On July 11, 2024, Bank7 Corp (NASDAQ: BSVN) released its 8-K filing announcing its unaudited results for the quarter ended June 30, 2024. Bank7 Corp, a full-service commercial bank, reported another record quarter of net income and earnings per share (EPS), driven by its asset-sensitive balance sheet, disciplined cost controls, and excellent credit quality.
Company Overview
Bank7 Corp is a full-service commercial bank focused on providing customers with exceptional service and meeting their banking needs through a wide variety of commercial and retail financial services. It offers deposit banking products, including commercial deposit services, commercial checking, money market, and other deposit accounts, and retail deposit services such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. It also offers commercial real estate lending, hospitality lending, energy lending, and commercial and industrial lending, and provides consumer lending services to individuals.
Performance Highlights
For the three months ended June 30, 2024, Bank7 Corp reported net income of $11.52 million, a significant increase from $9.75 million in the same period last year. The EPS for the quarter was $1.25, surpassing the analyst estimate of $1.04. The company's revenue for the quarter was $32.44 million, also exceeding the estimated revenue of $22.86 million.
Financial Achievements
Bank7 Corp's financial achievements are noteworthy, particularly in the banking industry where maintaining strong capital levels and credit quality is crucial. The company'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, as of June 30, 2024. These ratios are significantly above the minimum levels required to be designated as "well-capitalized" for regulatory purposes.
Income Statement and Key Metrics
Key details from the income statement include:
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income | $11.52 million | $11.29 million | $9.75 million |
| Pre-tax Net Income | $15.26 million | $14.88 million | $12.90 million |
| Pre-provision Pre-tax Earnings (PPE) | $15.26 million | $14.88 million | $13.92 million |
Balance Sheet and Cash Flow
Bank7 Corp's balance sheet remains robust with total assets of $1.68 billion as of June 30, 2024, compared to $1.77 billion at the end of 2023. The company's total deposits were $1.48 billion, down from $1.59 billion at the end of 2023. Shareholders' equity increased to $190.81 million from $170.33 million at the end of 2023, reflecting strong retained earnings and additional paid-in capital.
Analysis and Commentary
Bank7 Corp's performance in Q2 2024 demonstrates its ability to navigate a challenging economic environment while maintaining strong financial metrics. The company's focus on cost control and credit quality has paid off, resulting in record net income and EPS. The significant increase in net interest income, driven by higher interest rates and loan growth, has been a key factor in the company's success.
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 Bank7 Corp.
Overall, Bank7 Corp's Q2 2024 earnings report highlights its strong financial position and ability to deliver value to shareholders. The company's continued focus on maintaining high capital levels and credit quality positions it well for future growth and stability in the banking industry.
Explore the complete 8-K earnings release (here) from Bank7 Corp for further details.
