491
  
Regulatory assessments
    
261
      
279
      
984
      
1,013
  
Advertsing and public relations
    
129
      
74
      
358
      
273
  
Travel, lodging and entertainment
    
87
      
85
      
270
      
255
  
Other
    
1,903
      
688
      
5,507
      
2,068
  
                                 
Total noninterest expense
    
9,398
      
7,390
      
27,676
      
22,414
  
                                 
Income Before Taxes
    
15,496
      
10,204
      
45,634
      
35,663
  
Income tax expense
    
3,719
      
2,351
      
11,045
      
8,457
  
Net Income
  
$
11,777
    
$
7,853
    
$
34,589
    
$
27,206
  
                                 
Earnings per common share - basic
  
$
1.26
    
$
0.86
    
$
3.73
    
$
2.97
  
Earnings per common share - diluted
    
1.24
      
0.85
      
3.68
      
2.94
  
Weighted average common shares outstanding - basic
    
9,323,622
      
9,158,027
      
9,264,616
      
9,152,788
  
Weighted average common shares outstanding - diluted
    
9,498,318
      
9,273,595
      
9,402,214
      
9,262,003
  
                                 
Other comprehensive income (loss)
                                
Unrealized gains (losses) on securities, net of tax expense of $515 and tax benefit of $485 for the three months ended September 30, 2024 and 2023, respectively; net of tax expense of $638 and $70 for the nine months ended September 30, 2024 and 2023, respectively
  
$
1,628
    
$
(372
)
  
$
2,025
    
$
214
  
Reclassification adjustment for realized losses included in net income net of tax of $1 and $2 for the three months ended September 30, 2024 and 2023, respectively; $1 and $4 for the nine months ended September 30, 2024 and 2023, respectively
    
3
      
5
      
3
      
11
  
Other comprehensive income (loss)
  
$
1,631
    
$
(367
)
  
$
2,028
    
$
225
  
Comprehensive Income
  
$
13,408
    
$
7,486
    
$
36,617
    
$
27,431
  

   
Net Interest Margin
  
   
For the Nine Months Ended September 30,
  
   
2024
(unaudited)
    
2023
  
   
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
  
$
180,426
    
$
6,896
      
5.09
%
  
$
162,432
    
$
5,668
      
4.67
%
Debt securities, taxable-equivalent
    
103,507
      
2,266
      
2.92
      
152,702
      
2,106
      
1.84
  
Debt securities, tax exempt
    
17,468
      
214
      
1.63
      
19,828
      
253
      
1.71
  
Loans held for sale
    
281
      
-
      
-
      
115
      
-
      
-
  
Total loans(1)
    
1,381,200
      
89,834
      
8.66
      
1,299,754
      
81,117
      
8.34
  
Total interest-earning assets
    
1,682,882
      
99,210
      
7.85
      
1,634,831
      
89,144
      
7.29
  
Noninterest-earning assets
    
39,499
                      
22,560
                  
Total assets
  
$
1,722,381
                    
$
1,657,391
                  
                                                 
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
872,635
      
25,726
      
3.93
%
  
$
812,962
      
20,346
      
3.35
%
Time deposits
    
255,348
      
9,026
      
4.71
      
257,418
      
7,548
      
3.92
  
Total interest-bearing deposits
    
1,127,983
      
34,752
      
4.10
      
1,070,380
      
27,894
      
3.48
  
Total interest-bearing liabilities
    
1,127,983
      
34,752
      
4.10
      
1,070,380
      
27,894
      
3.48
  
                                                 
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
    
395,822
                      
420,356
                  
Other noninterest-bearing liabilities
    
12,219
                      
10,496
                  
Total noninterest-bearing liabilities
    
408,041
                      
430,852
                  
Shareholders' equity
    
186,357
                      
156,159
                  
Total liabilities and shareholders' equity
  
$
1,722,381
                    
$
1,657,391
                  
                                                 
Net interest income
          
$
64,458
                    
$
61,250
          
Net interest spread
                    
3.75
%
                    
3.81
%
Net interest margin
                    
5.10
%
                    
5.01
%

(1)
Nonaccrual loans are included in total loans

   
Net Interest Margin
  
   
For the Three Months Ended September 30,
  
   
2024
(unaudited)
    
2023
  
   
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
  
$
191,583
    
$
2,325
      
4.81
%
  
$
176,589
    
$
2,062
      
4.63
%
Debt securities, taxable-equivalent
    
51,172
      
303
      
2.35
      
151,174
      
699
      
1.83
  
Debt securities, tax exempt
    
16,889
      
69
      
1.62
      
19,430
      
81
      
1.65
  
Loans held for sale
    
250
      
-
      
-
      
232
      
-
      
-
  
Total loans(1)
    
