Bank7 Corp. Announces 3Q 2019 Earnings

FREE Breaking News Alerts from StreetInsider.com!

StreetInsider.com Top Tickers, 8/16/2026

1. AMAT
2. GLOB
3. SPY
4. RDDT
5. SNDK

6. HTFL
7. ADYEN:NA
8. DVLT
9. ADYYF
10. WDAY

Get Alerts BSVN Hot Sheet

Price: $52.29 -0.1%

Overall Analyst Rating:
SELL (= Flat)

Dividend Yield: 2.4%

Join SI Premium – FREE

OKLAHOMA CITY, Oct. 30, 2019 /PRNewswire/ -- Bank7 Corp. (NASDAQ: BSVN) ("the Company"), the parent company of Oklahoma City-based Bank7 (the "Bank"), today reported unaudited results for the fiscal quarter ended September 30, 2019. "This was another good quarter for Bank7 as we continued with our consistent loan growth, while maintaining excellent credit quality, and a strong net interest margin," said Thomas L. Travis, President and CEO of the Company. "Although our third quarter earnings were impacted by a one-time non-cash executive stock transaction, we remain very pleased with our momentum and achievements. It is because of this continued success that during the third quarter we declared a cash dividend of $0.10 per share which was paid October 16, 2019, and authorized a stock repurchase program to purchase up to 500,000 shares of common stock," continued Travis.

Bank7 Logo (PRNewsfoto/Bank7 Corp.)

We ended the quarter with a net loss of $6.5 million and net income of $3.7 million, respectively, for the three and nine month periods ending September 30, 2019. 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 a one-time, non-cash expense; however, because the shares were simultaneously contributed into 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 $5.1 million and $15.4 million, respectively, for the three and nine month periods ending September 30, 2019. Illustrated below is a reconciliation of pro forma net income through the nine months ended September 30, 2019.

	For the Nine Months Ended September 30,
	2019		2018		$ Change		% Change
(Dollars in thousands)
Pro Forma Net Income
Total Interest Income	$	38,714	$	34,216	$	4,498		13.14	%
Total Interest Expense		7,178		5,115		2,063		40.33
Net Interest Margin		31,536		29,101		2,435		8.37

Total Noninterest Income	$	1,027	$	1,069	$	(42)		(3.89)	%

Total Noninterest Expense	$	23.875	$	11,127	$	12,748		114.56	%
Stock Transfer Compensation Expense		(11,796)		-		(11,796)		100.00
Pro Forma Noninterest Expense		12,078		11,127		951		9.08

Pro Forma Pre-Tax Income	$	20,485	$	19,043	$	1,442		7.57	%

Pro Forma Income Tax Expense	$	5,107	$	4,764	$	343		7.21	%

Pro Forma Net After-Tax Income	$	15,377	$	14,279	$	1,098		7.69	%

Additional Highlights

Three months ended September 30, 2019 compared to three months ended September 30, 2018:

Yield on average earning assets, including loan fee income, of 6.50%, an increase of 1.23%
Net interest margin, excluding loan fee income, of 4.85%, unchanged from Q3 2018
Interest income on loans, including loan fee income, totaled $12.2 million, a 9.90% increase
Average loans of $651.2 million, a 9.18% increase

Nine months ended September 30, 2019 compared to nine months ended September 30, 2018:

Yield on average earning assets, including loan fee income, of 6.69%, an increase of 3.94%
Interest income on loans, including loan fee income, totaled $35.9 million, a 10.50% increase
Average loans of $617.4 million, a 6.78% increase
Total loans of $666.8 million, a 14.65% increase
Core deposits of $624.1 million, a 4.38% 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 September 30, 2019 the Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 12.27%, 15.07%, and 16.27% respectively for the Bank. At September 30, 2019 the Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 12.25%, 15.05%, and 16.25% 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 (31.4%) and (6.3%) in the third quarter of 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 September 30,						Nine months ended September 30,
(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	$	12,179		$	11,082		$	35,902		$	32,490
Loan fee income		(841)			(943)			(3,498)			(3,893)
Loan interest income excluding loan fee income	$	11,338		$	10,139		$	32,404		$	28,597

Average total loans	$	651,186		$	596,450		$	617,398		$	578,205
Yield on loans (including loan fee income)		7.42	%		7.43	%		7.77	%		7.49	%
Yield on loans (excluding loan fee income)		6.91	%		6.80	%		7.02	%		6.59	%

