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)
 
July 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 July 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 June 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 July 11, 2024 at 10:00 am CST to discuss its second 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 July 11, 2024
 
Second 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: July 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 Q2 2024 Earnings

Oklahoma City, July 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 June 30, 2024.  “We are pleased to announce another record quarter of net income and EPS.  Our asset sensitive 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 June 30, 2024 compared to the three months ended June 30, 2023:


 -
Net income of $11.5 million compared to $9.7 million, an increase of 18.24%

-
Earnings per share of $1.23 compared to $1.05, an increase of 17.14%

-
Total assets of $1.7 billion compared to $1.7 billion, an increase of 0.10%

-
Total loans of $1.4 billion compared to $1.3 billion, an increase of 5.94%

-
PPE of $15.3 million compared to $13.9 million, an increase of 9.57%

-
Total interest income of $32.4 million compared to $30.0 million, an increase of 7.74%

Three months ended June 30, 2024 compared to three months ended March 31, 2024


 -
Net income of $11.5 million compared to $11.3 million, an increase of 2.09%

-
Earnings per share of $1.23 compared to $1.21, an increase of 1.65%

-
Total assets of $1.7 billion compared to $1.8 billion, a decrease of 5.19%

-
Total loans of $1.4 billion compared to $1.4 billion, a decrease of 1.59%

-
PPE of $15.3 million compared to $14.9 million, an increase of 2.50%

-
Total interest income of $32.4 million compared to $33.3 million, a decrease of 2.76%

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 June 30, 2024, the Bank’s Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratios were 11.12%, 13.04%, and 14.28%, respectively.  On June 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 11.12%, 13.03%, and 14.27%, 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
  
   
June 30, 2024
    
March 31, 2024
    
June 30, 2023
  
Calculation of Pre-Provision Pre-Tax Earnings ("PPE")
  
(Dollars in thousands)
  
Net Income
  
$
11,524
    
$
11,288
    
$
9,746
  
Income Tax Expense
    
3,731
      
3,595
      
3,158
  
Pre-tax net income
    
15,255
      
14,883
      
12,904
  
Add back: Provision for credit losses
    
-
      
-
      
1,011
  
Add back: (Gain)Loss on sales/calls of AFS debt securities
    
-
      
-
      
7
  
Pre-provision pre-tax earnings
    
15,255
      
14,883
      
13,922
  

Bank7 Corp.
Consolidated Balance Sheets

Assets
  
June 30, 2024
(unaudited)
    
December 31, 2023
  
             
Cash and due from banks
  
$
210,105
    
$
181,042
  
Interest-bearing time deposits in other banks
    
12,202
      
17,679
  
Available-for-sale debt securities
    
66,284
      
169,487
  
Loans, net of allowance for credit losses of $17,772 and $19,691 at June 30, 2024 and December 31, 2023, respectively
    
1,334,317
      
1,341,148
  
Loans held for sale, at fair value
    
-
      
718
  
Premises and equipment, net
    
16,736
      
14,942
  
Nonmarketable equity securities
    
1,275
      
1,283
  
Core deposit intangibles
    
938
      
1,031
  
Goodwill
    
8,458
      
8,458
  
Income taxes receivable
    
358
      
-
  
Interest receivable and other assets
    
32,240
      
35,878
  
                 
Total assets
  
$
1,682,913
    
$
1,771,666
  
                 
Liabilities and Shareholders’ Equity
                
                 
Deposits
                
Noninterest-bearing
  
$
350,324
    
$
482,349
  
Interest-bearing
    
1,130,993
      
1,109,042
  
                 
Total deposits
    
1,481,317
      
1,591,391
  
                 
Income taxes payable
    
-
      
302
  
Interest payable and other liabilities
    
10,790
      
9,647
  
                 
Total liabilities
    
1,492,107
      
1,601,340
  
                 
Shareholders’ equity
                
Common stock, $0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,253,038 and 9,197,696 at June 30, 2024 and December 31, 2023, respectively
    
