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)
 
January 30, 2020

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 January 30, 2020, Bank7 Corp. (the “Company”), the holding company for Bank7, issued a press release announcing its results of operation and financial condition for the fiscal quarter and year ended December 31, 2019.  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 January 30, 2020 at 4:30 ET to discuss its fourth quarter and full year 2019 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 January 30, 2020
   
Fourth Quarter and Full Year 2019 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: January 30, 2020
By:
/s/   Kelly J. Harris
   
Kelly J. Harris
   
Senior Vice President and Chief Financial Officer


Exhibit 99.1


FOR IMMEDIATE RELEASE: Bank7 Corp. Announces 4Q and Full Year 2019 Earnings

Oklahoma City, OK, January 30, 2020 – Bank7 Corp. (NASDAQ: BSVN) ("the Company"), the parent company of Oklahoma City-based Bank7 (the "Bank"), today reported unaudited results for the fiscal quarter and year ended December 31, 2019.  "The fourth quarter was another good quarter for Bank7 and we are particularly pleased with our robust loan growth, the continuation of excellent credit quality, and our ability to maintain a strong net interest margin, especially in a declining interest rate environment,” said Thomas L. Travis, President and CEO of the Company.  “Additionally, for the full year, we are very pleased that our pro forma pre-tax income increased by $1 million, or 4.05%.  This was achieved in spite of incurring costs associated with launching into two new markets and modernizing our Oklahoma City branch and headquarters.”

On September 5, 2019, our largest shareholders, the Haines Family Trusts, contributed approximately 6.5% of their shares to the Company.  Subsequently, the Company immediately issued those shares to certain executive officers, which was charged as compensation expense through the income statement of the Company. This previously announced transaction was recorded as a one-time, non-cash expense; however, because the shares were simultaneously contributed to the Company by the Haines Family Trusts, the transaction had a virtual net-zero impact to shareholders’ equity.

Excluding the one-time, extraordinary expense related to the stock transfer outlined above, net income would have been $20.0 million and for the year ending December 31, 2019.  Illustrated below is a reconciliation of pro forma net income through the year ended December 31, 2019.

   
For the Year Ended
December 31,
              
   
2019
    
2018
    
$ Change
    
% Change
  
(Dollars in thousands)
                        
Pro Forma Net Income
                        
Total Interest Income
  
$
51,709
    
$
46,800
    
$
4,909
      
10.49
%
Total Interest Expense
    
9,516
      
7,169
      
2,347
      
32.73
%
Net Interest Margin
    
42,193
      
39,631
      
2,562
      
6.47
%
Provision for Loan Losses
   $ -
     $
 200
    $
 (200
)
        
Total Noninterest Income
  
$
1,284
    
$
1,331
    
$
(47
)
    
(3.51
%)
                                 
Total Noninterest Expense
  
$
28,432
    
$
14,966
    
$
13,466
      
89.98
%
Stock Transfer Compensation Expense (1)
    
(11,796
)
    
-
      
(11,796
)
        
Pro Forma Noninterest Expense
    
16,636
      
14,966
      
1,670
      
11.16
%
                                 
Pro Forma Pre-Tax Income
  
$
26,842
    
$
25,796
    
$
1,046
      
4.05
%
                                 
Pro Forma Income Tax Expense
  
$
6,836
    
$
5,719
    
$
1,117
      
19.53
%
                                 
Pro Forma Net After-Tax Income
  
$
20,006
    
$
20,077
    
$
(71
)
    
(0.36
%)

(1)
Compensation expense includes $168,000 in payroll taxes.

Additional Highlights

For the three months ended December 31, 2019 compared to three months ended December 31, 2018:


 -
Interest income on loans, including loan fee income, totaled $12.3 million, a 4.33% increase

-
Average loans of $692.3 million, a 15.3% increase

For the year ended December 31, 2019 compared to the year ended December 31, 2018:


 -
Yield on average earning assets, including loan fee income, of 6.55%, an increase of 1.10%

-
Interest income on loans, including loan fee income, totaled $48.2 million, a 8.86% increase

-
Average loans of $636.3 million, a 8.98% increase

-
Total loans of  699.5 million, a 18.14 increase

-
Core deposits of $678.1 million, a 10.24% increase

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.  At December 31, 2019 the Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.65%, 14.28%, and 15.42% respectively for the Bank.  At December 31, 2019 the Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.49%, 14.06%, and 15.20% respectively for the Company on a consolidated basis.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.
 
