Bank7(BSVN)2025-03-12 20:15Financial Performance - Pre-tax net income rose by $23.1 million, or 62.1%, to $60.4 million for the year ended December 31, 2024 compared to $37.2 million for the same period in 2023[162]. - Net income rose to $45,698 thousand in 2024, compared to $28,275 thousand in 2023, marking an increase of approximately 61.7%[273]. - Earnings per common share (basic) improved to $4.92 in 2024 from $3.09 in 2023, an increase of about 59.5%[273]. - Noninterest income grew to $11,254 thousand in 2024, up from $9,242 thousand in 2023, representing a rise of approximately 21.8%[273]. - The company declared cash dividends of $0.89 per share in 2024, compared to $0.74 per share in 2023, an increase of approximately 20.3%[276]. Loan and Deposit Trends - Total loans increased by $36.5 million, or 2.7%, to $1.40 billion as of December 31, 2024 compared to December 31, 2023[162]. - Total deposits decreased by $75.9 million, or 4.8%, to $1.52 billion as of December 31, 2024 compared to December 31, 2023[162]. - Average loan balances increased by $76.0 million to $1.39 billion during the year ended December 31, 2024 compared to $1.32 billion for the year ended December 31, 2023[168]. - Brokered deposits increased to $336.7 million as of December 31, 2024, up from $273.5 million in 2023, representing a growth of 23.1%[206]. - Noninterest-bearing demand deposits fell to $313.3 million, accounting for 20.7% of total deposits as of December 31, 2024, compared to 30.4% in 2023[209]. Interest Income and Expense - Net interest income for the year ended December 31, 2024 was $86.2 million, an increase from $82.5 million in 2023[173]. - Interest expense on interest-bearing deposits increased by $6.3 million, or 16.3%, to $45.3 million for the year ended December 31, 2024 compared to 2023[172]. - Total interest income on loans increased by $9.6 million, or 8.7%, to $119.4 million for the year ended December 31, 2024[168]. - The total increase in interest income for 2024 was $9.996 million, with a total increase in interest expense of $6.347 million, resulting in a net interest income increase of $3.649 million[174]. Credit Losses and Asset Quality - The provision for credit losses decreased by $21.1 million, or 100%, for the year ended December 31, 2024 compared to the same period in 2023[164]. - The allowance for credit losses was $17.9 million at December 31, 2024, down from $19.7 million at December 31, 2023, indicating a decrease of 9.1%[187]. - The ratio of nonperforming loans to total loans decreased to 0.51% in 2024 from 2.13% in 2023[196]. - Nonaccrual loans were recorded at $7.17 million as of December 31, 2024, down from $18.94 million in 2023[196]. - The net recoveries to average loans ratio was -0.13% for 2024, compared to 1.25% for 2023, indicating a deterioration in loan recoveries[188]. Capital and Equity - Total shareholders' equity increased to $213.2 million as of December 31, 2024, compared to $170.3 million in 2023 and $144.1 million in 2022, driven by retained capital from net income[220]. - The Bank was categorized as "well-capitalized" by the FDIC as of December 31, 2024, indicating a strong capital position[216]. - The Tier 1 capital to risk-weighted assets ratio was 13.99% as of December 31, 2024, above the required minimum of 8.50%[219]. - The CET 1 capital to risk-weighted assets ratio was 13.99% as of December 31, 2024, exceeding the minimum requirement of 7.00%[219]. Operational Efficiency - Noninterest expense for 2024 was $37.1 million, an increase of $3.7 million, or 11.0%, compared to $33.4 million in 2023[178]. - Salaries and employee benefits expense rose to $20.8 million in 2024, an increase of $3.4 million, or 19.6%, due to overall increases in compensation[178]. - The company reported a net change in deposits of $(75.920) million in 2024, contrasting with a positive change of $159.991 million in 2023[279]. - Cash receipts from the sale of loans originated for sale rose to $20.452 million in 2024, up from $10.535 million in 2023, indicating a growth of 94%[279]. Asset Management - Total assets decreased by $31.9 million, or 1.8%, to $1.74 billion as of December 31, 2024, compared to $1.77 billion as of December 31, 2023[181]. - The company utilizes a comprehensive loan grading system to determine risk potential in loans, which is integral to analyzing the adequacy of the allowance for credit losses[228]. - The estimated fair value of financial instruments is determined based on various factors, including quoted market prices and assumptions about future cash flows[240]. - The company manages its interest rate risk through the Asset/Liability Committee, which regularly reviews the sensitivity of assets and liabilities to interest rate changes[245].