93
      
92
  
Additional paid-in capital
    
98,570
      
97,417
  
Retained earnings
    
97,891
      
78,962
  
Accumulated other comprehensive loss
    
(5,748
)
    
(6,145
)
                 
Total shareholders’ equity
    
190,806
      
170,326
  
                 
Total liabilities and shareholders’ equity
  
$
1,682,913
    
$
1,771,666
  

   
Three Months Ended
    
Six Months Ended
  
   
June 30,
    
June 30,
  
   
2024
(unaudited)
    
2023
    
2024
(unaudited)
    
2023
  
Interest Income
                        
Loans, including fees
  
$
28,926
    
$
26,885
    
$
59,043
    
$
52,237
  
Interest-bearing time deposits in other banks
    
246
      
62
      
499
      
111
  
Debt securities, taxable
    
951
      
701
      
1,963
      
1,407
  
Debt securities, tax-exempt
    
71
      
85
      
144
      
172
  
Other interest and dividend income
    
2,242
      
2,309
      
4,074
      
3,495
  
                                 
Total interest income
    
32,436
      
30,042
      
65,723
      
57,422
  
                                 
Interest Expense
                                
Deposits
    
11,204
      
9,544
      
22,481
      
16,918
  
                                 
Total interest expense
    
11,204
      
9,544
      
22,481
      
16,918
  
                                 
Net Interest Income
    
21,232
      
20,498
      
43,242
      
40,504
  
                                 
Provision for Credit Losses
    
-
      
1,011
      
-
      
1,485
  
                                 
Net Interest Income After Provision for Credit Losses
    
21,232
      
19,487
      
43,242
      
39,019
  
                                 
Noninterest Income
                                
Mortgage lending income
    
78
      
112
      
129
      
166
  
Loss on sales, prepayments, and calls of available-for-sale debt securities
    
-
      
(7
)
    
-
      
(8
)
Service charges on deposit accounts
    
260
      
199
      
509
      
434
  
Other
    
2,827
      
490
      
4,536
      
874
  
                                 
Total noninterest income
    
3,165
      
794
      
5,174
      
1,466
  
                                 
Noninterest Expense
                                
Salaries and employee benefits
    
5,118
      
4,709
      
10,407
      
9,389
  
Furniture and equipment
    
324
      
251
      
554
      
500
  
Occupancy
    
613
      
599
      
1,273
      
1,318
  
Data and item processing
    
481
      
469
      
939
      
856
  
Accounting, marketing and legal fees
    
264
      
179
      
364
      
478
  
Regulatory assessments
    
336
      
339
      
723
      
734
  
Advertsing and public relations
    
83
      
52
      
229
      
200
  
Travel, lodging and entertainment
    
131
      
110
      
183
      
171
  
Other
    
1,792
      
669
      
3,606
      
1,381
  
                                 
Total noninterest expense
    
9,142
      
7,377
      
18,278
      
15,027
  
                                 
Income Before Taxes
    
15,255
      
12,904
      
30,138
      
25,458
  
Income tax expense
    
3,731
      
3,158
      
7,326
      
6,105
  
Net Income
  
$
11,524
    
$
9,746
    
$
22,812
    
$
19,353
  
                                 
Earnings per common share - basic
  
$
1.25
    
$
1.06
    
$
2.47
    
$
2.12
  
Earnings per common share - diluted
    
1.23
      
1.05
      
2.44
      
2.09
  
Weighted average common shares outstanding - basic
    
9,250,332
      
9,153,077
      
9,235,176
      
9,150,022
  
Weighted average common shares outstanding - diluted
    
9,367,247
      
9,247,101
      
9,337,918
      
9,256,450
  
                                 
Other Comprehensive Income
                                
Unrealized gains (losses) on securities, net of tax expense of $123 and tax benefit $0 for the three months ended June 30, 2024 and 2023, respectively; net of tax expense of $123 and tax benefit of $554 for the six months ended June 30, 2024 and 2023, respectively
   $
(59