Pre-tax, pre-provision net income is defined as income before taxes and provision for loan losses.  We believe the most directly comparable GAAP financial measure is income before taxes.  Disclosure of this measure enables you to compare our operations to those of other banking companies before consideration of taxes and provision expense, which some investors may consider to be a more appropriate comparison given our S Corporation status prior to September 2018.  We calculate our tax-adjusted net income, return on average assets, and return on average equity, and per share amounts by using a combined C Corporation effective tax rate for federal and state income taxes of 45.5% and 22.2% in 2019 and 2018, respectively.  This calculation illustrates only the change from our status as a S Corporation into a C Corporation and does not give effect to any other transaction.  However, we acknowledge that our non-GAAP financial measures have a number of limitations.  As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other banking companies use.  Other banking companies may use names similar to those we use for non-GAAP financial measures we disclose, but may calculate them differently.  You should understand how we and other companies each calculate their non-GAAP financial measures when making comparisons.  The following reconciliation table provides a more detailed analysis of these non-GAAP financial measures:
 
   
Three months ended
December 31,
    
For the Year ended
December 31,
  
(Dollars in thousands, except per share data)
  
2019
    
2018
    
2019
    
2018
  
Loan interest income (excluding loan fees)
                        
Total loan interest income, including loan fee income
  
$
12,299
    
$
11,789
    
$
48,200
    
$
44,279
  
Loan fee income
    
(944
)
    
(1,229
)
    
(4,443
)
    
(5,121
)
Loan interest income excluding loan fee income
  
$
11,355
    
$
10,560
    
$
43,757
    
$
39,158
  
                                 
Average total loans
  
$
692,286
    
$
600,400
    
$
636,274
    
$
583,821
  
Yield on loans (including loan fee income)
    
7.05
%
    
7.79
%
    
7.58
%
    
7.58
%
Yield on loans (excluding loan fee income)
    
6.51
%
    
6.98
%
    
6.88
%
    
6.71
%
                                 
Net interest margin (excluding loan fees)
                                
Net interest income
  
$
10,658
    
$
 10,530    
$
43,193
    
$
39,631
  
Loan fee income
    
(944
)
    
(1,229
)
    
(4,443
)
    
(5,121
)
Net interest income excluding loan fees
  
$
9,714
    
$
 9,301    
$
37,750
    
$
34,510
  
                                 
Average earning assets
  
$
837,252
    
$
760,869
    
$
789,009
    
$
721,935
  
Net interest margin (including loan fee income)
    
5.05

   
5.49
%
    
5.35
%
    
5.49
%
Net interest margin (excluding loan fee income)
    
4.60

   
4.85
%
    
4.78
%
     4.78
%
                                 
Pre-tax, pre-provision net earnings
                                
Net income before income taxes
  
$
6,358
    
$
6,753
    
$
 15,045    
$
25,797
  
Plus: Provision (reversal of) for loan losses
    
-
       (100 )    
-
      
(200
 )
Pre-tax, pre-provision net earnings
  
$
6,358
    
$
6,853
    
$
 15,045    
$
25,997
  
                                 
Adjusted provision for income tax
                                
Net income before income taxes
  
$
6,358
    
$
6,753
    
$
15,045
    
$
25,797
  
Total effective adjusted tax rate
    
29.6
%
    
17.7
%
    
45.5
%
    
22.2
%
Adjusted provision for income taxes
  
$
1,879
    
$
1,192
    
$
6,844
    
$
5,720
  
                                 
Tax-adjusted net income
                                
Net income before income taxes
  
$
6,358
    
$
6,753
    
$
 15,045    
$
25,797
  
Adjusted provision for income taxes
    
1,879
      
1,192
      
6,844
      
5,720
  
Tax-adjusted net income
  
$
4,479
    
$
5,561
    
$
8,201
    
$
20,077
  
                                 
Tax-adjusted ratios and per share data
                                
Tax-adjusted net income (numerator)
  
$
4,479
    
$
5,561
    
$
 8,201    
$
20,077
  
                                 
Average assets (denominator)
  
$
845,510
    
$
769,170
    
$
798,528
    
$
730,564
  
Tax-adjusted return on average assets
    
2.10
%
    
2.87
%
    
1.03
%
    
2.75
%
                                 
Average shareholders' equity (denominator)
  
$
102,691
    
$
85,790
    
$
97,430
    
$
78,148
  
Tax-adjusted return on average shareholders' equity
    
17.31
%
    
25.72
%
    
8.42
%
    
25.69
%
                                 
Average tangible common equity (denominator)
  
