Bank7(US:BSVN)2021-05-10 16:00Financial Position - As of March 31, 2021, total assets were $1.0 billion, total loans were $861.4 million, total deposits were $929.0 million, and total shareholders' equity was $111.7 million[159]. - Total deposits increased to $929.0 million as of March 31, 2021, up from $905.5 million as of December 31, 2020, representing a growth of 2.5%[223]. - Total shareholders' equity increased to $111.7 million as of March 31, 2021, compared to $107.3 million as of December 31, 2020, driven by retained capital from net income[240]. - Total capital to risk-weighted assets ratio for the Bank was 15.35% as of March 31, 2021, exceeding the minimum requirement of 10.50%[240]. - The Tier 1 capital to risk-weighted assets ratio for the Bank was 14.10% as of March 31, 2021, well above the minimum requirement of 8.50%[240]. Income and Expenses - For Q1 2021, pre-tax income was $6.8 million, with interest income decreasing by $319,000 or 2.4% compared to Q1 2020[161]. - Net interest income for Q1 2021 was $12.31 million, compared to $11.43 million in Q1 2020, with a net interest margin of 5.12% compared to 5.31%[173]. - Noninterest income for Q1 2021 was $337,000, an increase of $7,000 or 2.1% compared to Q1 2020[179]. - Noninterest expense for Q1 2021 was $4.6 million, an increase of $192,000 or 4.4% compared to Q1 2020[181]. - Salaries and employee benefits increased to $2.8 million in Q1 2021, up by $316,000 or 12.8% from Q1 2020, due to organic growth[181]. Loan Performance - The provision for loan losses for Q1 2021 was $1.28 million, up from $650,000 in Q1 2020, reflecting increased risk due to elevated nonperforming assets[162]. - The allowance for loan losses increased to $10.9 million as of March 31, 2021, from $9.6 million as of December 31, 2020, representing a growth of approximately 13.5%[193]. - Total nonperforming loans as of March 31, 2021, were $16.377 million, slightly down from $16.535 million as of December 31, 2020, reflecting a decrease of 1.0%[204]. - The ratio of nonperforming loans to total loans improved to 1.90% as of March 31, 2021, compared to 1.98% as of December 31, 2020[204]. - Nonaccrual loans amounted to $14.417 million as of March 31, 2021, down from $14.575 million as of December 31, 2020, showing a decrease of 1.1%[204]. Asset Quality - The allowance for loan losses as a percentage of loans increased to 1.26% at March 31, 2021, from 1.15% at December 31, 2020[178]. - The company modified seven loans totaling $42.3 million related to COVID-19, which were not classified as troubled debt restructurings[199]. - The total charge-offs for the three months ended March 31, 2021, were $50,000, while recoveries amounted to $17,000, resulting in net charge-offs of $33,000[194]. - The allowance allocation for commercial and industrial loans was $4.543 million, representing 41.8% of the total allowance as of March 31, 2021[195]. Deposits and Liquidity - Noninterest-bearing demand deposits accounted for 29.0% of total deposits as of March 31, 2021, compared to 27.2% as of December 31, 2020[224]. - The average balance of total deposits for the three months ended March 31, 2021, was $868.8 million, with a weighted average rate of 0.41%[224]. - Time deposits (more than $250,000) totaled $76.8 million as of March 31, 2021, with a breakdown of $8.1 million maturing in three months and $32.3 million maturing in six to twelve months[227]. - The company actively manages liquidity to meet cash flow requirements while balancing assets and liabilities to achieve return on investment objectives[230]. - The company expects to maintain adequate cash levels through profitability, loan repayment, and continued deposit gathering activities[243]. Regulatory Compliance - The Bank was categorized as "well-capitalized" under the prompt corrective action framework as of March 31, 2021, meeting all applicable regulatory capital requirements[234]. - The Company met all capital adequacy requirements under the Basel III Capital Rules as of March 31, 2021[239]. - The company reported no payment defaults on loans modified as troubled debt restructurings (TDRs) as of March 31, 2021[220]. - Total TDRs, both in accrual and nonaccrual status, were 3 contracts with an outstanding recorded investment of $12.7 million as of March 31, 2021[221]. Growth Strategy - The company plans to grow organically by selectively opening additional branches and pursuing strategic acquisitions[157]. - Commitments to extend credit amounted to $208.4 million as of March 31, 2021, compared to $206.5 million as of December 31, 2020[250].