1,418,512
      
30,791
      
8.61
      
1,344,038
      
28,880
      
8.52
  
Total interest-earning assets
    
1,678,406
      
33,488
      
7.92
      
1,691,463
      
31,722
      
7.44
  
Noninterest-earning assets
    
40,002
                      
23,407
                  
Total assets
  
$
1,718,408
                    
$
1,714,870
                  
                                                 
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
922,117
      
9,237
      
3.97
%
  
$
823,331
      
7,733
      
3.73
%
Time deposits
    
253,640
      
3,034
      
4.75
      
292,235
      
3,243
      
4.40
  
Total interest-bearing deposits
    
1,175,757
      
12,271
      
4.14
      
1,115,566
      
10,976
      
3.90
  
Total interest-bearing liabilities
  
$
1,175,757
      
12,271
      
4.14
    
$
1,115,566
      
10,976
      
3.90
  
                                                 
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
  
$
332,487
                    
$
422,691
                  
Other noninterest-bearing liabilities
    
12,221
                      
11,649
                  
Total noninterest-bearing liabilities
    
344,708
                      
434,340
                  
Shareholders' equity
    
197,943
                      
164,964
                  
Total liabilities and shareholders' equity
  
$
1,718,408
                    
$
1,714,870
                  
                                                 
Net interest income
          
$
21,217
                    
$
20,746
          
Net interest spread
                    
3.78
%
                    
3.54
%
Net interest margin
                    
5.02
%
                    
4.87
%

(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 third quarter results, which will be broadcast live over the Internet, on Friday, October 11, 2024 at 10:00 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/A87GMojkvZD. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/A87GMojkvZD 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 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
 

Exhibit 99.2

 Q3 2024   Earnings Release  BSVN  October 11, 2024 
 
 BSVN – Corporate Overview  Consistently ranked by S & P Global Market Intelligence as one of the Top Performing Community Banks in the United States  Consistently produce top quartile(3) earnings and ROATCE  Proven ability to maintain a healthy net interest margin through challenging interest rate cycles  Abundant liquidity and a properly matched balance sheet  Disciplined credit culture that adheres to a robust risk management framework  Experienced and talented bankers focused on high-touch personalized service, targeting entrepreneurs and their commercial banking needs  Positioned in dynamic markets with a commercial banking emphasis delivering services via a branch-lite model  Shareholder alignment due to 56% insider ownership   Dollars in thousands, all data as of September 30, 2024, unless indicated otherwise  Pre-provision, pre-tax earnings (“PPE”) is a non-GAAP financial measure. See appendix for reconciliation to their most comparable GAAP measure  Diluted earnings per share, as presented  See slide 4 for the corresponding comparison between BSVN and peer group   Bank7 Branch  Dallas / Fort Worth  Tulsa  Oklahoma City 
 
 Q3 Overview  Asset Quality & CRE  Dollars in thousands, all data as of September 30, 2024, unless indicated otherwise  Gross revenue of $2.93 million and gross expense of $1.16 million; pre-tax net income of $1.77 million and net income of $1.35 million.  Net interest income excluding loan fees is a non-GAAP financial measure. See appendix for reconciliation to the most comparable GAAP measure  See slide 10 for adjusted uninsured deposit calculation  $1.02 billion of gross loans reprice daily, with $33.09 million of those loans that are at their floor  Q3 EPS of $1.24, a 0.81% increase from Q2 2024; excluding net income from oil and gas(1), core banking EPS was $1.12  Low efficiency ratio of 37.87%  Net interest margin, excluding loan fee income(2), decreased 2bps to 4.65% as compared to Q2 2024  Disciplined balance sheet management continues to produce a steady net interest margin which drives earnings  EPS results were achieved through core earnings with no shares repurchased  Record EPS & Reliable Net Interest Margin  CET1 Capital: 12.92%  Tier 1 Leverage: 11.64%  TCE/TA: 11.25%  Exceptional earnings and low dividend payout ratio builds capital rapidly  Capital ratios far exceed “well capitalized” regulatory guidelines  Debt free Balance Sheet, and no HTM securities   Prudent Capital Management  Uninsured deposits represent 22.61% of total deposits, and adjusted uninsured deposits represent 16.12% of total deposits(3)  The sum of cash plus unpledged securities and undrawn lines-of-credit equals $711.54 million, which significantly exceeds adjusted uninsured deposits of $245.75 million(3), a 2.90x coverage  $1.20 billion or 83.19% of loans reprice in 1 year or less, with $1.02 billion(4) or 70.92% repricing daily  AOCI is only $4.12 million; the average investment portfolio duration is ~3.3 years  Consistent Balance Sheet Management & Liquidity  NPLs to Total Loans of 0.54%  Diverse CRE portfolio primarily located in the DFW and Oklahoma City Metros  Office Loan Average Size, excluding construction is $0.79 million:  Owner Occupied — $0.65 million  Non-Owner Occupied — $1.10 million 
 