$
100,872
    
$
83,763
    
$
95,537
    
$
 76,046  
Tax-adjusted return on average tangible common equity
    
17.62
%
     26.34
%
    
8.58
%
     26.40
%
                                 
Weighted average common shares outstanding basic (denominator)
    
10,057,506
      
10,187,500
       10,145,032      
8,105,856
  
Tax-adjusted net income per common share--basic
  
$
 0.45    
$
0.55
    
$
0.81
    
$
 2.48  
                                 
Weighted average common shares outstanding diluted (denominator)
    
10,059,208
      
10,322,193
       10,147,311       8,237,638  
Tax-adjusted net income per common share--diluted
  
$
0.45
    
$
0.54
    
$
 0.81    
$
 2.44  
Pro forma weighted average common shares outstanding basic (denominator)
    
10,206,931
              
10,192,930
          
Pro Forma tax-adjusted net income per common share--basic
  
$
0.46
            
$
1.96
          
                                 
Pro forma weighted average common shares outstanding diluted (denominator)
    
10,205,229
               10,192,930          
Pro forma tax-adjusted net income per common share--diluted
  
$
0.46
            
$
1.96
          
                                 
Tangible assets
                                
Total assets
  
$
866,392
    
$
 770,511                  
Less: Goodwill and intangibles
    
(1,789
)
    
(1,995
)
                
Tangible assets
  
$
864,603
    
$
768,516
                  
                                 
Tangible shareholders' equity
                                
Total shareholders' equity
  
$
100,126
    
$
88,467
                  
Less: Goodwill and intangibles
    
(1,789
)
    
(1,995
)
                
Tangible shareholders' equity
  
$
98,337
    
$
 86,472                  
                                 
Tangible shareholders' equity
                                
Tangible shareholders' equity (numerator)
  
$
98,337
    
$
 86,472                  
Tangible assets (denominator)
  
$
864,603
    
$
 768,516                  
Tangible common equity to tangible assets
    
11.37
%
    
11.25
%
                
                                 
End of period common shares outstanding
    
10,057,506
      
10,187,500
                  
Book value per share
  
$
9.96
    
$
8.68
                  
Tangible book value per share
  
$
9.78
    
$
8.49
                  
Total shareholders' equity to total assets
    
11.56
%
    
11.48
%
                

   
Net Interest Margin Excluding Loan Fee Income
  
   
For the Three Months Ended December 3,1
  
   
2019
    
2018
  
   
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(1)
  
$
143,604
    
$
674
       1.86
%
  
$
159,215
    
$
795
      
1.98
%
Investment securities(2)
    
1,073
      
23
      
8.50
      
1,055
      
—
      
0.00
  
Loans held for sale
    
289
      
—
      
0.00
      
199
      
—
      
0.00
  
Total loans(3)
    
692,286
      
11,355
      
6.51
      
600,400
      
10,560
      
6.98
  
Total interest-earning assets
    
837,252
      
12,052
       5.71      
760,869
      
11,355
      
5.92
  
Noninterest-earning assets
    
8,258
                      
8,301
                  
Total assets
  
$
845,510
                    
$
769,170
                  
                                                 
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
314,106
      
1,133
      
1.43
%
  
$
259,614
      
1,155
      
1.77
%
Time deposits
    
213,716
      
1,205
      
2.24
      
196,696
      
899
      
1.81
  
Total interest-bearing deposits
    
527,822
      
2,338
      
1.76
      
456,310
      
2,054
      
1.79
  
Other borrowings
    
—
      
—
      
0.00
      
—
      
—
      
—
  
Total interest-bearing liabilities
    
527,822
      
2,338
      
1.76
      
456,310
      
2,054
      
1.79
  
                                                 
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
    
210,986
                      
221,716
                  
Other noninterest-bearing liabilities
    
4,011
                      
5,354
                  
Total noninterest-bearing liabilities
    
214,997
                      
227,070
                  
Shareholders’ equity
    
102,691
                      
85,790
                  
Total liabilities and shareholders’ equity
  
$
845,510
                    
$
769,170
                  
                                                 
Net interest income including loan fee income
          
$
 9,714                    
$
9,301
          
Net interest spread including loan fee income(4)
                    
3.95
%
                    
4.13
%
Net interest margin including loan fee income
                    
4.60
%
                    
4.85
%

   
Net Interest Margin With Loan Fee Income
  
   
For the Three Months Ended December 31,
  
   
2019
    
2018
  
   
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(1)
  
$
143,604
    
$
 674      
1.80
%
  
$
159,215
    
$
795
      
1.98
%
Investment securities(2)
    