)		    
$

 (1,169
 )
  $ 397
    $
586
  
Reclassification adjustment for realized losses included in net income net of tax of $0 and $2 for the three months ended June 30, 2024 and 2023, respectively; $0 and $2 for the six months ended June 30, 2024 and 2023, respectively
    
-
      
5
      
-
      
6
  
Other comprehensive income (loss)
  
$
(59
)
  
$
(1,164
)
  
$
397
    
$
592
  
Comprehensive Income
  
$
11,465
    
$
8,582
    
$
23,209
    
$
19,945
  

   
Net Interest Margin
  
   
For the Six Months Ended June 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
  
$
174,787
    
$
4,573
      
5.25
%
  
$
154,896
    
$
3,606
      
4.69
%
Debt securities, taxable-equivalent
    
129,963
      
1,963
      
3.03
      
153,478
      
1,407
      
1.85
  
Debt securities, tax exempt
    
17,761
      
144
      
1.63
      
20,030
      
172
      
1.73
  
Loans held for sale
    
297
      
-
      
-
      
56
      
-
      
-
  
Total loans(1)
    
1,362,339
      
59,043
      
8.69
      
1,277,245
      
52,237
      
8.25
  
Total interest-earning assets
    
1,685,147
      
65,723
      
7.82
      
1,605,705
      
57,422
      
7.21
  
Noninterest-earning assets
    
39,246
                      
24,299
                  
Total assets
  
$
1,724,393
                    
$
1,630,004
                  
                                                 
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
848,764
      
16,489
      
3.90
%
  
$
810,736
      
12,612
      
3.14
%
Time deposits
    
256,212
      
5,992
      
4.69
      
239,720
      
4,306
      
3.62
  
Total interest-bearing deposits
    
1,104,976
      
22,481
      
4.08
      
1,050,456
      
16,918
      
3.25
  
Total interest-bearing liabilities
    
1,104,976
      
22,481
      
4.08
      
1,050,456
      
16,918
      
3.25
  
                                                 
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
    
426,696
                      
414,383
                  
Other noninterest-bearing liabilities
    
12,218
                      
11,659
                  
Total noninterest-bearing liabilities
    
438,914
                      
426,042
                  
Shareholders' equity
    
180,503
                      
153,506
                  
Total liabilities and shareholders' equity
  
$
1,724,393
                    
$
1,630,004
                  
                                                 
Net interest income
          
$
43,242
                    
$
40,504
          
Net interest spread
                    
3.74
%
                    
3.96
%
Net interest margin
                    
5.15
%
                    
5.09
%

(1)
Nonaccrual loans are included in total loans

   
Net Interest Margin
  
   
For the Three Months Ended June 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
  
$
173,502
    
$
2,488
      
5.75
%
  
$
174,920
    
$
2,371
      
5.44
%
Debt securities, taxable-equivalent
    
106,457
      
951
      
3.58
      
153,424
      
701
      
1.83
  
Debt securities, tax exempt
    
17,252
      
71
      
1.65
      
19,744
      
85
      
1.73
  
Loans held for sale
    
355
      
-
      
-
      
68
      
-
      
-
  
Total loans(1)
    