 Maximizing Our Employee Base (3)  PPE(1)  1.61% increase   Strength in Core Earnings  10.44% increase   Dollars are in millions  Financial data is as of or for the twelve months ended December 31 of each respective year, and as of or for the three and nine months ended September 30, 2023 and September 30, 2024, and for the three months ended June 30, 2024  Pre-provision, pre-tax earnings (“PPE”) is a non-GAAP financial measure. See appendix for reconciliation to their most comparable GAAP measure  Pro Forma 2019 is a non-GAAP financial measure which adds back the one-time, extraordinary compensation expense related to the non-cash executive stock transaction that took place during the period. See 2019 Pro Forma Net Income reconciliation table for detailed calculation of this measure  Pro Forma noninterest expense to average assets is a non-GAAP financial measure. See appendix for reconciliation to their most comparable GAAP measure  Pro Forma  $26.8  $15.1  Strong PPE:  Quarterly PPE of $15.50 million, an increase of 1.61% as compared to quarterly Q2 2024  YTD PPE of $45.64 million, an increase of 10.44% as compared to YTD Q3 2023  PPE was driven by:  Disciplined loan pricing  Asset sensitive balance sheet  Expense controls  We achieve maximum productivity by:  Hiring fewer but better FTEs  Operating an efficient delivery system with a strict adherence to process  3.56%  Actual  Pro  Forma  2  2 
 
 Consistently Outperforming our Peer Group  Income Statement as a Percentage of Average Assets  PPE to Average Assets vs Peers  Dollars are in thousands  Peer group is defined as exchange-traded banks nationwide with assets between $500mm-$5bn (145 banks); Source: S&P Global Market Intelligence.  As of Q2 2024, the latest data available.  
 
 Return on Average Tangible Common Equity (1)  5 year average: 20.5%  Efficiency Ratio (1)  5 year average: 37.3%   Return on Average Assets (1)  5 year average: 2.1%   Consistent Top Performer  Financial data is as of or for the twelve months ended December 31 of each respective year and as of or for the three months ended September 30, 2024 and June 30, 2024  Pro Forma ROAA, ROATCE and efficiency ratio are non-GAAP financial measures, see Appendix for reconciliation to the most comparable GAAP measures for these metrics  20.90%  Pro   Forma  2.51%  1.03%  Pro  Forma  Industry-leading performance ratios remain top-tier and within our historical ranges  Pro   Forma  8.60%  38.83% 
 
 Diluted Earnings Per Share  0.81% Increase   Pro Forma  $0.81  Tangible Book Value Per Share  CAGR since 2018: 17.0%   Record EPS:  $1.24 for Q3, a 0.81% increase from Q2 2024; excluding net income from oil and gas, we achieved a core banking EPS of $1.12  $3.68 for Q3 YTD, an 25.24% increase from YTD Q3 2023  No share repurchases since 2020  Reliable and Rapid Capital Compounder  Dollars are in thousands, except for per share data  Pro Forma 2019 is a non-GAAP financial measure which adds back the one-time, extraordinary compensation expense related to the non-cash executive stock transaction that took place during the period See 2019 Pro Forma Net Income reconciliation table for detailed calculation of this measure  TBV per share of $20.85, an increase of $3.37 or 19.25% as compared to YE 2023  Consistently strong earnings increased TBV despite three factors:  $0.85 per share paid for an all-cash acquisition in Q4 2021  $0.44 per share AOCI unrealized loss from investments  $3.33 per share paid in cash dividends, since IPO  1 
 
 CAGR since 2018: 15.6%   BSVN Compared to All Major Exchange Traded Banks  Source: S&P Global Market Intelligence and FactSet; Market data as of 9/30/2024  Total shareholder return includes the reinvestment of dividends  Public banks include all major exchange-traded banks nationwide (317 banks)  Total Shareholder Return Since BSVN’s IPO (9/2018)  BSVN’s TBVPS Since FYE 2018  (1)  $100 invested in BSVN since IPO would be worth $231.99 now  $100 invested in an index of all public banks since BSVN’s IPO would be worth $113.51 now  BSVN: 132.0%  Median: 13.5%  118.5% Outperformance  Public Banks Median CAGR: 5.6%(1) 
 