1,073
      
23
      
8.50
      
1,055
      
—
      
0.00
  
Loans held for sale
    
289
      
—
      
0.00
      
199
      
—
      
0.00
  
Total loans(3)
    
692,286
      
12,299
      
7.05
      
600,400
      
11,789
      
7.79
  
Total interest-earning assets
    
837,252
       12,996       6.16      
760,869
      
12,584
      
6.56
  
Noninterest-earning assets
    
8,258
                      
8,301
                  
Total assets
  
$
845,510
                    
$
769,170
                  
                                                 
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
314,106
      
1,133
      
1.43
%
  
$
259,614
      
1,155
      
1.77
%
Time deposits
    
213,716
      
1,205
      
2.24
      
196,696
      
899
      
1.81
  
Total interest-bearing deposits
    
527,822
      
2,338
      
1.76
      
456,310
      
2,054
      
1.79
  
Other borrowings
    
—
      
—
      
0.00
      
—
      
—
      
0.00
  
Total interest-bearing liabilities
    
527,822
      
2,338
      
1.76
      
456,310
      
2,054
      
1.79
  
                                                 
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
    
210,986
                      
221,716
                  
Other noninterest-bearing liabilities
    
4,011
                      
5,354
                  
Total noninterest-bearing liabilities
    
214,997
                      
227,070
                  
Shareholders’ equity
    
102,691
                      
85,790
                  
Total liabilities and shareholders’ equity
  
$
845,510
                    
$
769,170
                  
                                                 
Net interest income excluding loan fee income
          
$
 10,658                    
$
10,530
          
Net interest spread excluding loan fee income(4)
                     4.40
%
                    
4.78
%
Net interest margin excluding loan fee income
                    
5.05
%
                    
5.49
%

(1)
Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.

(2)
Includes income and average balances for FHLB and FRB stock.

(3)
Non-accrual loans are included in loans.

(4)
Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.

   
Net Interest Margin Excluding Loan Fee Income
  
   
For the Year Ended December 31,
  
   
2019
    
2018
  
   
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(1)
  
$
151,434
    
$
3,459
      
2.28
%
  
$
136,880
    
$
2,521
      
1.84
%
Investment securities(2)
    
1,065
      
50
      
4.69
      
1,052
      
—
      
0.00
  
Loans held for sale
    
236
      
—
      
0.00
      
182
      
—
      
0.00
  
Total loans(3)
    
636,274
       43,757      
6.88
      
583,821
      
39,158
      
6.71
  
Total interest-earning assets
    
789,009
       47,266      
5.99
      
721,935
      
41,679
      
5.77
  
Noninterest-earning assets
    
9,519
                      
8,629
                  
Total assets
  
$
798,528
                    
$
730,564
                  
                                                 
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
295,576
       5,057      
1.71
%
  
$
240,881
      
3,584
      
1.49
%
Time deposits
    
208,375
      
4,459
      
2.14
      
220,023
      
3,410
      
1.55
  
Total interest-bearing deposits
    
503,951
       9,516      
1.89
      
460,904
      
6,994
      
1.52
  
Other borrowings
    
—
      
—
      
0.00
      
3,652
      
175
      
4.79
  
Total interest-bearing liabilities
    
503,951
       9,516      
1.89
      
464,556
      
7,169
      
1.54
  
                                                 
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
    
192,562
                      
183,750
                  
Other noninterest-bearing liabilities
    
4,585
                      
4,110
                  
Total noninterest-bearing liabilities
    
197,147
                      
187,860
                  
Shareholders’ equity
    
97,430
                      
78,148
                  
Total liabilities and shareholders’ equity
  
$
798,528
                    
$
730,564
                  
                                                 
Net interest income excluding loan fee income
          
$
 37,750                    
$
34,510
          
Net interest spread excluding loan fee income(4)
                    
4.10
%
                    
4.23
%
Net interest margin excluding loan fee income
                    
4.78
%
                    
4.78
%

(1)
Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.

(2)
Includes income and average balances for FHLB and FRB stock.

(3)
Non-accrual loans are included in loans.

(4)
Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.