1,354,985
      
28,926
      
8.56
      
1,283,341
      
26,885
      
84.00
  
Total interest-earning assets
    
1,652,551
      
32,436
      
7.87
      
1,631,497
      
30,042
      
7.39
  
Noninterest-earning assets
    
38,722
                      
25,050
                  
Total assets
  
$
1,691,273
                    
$
1,656,547
                  
                                                 
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
851,751
      
8,293
      
3.91
%
  
$
817,819
      
6,860
      
3.36
%
Time deposits
    
247,452
      
2,911
      
4.72
      
265,396
      
2,684
      
4.06
  
Total interest-bearing deposits
    
1,099,203
      
11,204
      
4.09
      
1,083,215
      
9,544
      
3.53
  
Total interest-bearing liabilities
  
$
1,099,203
      
11,204
      
4.09
    
$
1,083,215
      
9,544
      
3.53
  
                                                 
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
  
$
394,010
                    
$
403,207
                  
Other noninterest-bearing liabilities
    
12,778
                      
12,180
                  
Total noninterest-bearing liabilities
    
406,788
                      
415,387
                  
Shareholders' equity
    
185,282
                      
157,945
                  
Total liabilities and shareholders' equity
  
$
1,691,273
                    
$
1,656,547
                  
                                                 
Net interest income
          
$
21,232
                    
$
20,498
          
Net interest spread
                    
3.78
%
                    
3.85
%
Net interest margin
                    
5.15
%
                    
5.04
%

(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 second quarter results, which will be broadcast live over the Internet, on Friday, July 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/0P6wZ64ME8o. For those not able to participate in the live call, an archive of the webcast will be available at https://app.webinar.net/0P6wZ64ME8o 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

 Q2 2024   Earnings Release  BSVN  July 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(2) 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 58% insider ownership   Dollars in thousands, all data as of June 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  See slide 4 for the corresponding comparison between BSVN and peer group   Bank7 Branch  Dallas / Fort Worth  Tulsa  Oklahoma City 
 
 Q2 Overview  Asset Quality & CRE  Dollars in thousands, all data as of June 30, 2024, unless indicated otherwise  Gross revenue of $2.43 million and gross expense of $1.10 million; pre-tax net income of $1.33 million and net income of $1.00 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 3 for adjusted uninsured deposit calculation  $924.50 million of gross loans reprice daily, with $101.41 million of those loans that are at their ceiling  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  Q2 EPS of $1.23, a 17.14% increase from Q2 2023; excluding net income from oil and gas(1), we achieved a core banking EPS of $1.14, an 8.57% increase from Q2 2023  We continue to benefit from a low efficiency ratio of 37.72%  Net interest margin, excluding loan fee income, increased 3bps to 4.76%(2) as compared to Q1 2024  Record Earnings & Reliable Net Interest Margin  Exceptional earnings and low dividend payout ratio builds capital rapidly  Capital ratios far exceed “well capitalized” regulatory guidelines  CET 1 Capital: 13.03%  Tier 1 Leverage: 11.12%  Debt free Balance Sheet  No HTM securities   Prudent Capital Management  Uninsured deposits represent 22.83% of total deposits, compared to 26.85% for Q1 2024; adjusted uninsured deposits represent 16.08% of total deposits (3)  The sum of cash plus unpledged securities and undrawn lines-of-credit equals $463.16 million, which significantly exceeds adjusted uninsured deposits of $238.15 million(3), a 1.94x coverage  $1.08 billion or 79.79% of loans reprice in 1 year or less, with $924.50 million(4) or 68.30% repricing daily  AOCI is only $5.75 million; the average investment portfolio duration is ~3.2 years  Consistent Balance Sheet Management & Liquidity  NPLs to Total Loans of 0.50%, within our historical norms  Diverse CRE portfolio primarily located in the DFW and Oklahoma City Metros  Office Loan Average Size, excluding construction is $0.76 million:  Owner Occupied — $0.65 million  Non-Owner Occupied — $1.00 million 
 
 Maximizing Our Employee Base (3)  PPE(1)  9.57% increase   Strength in Core Earnings  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 months ended June 30, 2023 and 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 $15.26 million, an increase of 9.57% as compared to Q2 2023  PPE was driven by:  Disciplined loan pricing  Asset sensitive balance sheet  Expense discipline  We achieve maximum productivity by:  Utilizing a branch-lite model  Hiring fewer but better FTEs  Operating an efficient delivery system with a strict adherence to processes  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 Q1 2024, the latest data available.  
 