 Consistent Net Interest Margin  Financial data is as of or for the twelve months ended December 31 of each respective year and as of or for the three months ended June 30, 2024 and September 30,2024  Net interest margin (excluding loan fee income) is a non-GAAP financial measure, see Appendix for reconciliation to the most comparable GAAP measure for this metric  ◼︎ Loan Fee Income Contribution  Net interest margin remains within our historical range due to disciplined loan pricing, a healthy amount of non-interest bearing deposits, and our asset sensitive balance sheet  The 50 basis point (bps) rate cut during the quarter had a neutral impact on net interest margin; loan yields concluded the quarter at 7.86%, marking a 32 bps reduction from immediately before the rate cut. This represents a 64% beta relative to the full rate cut. Concurrently, the cost of funds (COF) for deposits finished the quarter at 3.00%, also down 32 bps from pre-cut levels, reflecting a 64% beta.  Q3 average loan yields increased 10 bps to 8.18% and cost of funds increased 22 bps to 3.23% and was due to a continued shift to interest-bearing deposits   There are currently $33.09 million of loan floaters at their floor; this increases to $124.87 million at their floor with another 100 bps in rate cuts; and increases to $459.77 million with 200 bps in rate cuts 
 
 We Achieve a Steady Spread thru Various Rate Cycles 
 
 Asset Sensitivity Repricing and Liquidity  Dollars in thousands, all data as of September 30,2024, unless indicated otherwise  $1.02 billion of gross loans reprice daily, with $33.09 million of those loans that are at their floor  Asset Sensitivity Repricing Schedule  (1)  70.92% of all earning assets reprice within one year or less and combined with a properly matched balance sheet, are key drivers of our consistent net interest margin  Uninsured deposits total $344.61 million or 22.61% of total deposits; however, after deductions for insider owned, and also collateralized deposits, adjusted uninsured deposits are $245.75 million, which is 16.12% of total deposits  Cash, securities, and undrawn lines of credit totaled $711.54 million, providing a 2.90x coverage of adjusted uninsured deposits  Uninsured Deposits | Cash/Liquidity  Liquidity 
 
 Deposit Composition  Deposit Composition  CAGR since 2019: 13.0%  Dollars in millions  Decrease in non-interest bearing deposits, as compared to 2023, relates to a $100.00 million deposit that was directed to BSVN by a bankruptcy court which has now been dispersed  1 
 
 Loan Portfolio Trends  Loan Portfolio Trends – Selected Categories  Dollars are in millions  CAGR Since 2019: 13.2%  12.0%  26.1%  20.4%  41.6% 
 
 Loan Portfolio Distribution  Dollars are in millions. Data as of September 30, 2024  Loan Portfolio  Selected Categories 
 
 Diverse CRE Portfolio with Very Low Historical Losses  Dollars are in millions. Data as of September 30, 2024  Diverse commercial real estate lending activity in Texas and Oklahoma with an emphasis in the DFW, Oklahoma City, and Tulsa metros  Minimal office loans  No office exposure to downtown metropolitan locations  Office Loan Average Size, excluding construction is $0.79 million:  Owner Occupied — $0.65 million  Non-Owner Occupied — $1.10 million  Construction lending activity primarily in Oklahoma City and the Dallas metroplex with an emphasis on entry level homes with established homebuilders  Limited lot and development lending activity  Hospitality niche managed by seasoned professionals with proven track record through various economic cycles   CONSTRUCTION  OWNER OCCUPIED 
 
 Hotel Portfolio by Class  Hotel Portfolio by Location  Hospitality Loan Portfolio – A Source of Strength  Dollars are in millions. Data as of September 30, 2024  No historical NCOs in the hospitality segment  Blue collar portfolio that is well-protected by the “cycle-down” effect of a recession   Geographically concentrated in TX (82%) and other markets with favorable economic conditions  Loans personally guaranteed by experienced owner/operators with operating history spanning decades of economic cycles  Diversified lending to many reputable brands  Consistent underwriting fundamentals with disciplined equity requirements, debt coverage ratio requirements, personal recourse, and rapid amortization  Average loan size of $5.71 million  3.56%  Actual  Hotel Portfolio by Location 
 
 Total Assets  Strategic Growth in Dynamic Markets  Dollars are in millions  2014   2015  2016  2017  2018  2019  2020  2021  2022  2023  Q3 2024  LPO opened in Tulsa, OK, full-service branch opened in Frisco, TX  Oklahoma acquisition  Full-service branch opened in Tulsa, OK   Completed IPO  Full-service branch opened in Irving, TX  LPO opened in  Irving, TX  Kansas acquisition  CAGR Since 2014: 14.2%  
 