   
Net Interest Margin With Loan Fee Income
  
   
For the Year Ended December 31,
  
   
2019
    
2018
  
   
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(1)
  
$
151,434
    
$
3,459
      
2.28
%
  
$
136,880
    
$
2,521
      
1.84
%
Investment securities(2)
    
1,065
      
50
      
4.69
      
1,052
      
—
      
0.00
  
Loans held for sale
     236      
—
      
0.00
      
182
      
—
      
0.00
  
Total loans(3)
    
636,274
       48,200      
7.58
      
583,821
      
44,279
      
7.58
  
Total interest-earning assets
    
789,009
       51,709      
6.55
      
721,935
      
46,800
      
6.48
  
Noninterest-earning assets
    
9,519
                      
8,629
                  
Total assets
  
$
798,528
                    
$
730,564
                  
                                                 
Funding sources:
                                                
Interest-bearing liabilities:
                                                
Deposits:
                                                
Transaction accounts
  
$
295,576
       5,057      
1.71
%
  
$
240,881
      
3,584
      
1.49
%
Time deposits
    
208,375
      
4,459
      
2.14
      
220,023
      
3,410
      
1.55
  
Total interest-bearing deposits
    
503,951
       9,516      
1.89
      
460,904
      
6,994
      
1.52
  
Other borrowings
    
—
      
—
      
0.00
      
3,652
      
175
      
4.79
  
Total interest-bearing liabilities
    
503,951
       9,516      
1.89
      
464,556
      
7,169
      
1.54
  
                                                 
Noninterest-bearing liabilities:
                                                
Noninterest-bearing deposits
    
192,562
                      
183,750
                  
Other noninterest-bearing liabilities
    
4,585
                      
4,110
                  
Total noninterest-bearing liabilities
    
197,147
                      
187,860
                  
Shareholders’ equity
    
97,430
                      
78,148
                  
Total liabilities and shareholders’ equity
  
$
798,528
                    
$
730,564
                  
                                                 
Net interest income including loan fee income
          
$
 42,193                    
$
39,631
          
Net interest spread including loan fee income(4)
                    
4.67
%
                    
4.94
%
Net interest margin including loan fee income
                    
5.35
%
                    
5.49
%

(1)
Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.

(2)
Includes income and average balances for FHLB and FRB stock.

(3)
Non-accrual loans are included in loans.

(4)
Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.

Bank7 Corp.
Consolidated Balance Sheets

Dollars in thousands, exceper per share data
  
Unaudited as of
        
Assets
  
2019
    
December 31,
  
   
December 31
    
September 30
    
2018
  
                   
Cash and due from banks
  
$
117,128
    
$
110,594
    
$
128,090
  
Interest-bearing time deposits in other banks
    
30,147
      
31,890
      
31,759
  
Loans, net
     699,458      
666,755
      
592,078
  
Loans held for sale
     1,031      
-
      
512
  
Premises and equipment, net
    
9,624
      
8,395
      
7,753
  
Nonmarketable equity securities
    
1,100
      
1,072
      
1,055
  
Foreclosed assets held for sale
    
-
      
77
      
110
  
Goodwill and intangibles
    
1,789
      
1,840
      
1,995
  
Interest receivable and other assets
    
6,115
      
6,198
      
7,159
  
                         
Total assets
  
$
866,392
    
$
826,821
    
$
770,511
  
                         
Liabilities and Shareholders’ Equity
                        
                         
Deposits
                        
Noninterest-bearing
  
$
219,221
    
$
202,989
    
$
201,159
  
Interest-bearing
    
538,262
      
519,145
      
474,743
  
                         
Total deposits
    
757,483
      
722,134
      
675,902
  
                         
Income taxes payable
    
-
      
-
      
1,913
  
Interest payable and other liabilities
    
8,783
      
4,072
      
4,229
  
                         
Total liabilities
    
766,266
      
726,206
      
682,044
  
                         
Common stock
    
101
      
101
      
102
  
Additional paid-in capital
    
92,391
      
92,353
      
80,275
  
Retained earnings
    
7,610
      
8,161
      
8,090
  
Accumulated Other Comprehensive Income
    
24
      
-
      
-
  
                         
Total shareholders’ equity
    
100,126
      
100,615
      
88,467
  
 
                        
Total liabilities and shareholders’ equity
  
$
866,392
    
$
826,821
    
$
770,511
  

Bank7 Corp.
Consolidated Statements of Income

 
  
Unaudited as of
        
 
  
Quarter Ended
    
Year Ended
  
 
  
2019
    
2018
    
2019
    
2018
  
Dollars in thousands, exceper per share data
  
December 31
    
September 30
    
December 31
    
December 31
    
December 31
  
Interest Income
                              
Loans, including fees
  
$
12,299
    
$
12,179
    
$
11,789
    
$
 48,200    
$
44,279
  
Interest-bearing time deposits in other banks
    
295
      
500
      
150
      
1,709
      
588
  
Interest-bearing deposits in other banks
    
402
      
392
      
645
      
1,800
      
1,933
  
 
                                        
Total interest income
    
12,996
      
13,071
      
12,584
       51,709      
46,800
  
 
                                        