Net interest margin (excluding loan fees)
Net interest income	$	10,600		$	9,801		$	31,536		$	29,101
Loan fee income		(841)			(943)			(3,498)			(3,893)
Net interest income excluding loan fees	$	9,759		$	8,858		$	28,038		$	25,208

Average earning assets	$	797,667		$	731,140		$	773,752		$	708,875
Net interest margin (including loan fee income)		5.27	%		5.36	%		5.45	%		5.47	%
Net interest margin (excluding loan fee income)		4.85	%		4.85	%		4.84	%		4.74	%

Pre-tax, pre-provision net earnings
Net income before income taxes	$	(4,963)		$	6,315		$	8,688		$	19,043
Plus: Provision (reversal of) for loan losses		-			-			-			(100)
Pre-tax, pre-provision net earnings	$	(4,963)		$	6,315		$	8,688		$	19,143

Adjusted provision for income tax
Net income before income taxes	$	(4,963)		$	6,315		$	8,688		$	19,043
Total effective adjusted tax rate		-31.4	%		-6.3	%		57.2	%		-2.1	%
Adjusted provision for income taxes	$	1,556		$	(395)		$	4,965		$	(395)

Tax-adjusted net income
Net income before income taxes	$	(4,963)		$	6,315		$	8,688		$	19,043
Adjusted provision for income taxes		1,556			(395)			4,965			(395)
Tax-adjusted net income	$	(6,519)		$	6,710		$	3,723		$	19,438

Tax-adjusted ratios and per share data
Tax-adjusted net income (numerator)	$	(6,519)		$	6,710		$	3,723		$	19,438

Average assets (denominator)	$	806,440		$	742,283		$	782,707		$	718,474
Tax-adjusted return on average assets		-3.21	%		3.59	%		0.64	%		3.62	%

Average shareholders' equity (denominator)	$	100,012		$	80,064		$	95,655		$	75,710
Tax-adjusted return on average shareholders' equity		25.86	%		33.25	%		5.20	%		19.20	%

Average tangible common equity (denominator)	$	98,145		$	77,986		$	93,736		$	73,582
Tax-adjusted return on average tangible common equity		-26.35	%		34.13	%		5.31	%		35.32	%

Weighted average common shares outstanding basic (denominator)		10,149,007			7,634,239			10,174,528			7,404,350
Tax-adjusted net income per common share--basic	$	(0.64)		$	0.88		$	0.37		$	2.63

Weighted average common shares outstanding diluted (denominator)		10,161,778			7,669,348			10,176,360			7,416,182
Tax-adjusted net income per common share--diluted	$	(0.64)		$	0.87		$	0.37		$	2.62
Pro forma weighted average common shares outstanding basic (denominator)		10,189,612						10,188,212
Pro Forma tax-adjusted net income per common share--basic	$	0.50					$	1.50

Pro forma weighted average common shares outstanding diluted (denominator)		10,176,841						10,186,320
Pro forma tax-adjusted net income per common share--diluted	$	0.50					$	1.50

Tangible assets
Total assets	$	826,349		$	751,173
Less: Goodwill and intangibles		(1,840)			(2,046)
Tangible assets	$	824,509		$	749,127

Tangible shareholders' equity
Total shareholders' equity	$	100,615		$	82,765
Less: Goodwill and intangibles		(1,840)			(2,046)
Tangible shareholders' equity	$	98,775		$	80,719

Tangible shareholders' equity
Tangible shareholders' equity (numerator)	$	98,775		$	80,719
Tangible assets (denominator)	$	824,509		$	749,127
Tangible common equity to tangible assets		11.98	%		10.78	%

End of period common shares outstanding		10,057,506			10,187,500
Book value per share	$	10.00		$	8.12
Tangible book value per share	$	9.82		$	7.92
Total shareholders' equity to total assets		12.18	%		11.02	%

	Net Interest Margin Excluding Loan Fee Income
	For the Three Months Ended September 30,
	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)	$	145,147	$	884		2.43	%	$	133,322	$	657		1.97	%
Investment securities(2)		1,069		4		1.48			1,053		—		0.00
Loans held for sale		265		—		0.00			315		—		0.00
Total loans(3)		651,186		11,338		6.91			596,450		10,139		6.80
Total interest-earning assets		797,667		12,230		6.08			731,140		10,796		5.91
Noninterest-earning assets		8,773							11,143
Total assets	$	806,440						$	742,283

Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts	$	287,241		1,234		1.70	%	$	261,013		1,019		1.56	%
Time deposits		220,935		1,237		2.22			207,800		862		1.66
Total interest-bearing deposits		508,176		2,471		1.93			468,813		1,881		1.60
Other borrowings		—		—		0.00			4,487		57		5.08
Total interest-bearing liabilities		508,176		2,471		1.93			473,300		1,938		1.64