 Earnings-driven Capital Shock-absorption  Earnings-driven cushion far exceeds regulatory capital minimums as illustrated over a two-year period, consistent with DFAST parameters(1)  Dollars are in thousands  above assumes no cash dividends and is simply an illustration and should not be considered a projection or forward-looking guidance of any kind  DFAST = Dodd-Frank Act Stress Test  Excess capital to target ratio expressed in % is the difference between the actual ratio and regulatory minimum divided by the regulatory minimum  Excess capital to target ratio expressed in $ is the excess capital % multiplied by either average assets or risk-weighted assets, assuming a static balance sheet over the next 24 months   Trailing twelve months PPE of $62.7 million extrapolated over two years 
 
 Appendix 
 
 Bank7 Corp. Financials  BSVN adopted the CECL model (ASC326) on 1/1/2023 using the modified retrospective method. The presented allowance for periods prior to 1/1/2023 is under the incurred loss model (pre-ASC326).  Represents a non-GAAP financial measure. See non-GAAP reconciliations table for reconciliation to most comparable GAAP measure for this metric  All pro forma amounts relate to the one-time, non-cash executive stock transfer which occurred in September 2019. These amounts remove the compensation and related tax impact from net income. See detail and reconciliation on slide 25 of this presentation 
 
 Bank7 Corp. Performance Ratios  Annualized  Efficiency ratio is calculated by dividing noninterest expense by the sum of net interest income on a tax equivalent basis and noninterest income     Represents a non-GAAP financial measure, see non-GAAP reconciliations table for reconciliation to the most comparable GAAP measure for this metric  Ratios are based on Bank level financial information rather than consolidated information. At September 30, 2024, Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.64%, 12.92%, and 14.11% respectively for the Company  All pro forma amounts relate to the one-time, non-cash executive stock transfer which occurred in September 2019. These amounts remove the compensation expense and related tax impact from net income. See detail and reconciliation on slide 25 of this presentation 
 
 Non-GAAP Reconciliations 
 
 Non-GAAP Reconciliations -- Continued 
 
 Oil & Gas – Cash Flow Recap 
 
 Available-for-Sale Securities Portfolio  Investment Portfolio  Dollars are in millions.  All mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities.  Total investment securities of $65.2 million as of September 30, 2024  Weighted Average Duration: 3.3 Years  Book Yield: 2.04% 
 
 2019 Pro Forma Net Income Reconciliation  On September 5, 2019, the largest shareholders, Haines Family Trusts, contributed approximately 6.5% of their shares (656,925 shares) to the Company.  Subsequently, the Company immediately issued those shares to certain executive officers, which was charged as compensation expense of $11.8 million, including payroll taxes, through the income statement of the Company. Additionally, at the discretion of the employees receiving shares to assist in paying tax withholdings, 149,425 shares were withheld and subsequently canceled, resulting in a charge to retained earnings of $2.6 million. 
 
 Legal Information and Distribution  This presentation and oral statements made regarding the subject of this presentation contain forward-looking statements. 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. 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. 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.     Within this presentation, we reference certain market, industry and demographic data, forecasts and other statistical information. We have obtained this data, forecasts and information from various independent, third party industry sources and publications. Nothing in the data, forecasts or information used or derived from third party sources should be construed as advice. Some data and other information are also based on our good faith estimates, which are derived from our review of industry publications and surveys and independent sources. We believe that these sources and estimates are reliable, but have not independently verified them. Statements as to our market position are based on market data currently available to us. Although we are not aware of any misstatements regarding the economic, employment, industry and other market data presented herein, these estimates involve inherent risks and uncertainties and are based on assumptions that are subject to change.     This presentation includes certain non-GAAP financial measures, including pro forma net income, 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 in the appendix of this presentation for a reconciliation of the non-GAAP financial measures used in (or conveyed orally during) this presentation to their most directly comparable GAAP financial measures. 
 
 



v3.24.3
Document and Entity Information
Oct. 11, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Oct. 11, 2024
Entity File Number 001-38656
Entity Registrant Name Bank7 Corp.
Entity Central Index Key 0001746129
Entity Incorporation, State or Country Code OK
Entity Tax Identification Number 20-0764349
Entity Address, Address Line One 1039 N.W. 63rd Street
Entity Address, City or Town Oklahoma City
Entity Address, State or Province OK
Entity Address, Postal Zip Code 73116
City Area Code 405
Local Phone Number 810-8600
Title of 12(b) Security Common Stock, $0.01 par value
Trading Symbol BSVN
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
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