Interest Expense
                                        
Deposits
    
2,338
      
2,471
      
2,054
      
9,516
      
6,994
  
Other borrowings
    
-
      
-
      
-
      
-
      
175
  
 
                                        
Total interest expense
    
2,338
      
2,471
      
2,054
      
9,516
      
7,169
  
 
                                        
Net Interest Income
    
10,658
      
10,600
      
10,530
       42,193      
39,631
  
 
                                        
Provision for Loan Losses
    
-
      
-
      
100
      
-
      
200
  
 
                                        
Net Interest Income After Provision for Loan Losses
    
10,658
      
10,600
      
10,430
       42,193      
39,431
  
 
                                        
Noninterest Income
                                        
Secondary market income
    
18
      
69
      
39
      
164
      
212
  
Service charges on deposit accounts
    
113
      
110
      
86
      
392
      
347
  
Other
    
126
      
330
      
137
      
728
      
772
  
 
                                        
Total noninterest income
    
257
      
509
      
262
      
1,284
      
1,331
  
 
                                        
Noninterest Expense
                                        
Salaries and employee benefits
    
2,473
      
14,256
      
2,035
      
21,265
      
8,113
  
Furniture and equipment
    
223
      
229
      
193
      
829
      
684
  
Occupancy
    
520
      
436
      
207
      
1,677
      
1,310
  
Data and item processing
    
264
      
276
      
250
      
1,078
      
966
  
Accounting, marketing and legal fees
    
250
      
218
      
87
      
757
      
305
  
Regulatory assessments
    
32
      
31
      
146
      
126
      
542
  
Advertising and public relations
    
239
      
71
      
140
      
588
      
553
  
Travel, lodging and entertainment
    
81
      
153
      
81
      
368
      
699
  
Other
    
475
      
402
      
800
      
1,744
      
1,793
  
 
                                        
Total noninterest expense
    
4,557
      
16,072
      
3,939
      
28,432
      
14,965
  
 
                                        
Income Before Taxes
    
6,358
      
(4,963
)
    
6,753
      
15,045
      
25,797
  
Income tax expense
    
1,879
      
1,556
      
1,192
      
6,844
      
797
  
Net Income
  
$
4,479
    
$
(6,519
)
  
$
5,561
    
$
8,201
    
$
25,000
  
 
                                        
Earnings per common share - basic
  
$
0.45
    
$
(0.64
)
  
$
0.55
    
$
0.81
    
$
3.08
  
Diluted earnings per common share
    
0.45
      
(0.64
)
    
0.54
      
0.81
      
3.03
  
Weighted average common shares outstanding - basic
    
10,057,506
      
10,149,007
      
10,187,500
      
10,145,032
      
8,105,856
  
Weighted average common shares outstanding - diluted
    
10,059,208
      
10,161,778
      
10,322,193
      
10,147,311
      
8,237,638
  

About Bank7 Corp.

We are Bank7 Corp., a bank holding company headquartered in Oklahoma City, Oklahoma. Through our wholly-owned subsidiary, Bank7, we operate nine locations in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area and Kansas. We are focused on serving business owners and entrepreneurs by delivering fast, consistent and well-designed loan and deposit products to meet their financing needs. We intend to grow organically by selectively opening additional branches in our target markets as well as pursue strategic acquisitions.

Conference call

Bank7 Corp. has scheduled a conference call to discuss its fourth quarter and full year 2019 results, which will be broadcast live over the Internet, on Thursday, January 30 at 4:30 p.m. Eastern Time. To participate in the call, dial 1-888-348-6421, or access it live over the Internet at https://www.webcaster4.com/Webcast/Page/2179/32829.   For those not able to participate in the live call, an archive of the webcast will be available at https://www.webcaster4.com/Webcast/Page/2179/32829 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 direct and indirect effect of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators.  Bank7 Corp. has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that Bank7 Corp. believes may affect its financial condition, results of operations, business strategy and financial needs. Bank7 Corp.’s actual results could differ materially from those anticipated in such forward-looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. If one or more events related to these or other risks or uncertainties materialize, or if Bank7 Corp.’s underlying assumptions prove to be incorrect, actual results may differ materially from what Bank7 Corp. anticipates. You are cautioned not to place undue reliance on forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made and Bank7 Corp. undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as may be required by law. All forward-looking statements herein are qualified by these cautionary statements.