Noninterest-bearing liabilities:
Noninterest-bearing deposits		193,785							184,994
Other noninterest-bearing liabilities		4,467							3,925
Total noninterest-bearing liabilities		198,252							188,919
Shareholders' equity		100,012							80,064
Total liabilities and shareholders' equity	$	806,440						$	742,283

Net interest income excluding loan fee income			$	9,759						$	8,858
Net interest spread excluding loan fee income(4)						4.15	%						4.27	%
Net interest margin excluding loan fee income						4.85	%						4.85	%


(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 Three Months Ended September 30,
	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)	$	145,147	$	888		2.43	%	$	133,322	$	657		1.97	%
Investment securities(2)		1,069		4		1.48			1,053		—		0.00
Loans held for sale		265		—		0.00			315		—		0.00
Total loans(3)		651,186		12,179		7.42			596,450		11,082		7.43
Total interest-earning assets		797,667		13,071		6.50			731,140		11,739		6.42
Noninterest-earning assets		8,773							11,143
Total assets	$	806,440						$	742,283

Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts	$	287,241		1,234		1.70	%	$	261,013		1,019		1.56	%
Time deposits		220,935		1,237		2.22			207,800		862		1.66
Total interest-bearing deposits		508,176		2,471		1.93			468,813		1,881		1.60
Other borrowings		—		—		0.00			4,487		57		5.08
Total interest-bearing liabilities		508,176		2,471		1.93			473,300		1,938		1.64

Noninterest-bearing liabilities:
Noninterest-bearing deposits		193,785							184,994
Other noninterest-bearing liabilities		4,467							3,925
Total noninterest-bearing liabilities		197,252							188,919
Shareholders' equity		100,012							80,064
Total liabilities and shareholders' equity	$	806,440						$	742,283

Net interest income including loan fee income			$	10,600						$	9,801
Net interest spread including loan fee income(4)						4.57	%						4.78	%
Net interest margin including loan fee income						5.27	%						5.36	%


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

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

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

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

	Net Interest Margin Excluding Loan Fee Income
	For the Nine Months Ended September 30,
	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)	$	155,073	$	2,758		2.40	%	$	129,413	$	1,726		1.78	%
Investment securities(2)		1,062		27		3.40			1,051		—		0.00
Loans held for sale		219		—		0.00			206		—		0.00
Total loans(3)		617,398		32,404		7.02			578,205		28,597		6.59
Total interest-earning assets		773,752		35,216		6.09			708,875		30,323		5.70
Noninterest-earning assets		8,942							9,599
Total assets	$	782,694						$	718,474

Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts	$	289,306		3,924		1.81	%	$	235,088		2,425		1.38	%
Time deposits		206,575		3,254		2.11			227,885		2,515		1.47
Total interest-bearing deposits		495,881		7,178		1.94			462,973		4,940		1.42
Other borrowings		—		—		0.00			4,882		175		4.78
Total interest-bearing liabilities		495,881		7,178		1.94			467,855		5,115		1.46

Noninterest-bearing liabilities:
Noninterest-bearing deposits		186,379							171,185
Other noninterest-bearing liabilities		4,779							3,724
Total noninterest-bearing liabilities		191,158							174,909
Shareholders' equity		95,655							75,710
Total liabilities and shareholders' equity	$	782,694						$	718,474

Net interest income excluding loan fee income			$	28,038						$	25,208
Net interest spread excluding loan fee income(4)						4.15	%						4.25	%
Net interest margin excluding loan fee income						4.84	%						4.74	%


(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 Nine Months Ended September 30,
	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)	$	155,073	$	2,785		2.40	%	$	129,413	$	1,726		1.78	%
Investment securities(2)		1,062		27		3.40			1,051		—		0.00
Loans held for sale		219		—		0.00			206		—		0.00
Total loans(3)		617,398		35,902		7.77			578,205		32,490		7.49
Total interest-earning assets		773,752		38,714		6.69			708,875		34,216		6.44
Noninterest-earning assets		8,942							9,599
Total assets	$	782,694						$	718,474

Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts	$	289,306		3,924		1.81	%	$	235,088		2,425		1.38	%
Time deposits		206,575		3,254		2.11			227,885		2,515		1.47
Total interest-bearing deposits		495,881		7,178		1.94			462,973		4,940		1.42
Other borrowings		—		—		0.00			4,882		175		4.78
Total interest-bearing liabilities		495,881		7,178		1.94			467,855		5,115		1.46