 Return on Average Tangible Common Equity (1)  5 year average: 20.5%  Efficiency Ratio  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 June 30, 2024 and June 30, 2023  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 elite and within our historical ranges  Pro   Forma  8.60%  38.83% 
 
 Diluted Earnings Per Share  17.14% Increase   Pro Forma  $0.81  Tangible Book Value Per Share  CAGR since 2018: 16.5%   Record EPS:  $1.23 for Q2, a 17.14% increase from Q2 2023; excluding net income from oil and gas, we achieved a core banking EPS of $1.14, an 8.57% increase from Q2 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  Consistently strong earnings increased TBV despite three factors:  $0.85 per share paid for an all-cash acquisition in Q4 2021  $0.62 per share AOCI unrealized loss from investments  $3.09 per share paid in cash dividends, since IPO  1 
 
 CAGR since 2018: 15.6%   BSVN Compared to Major Exchange Traded Banks between $500M - $5B   Total Shareholder Return Since BSVN’s IPO  BSVN’s TBVPS Since FYE 2018  Peer Median CAGR: 6.5%(1)  (1)  $100 invested in BSVN since IPO would be worth $192.58 now  $100 invested in an index of BSVN’s peers since BSVN’s IPO would be worth $93.04 now  BSVN: 92.6%  Peer Median: (7.0%)  99.5% Outperformance  Source: S&P Global Market Intelligence and FactSet; Market data as of 6/30/2024  Total shareholder return includes the reinvestment of dividends  Peer group is defined as major exchange-traded banks nationwide with assets between $500M – $5B (147 banks) 
 
 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 6/30/2024  Total shareholder return includes the reinvestment of dividends  Public banks include all major exchange-traded banks nationwide (324 banks)  Total Shareholder Return Since BSVN’s IPO  BSVN’s TBVPS Since FYE 2018  (1)  $100 invested in BSVN since IPO would be worth $192.58 now  $100 invested in an index of all public banks since BSVN’s IPO would be worth $96.78 now  BSVN: 92.6%  Public Banks Median: (3.2%)  95.8% 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 March 31, 2024 and June 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 
 
 We Achieve a Steady Spread thru Various Rate Cycles 
 
 Asset Sensitivity Repricing and Liquidity  Dollars in thousands, all data as of June 30,2024, unless indicated otherwise  $924.50 million of gross loans reprice daily, with $101.41 million of those loans that are at their ceiling  Asset Sensitivity Repricing Schedule  (1)  79.73% of total earning assets reprice within one year or less, and is the key driver of our consistent net interest margin  Uninsured deposits total $338.14 million or 22.83% of total deposits; however, after deductions for insider owned, and also collateralized deposits, adjusted uninsured deposits are $238.15 million, which is 16.08% of total deposits  Cash, securities, and undrawn lines of credit totaled $463.16 million, providing a 1.94x coverage of adjusted uninsured deposits  Uninsured Deposits | Cash/Liquidity  Liquidity 
 
 Deposit Composition  Deposit Composition  CAGR since 2019: 13.0%  Dollars in millions  Includes interest bearing and non-interest bearing demand deposit, money market, and savings accounts   Decrease in non-interest bearing deposits relates to a $100.00 million deposit that was directed here by a bankruptcy court which has now been dispersed 
 
 Loan Portfolio Trends  Loan Portfolio Trends – Selected Categories  Dollars are in millions  CAGR Since 2019: 12.5%  11.3%  24.8%  20.8%  43.2% 
 
 Loan Portfolio Distribution  Dollars are in millions. Data as of June 30, 2024  Loan Portfolio  Selected Categories 
 
 Diverse CRE Portfolio with Very Low Historical Losses  Dollars are in millions. Data as of June 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 and retail loans  No office exposure to downtown metropolitan locations  Office Loan Average Size, excluding construction is $0.76 million: :  Owner Occupied — $0.65 million  Non-Owner Occupied — $1.00 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 June 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 (84%) 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 $5.63 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  Q2 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 $61.6 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 June 30, 2024, Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.12%, 13.03%, and 14.27% 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 
 
 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 $66.3 million as of June 30, 2024  Weighted Average Duration: 3.2 Years  Book Yield: 2.03% 
 
 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. 
 


v3.24.2
Document and Entity Information
Jul. 11, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Jul. 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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