About Non-GAAP Financial Measures

This communication includes certain non-GAAP financial measures, including tax-adjusted net income, tax-adjusted earnings per share, tax-adjusted return on average assets and tax-adjusted return on average shareholders’ equity. These non-GAAP financial measures and any other non-GAAP financial measures that we discuss in this presentation should not be considered in isolation, and should be considered as additions to, and not substitutes for or superior to, measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Bank7 Corp.’s non-GAAP financial measures as tools for comparison. See the table above in this communication for a reconciliation of the non-GAAP financial measures used in (or conveyed orally during) this communication to their most directly comparable GAAP financial measures.

Contact:
 
Thomas Travis
President & CEO
(405) 810-8600
 

Exhibit 99.2

 
 Corporate Overview NASDAQ: BSVN    December 31,2018  December 31,2019  $ Change  % Change  Assets  $771 million  $866 million  $96 million  12.4%  Loans  $600 million  $707 million  $107 million  17.9%  Deposits  $676 million  $758 million  $82 million  12.1%  One of the Top Performing Community Banks in the United States(1)Track Record of Strong Profitability and Expense ControlIntense Focus on Underwriting and Asset QualityScalable and Consistently Growing Platform  (1) Best-performing community banks of 2018 under $3B in assets, S&P Global Market Intelligence - https://www.spglobal.com/marketintelligence/en/news-insights/trending/5zt6a8x6w9-uBR3RAAq5xg2  1 
 
 Fourth Quarter & Full Year Accomplishments  Strong Core Earnings  Loan growth generated a higher net interest income, and combined with our stable net interest margin to boost pro forma pre-tax income(2) by $1.0 million YOY, or 4.05%, despite facing a falling interest rate environment and adding two new locations during the year.The Company earned a record $37.8 million in net interest income excluding loan fees in 2019 compared to $34.3 million for 2018(1).Management maintained a stable net interest margin within historical ranges.  All-time Highs & Robust Growth  The Company ended the year with $866.4 million in total assets, $707.3 million in total loans, and $757.5 million in total deposits.Changes from 2018 to 2019: - Total assets increased $95.9 million, or 12.4% - Total loans increased $107.4 million, or 17.9% - Total deposit growth of $81.6 million, or 12.1% - Tangible shareholders’ equity increased $11.8 million, or 13.7%  2  Footprint Expansion  During 4Q, we converted our existing Tulsa LPO to a full-service branch, which was opened in January 2020.Modernized our Oklahoma City corporate headquarters and renovated our Oklahoma City branch into a state-of-the-art banking center.  Capital Management  The Company established a quarterly dividend, which paid 10 cents per share (40 cents per share or 2.1% yield annualized).In addition to the regular quarterly dividend, a special dividend of 40 cents per share (2.1% yield) was declared and paid.  Net interest income excluding fees is a non-GAAP financial measure. See non-GAAP reconciliation table for detailed calculation of this measure. Pro Forma pre-tax income 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 Pro Forma Net Income reconciliation table for detailed calculation of this measure. 
 
 Bank7 Corp. Key Statistics  For the Year EndedDecember 31, 2019  After Tax Net Income & EPS (2)(3)  Dollars are in millions, except earnings per share. Financial data is as of or for the twelve months ended December 31 of each respective year.Tangible shareholders’ equity and tangible shareholders’ equity to tangible assets are non-GAAP financial measures. See non-GAAP reconciliation table for reconciliation to their most comparable GAAP measures.Profitability metrics are tax-adjusted as if the Company were a C Corporation at the estimated tax rates for the respective periods. EPS calculation is based on basic and diluted shares and pro forma net income. Combined federal and state effective tax rates for 2018 and 2019 were 22.2% and 45.5%, respectively. Pro Forma YTD net income 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 Pro Forma Net Income reconciliation table for detailed calculation of this measure.Net interest margin (excluding loan fee income) is a non-GAAP financial measure. See non-GAAP reconciliation table for reconciliation to its most comparable GAAP measure.At December 31, 2019, Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.49%, 14.06%, and 15.20% respectively for the Company.  Total Assets  3  Pro Forma 
 
 Pro Forma Net Income Reconciliation   4  On September 5, 2019, our largest shareholders, the 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.  (1) Due to the Company’s status as a subchapter S corporation for a portion of 2018, this Pro forma income tax expense was adjusted as if the Company were a C Corporation at the estimated tax rates for the period presented. Combined federal and state effective tax rate for 2018 was 22.2%.  
 