Noninterest-bearing liabilities:
Noninterest-bearing deposits		186,379							171,182
Other noninterest-bearing liabilities		4,779							3,724
Total noninterest-bearing liabilities		191,158							174,909
Shareholders' equity		95,655							75,710
Total liabilities and shareholders' equity	$	782,694						$	718,474

Net interest income including loan fee income			$	31,536						$	29,101
Net interest spread including loan fee income(4)						4.75	%						4.98	%
Net interest margin including loan fee income						5.45	%						5.47	%


(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, except per share data	Unaudited as of
Assets	September 30,		September 30,		December 31,
	2019		2018		2018

Cash and due from banks	$	110,594	$	127,248	$	128,090
Interest-bearing time deposits in other banks		31,890		29,767		31,759
Loans, net		666,755		577,111		592,078
Loans held for sale		-		-		512
Premises and equipment, net		8,395		7,767		7,753
Nonmarketable equity securities		1,072		1,055		1,055
Foreclosed assets held for sale		77		110		110
Goodwill and intangibles		1,840		2,046		1,995
Interest receivable and other assets		5,726		6,069		7,159

Total assets	$	826,349	$	751,173	$	770,511

Liabilities and Shareholders' Equity

Deposits
Noninterest-bearing	$	202,989	$	222,675	$	201,159
Interest-bearing		519,145		441,638		474,743

Total deposits		722,134		664,313		675,902

Borrowings		-		-		-
Income taxes payable		(472)		-		1,913
Interest payable and other liabilities		4,072		4,095		4,229

Total liabilities		725,734		668,408		682,044

Common stock		101		102		102
Additional paid-in capital		92,353		80,136		80,275
Shares in Treasury		(2,645)		-
Retained earnings		10,806		2,527		8,090

Total shareholders' equity		100,615		82,765		88,467

Total liabilities and shareholders' equity	$	826,349	$	751,173	$	770,511

Bank7 Corp.
Consolidated Statements of Income

	Unaudited as of
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Dollars in thousands, except per share data	2019		2018		2019		2018
Interest Income
Loans, including fees	$	12,179	$	11,082	$	35,902	$	32,490
Interest-bearing time deposits in other banks		500		147		1,414		438
Interest-bearing deposits in other banks		392		510		1,398		1,288

Total interest income		13,071		11,739		38,714		34,216

Interest Expense
Deposits		2,471		1,881		7,178		4,940
Other borrowings		-		57		-		175

Total interest expense		2,471		1,938		7,178		5,115

Net Interest Income		10,600		9,801		31,536		29,101

Provision for Loan Losses		-		-		-		100

Net Interest Income After Provision for Loan Losses		10,600		9,801		31,536		29,001

Noninterest Income
Secondary market income		69		95		146		173
Service charges on deposit accounts		110		88		279		261
Other		330		136		602		635

Total noninterest income		509		319		1,027		1,069

Noninterest Expense
Salaries and employee benefits		14,256		2,082		18,792		6,077
Furniture and equipment		229		182		606		491
Occupancy		436		319		1,157		898
Data and item processing		276		248		814		716
Accounting, marketing and legal fees		218		74		507		218
Regulatory assessments		31		145		94		396
Advertising and public relations		71		63		349		413
Travel, lodging and entertainment		153		260		287		618
Other		402		432		1,269		1,200

Total noninterest expense		16,072		3,805		23,875		11,027

Income Before Taxes		(4,963)		6,315		8,688		19,043
Income tax expense		1,556		(395)		4,965		(395)
Net Income	$	(6,519)	$	6,710	$	3,723	$	19,438

Earnings per common share - basic	$	(0.64)	$	0.88	$	0.37	$	2.63
Diluted earnings per common share		(0.64)		0.87		0.37		2.62
Weighted average common shares outstanding - basic		10,149,007		7,634,239		10,174,528		7,404,350
Weighted average common shares outstanding - diluted		10,161,778		7,669,348		10,176,360		7,416,182

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 third quarter 2019 results, which will be broadcast live over the Internet, on Wednesday, October 30, 2019 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://services.choruscall.com/links/bsvn191030.html. For those who cannot listen to the live call, a replay will be available through November 13, 2019 and may be accessed by dialing 1-877-344-7529 and using pass code 10136222. Also, an archive of the webcast will be available shortly after the call at https://services.choruscall.com/links/bsvn191030.html 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

View original content to download multimedia:http://www.prnewswire.com/news-releases/bank7-corp-announces-3q-2019-earnings-300948127.html