 Strong Historical Performance  Return on Average Assets (1)(2)  Return on Average Tangible Common Equity (1) (2)  Dollars are in millionsFinancial data is as of or for the twelve months ended December 31 of each respective year.Profitability metrics are tax-adjusted as if the Company were a C Corporation at the estimated tax rates for the respective periods. Pro Forma YTD ROAA, ROATCE, efficiency ratio, and noninterest expense to average assets ratio are non-GAAP financial measures. See non-GAAP reconciliation table for reconciliation to their most comparable GAAP measures.  Leveraging Our Employee Base(2)  Efficiency Ratio(2)  We continue to produce excellent returns on average assets (ROAA) and also on average tangible common equity (ROATCE). Excluding the one-time non-cash executive stock transaction, pro forma ROAA and ROATCE for the year were 2.51% and 20.7%, respectively.We have maintained our excellent efficiency ratio, as highlighted by our low noninterest expense to average assets ratio. Excluding the one-time non-cash executive stock transaction, our pro forma efficiency ratio for the year was 38.3%.  5  5-year average: 1.96%  5-year average: 22.3%    3.56%  Pro Forma  Pro Forma  Pro Forma  Pro Forma  Actual 
 
 Net Income    December 31, 2018    December 31, 2019  Balance Sheet and Earnings Growth  Dollars are in millions, except earnings per share.Financial data is as of or for the years ended December 31, 2019 and 2018.Net income is tax-adjusted as if the Company were a C Corporation at the estimated tax rates for the respective periods. Tangible book value per share is a non-GAAP financial measure. See Appendix for reconciliation to its most comparable GAAP measure.  Balance Sheet and Earnings Growth  Tangible Book Value Per Share (2)  (1)  For the year, tangible book value per share grew by $1.29, or 15.2%. YOY balance sheet growth remains strong, highlighted by 17.9% of loan growth, deposit growth of 12.1%, 12.4% total asset growth and 13.2% growth in total shareholders’ equity.Excluding the one-time, non-cash executive stock transaction, we grew pre-tax YOY earnings by 4.05% in a falling interest rate environment, despite expenses related to our newly opened Dallas and Tulsa locations, and expenses related to being a public company.  6  Pro Forma 
 
 Net Interest Margin  Financial data is as of or for the twelve months ended December 31 of each respective year, and as of the three months ended December 31, 2019.Net interest margin (excluding loan fee income) is a non-GAAP financial measure. See Appendix for reconciliation to their most comparable GAAP measures.  Net Interest Margin  Net interest margin excluding loan fee income continues to remain well within our historical range.  7 
 
 Allowance for Loan Losses to Total Loans  Nonperforming Assets to Loans and OREO  Asset Quality  Net Charge-Offs to Average Loans  Financial data is as of or for the twelve months ended December 31 of each respective year.   Asset quality remains strong, our quality underwriting and disciplined lending practices continue to produce low levels of nonperforming assets.We continue to maintain a strong loan loss reserve.Net recoveries of $14,000 in 2019.  8 
 
 Diversified Loan Portfolio  Dollars are in millions. Data as of December 31, 2019.  Gross Loan Portfolio Composition by Purpose Type  9 
 
 Deposit Composition  Historical Deposit Growth  Compound Annual Growth Rate = 10.5%  Deposit Composition as of December 31, 2019  84.7% of our loan customers also had a deposit relationship with us as of December 31, 2019.Core Deposits(1)Total organic core deposit growth YOY was $62.9M, or 10.2%.  Core deposits totaled $678.4 million as of December 31, 2019 compared to $615.4 million as of December 31, 2018.  Dollars are in millions.Financial data is as of or for the twelve months ended December 31 of each respective year.(1) We define core deposits as deposits obtained directly from the depositor and exclude deposits obtained from listing services and brokered deposits that are obtained through an intermediary.  28.4%  26.3%  Commentary  10 
 
 Appendix  11 
 
 Bank7 Corp. Financials  Net income and earnings per share are tax-adjusted as if the Company were a C Corporation at the estimated tax rates for the respective periods. EPS calculation is based on diluted shares. Combined federal and state effective tax rates for 2018 and 2019 were 22.2% and 45.5%, respectively. Represents a non-GAAP financial measure. See non-GAAP reconciliations table for reconciliation to its more comparable GAAP measure. 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 4 of this presentation.  12 
 
 Bank7 Corp. Financials  Return on average assets and shareholders’ equity are tax-adjusted as if the Company were a C Corporation at the estimated tax rates for the respective periods.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 its more comparable GAAP measure. Ratios are based on Bank level financial information rather than consolidated information. At December 31, 2019 Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.49%, 14.06%, and 15.20% 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 4 of this presentation.  13 
 
 Non-GAAP Reconciliations  14 
 
 Legal Information and Disclaimer  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 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 on Slide 15 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.  15