Bank7(US:BSVN)2021-08-12 16:00Financial Performance - For Q2 2021, pre-tax income was $8.1 million, up from $6.7 million in Q2 2020, and for the first six months of 2021, pre-tax income was $14.9 million, compared to $13.5 million in the same period in 2020[154]. - Interest income for Q2 2021 increased by $881,000, or 6.5%, compared to Q2 2020, and for the first six months of 2021, it increased by $561,000, or 2.1%[154]. - The return on average assets was 2.39% for Q2 2021, compared to 2.09% for Q2 2020, and the return on average equity was 21.61% for Q2 2021, compared to 20.36% for Q2 2020[156]. - The efficiency ratio for Q2 2021 was 34.22%, compared to 33.71% for Q2 2020, indicating a slight increase in operational efficiency[156]. - Noninterest income for the three months ended June 30, 2021 was $579,000, an increase of $278,000 or 92.4% compared to $301,000 in the same period last year[185]. - Noninterest income for the six months ended June 30, 2021 was $916,000, an increase of $285,000 or 45.2% compared to $631,000 in the same period last year[187]. Asset and Loan Growth - As of June 30, 2021, total assets were $1.1 billion, total loans were $932.0 million, total deposits were $1.0 billion, and total shareholders' equity was $117.0 million[152]. - Total assets increased by $116.4 million or 11.5% to $1.1 billion as of June 30, 2021, driven by strong loan and deposit growth in key metropolitan areas[194]. - Gross loans reached $936.1 million as of June 30, 2021, up from $839.1 million as of December 31, 2020, representing a significant growth in the loan portfolio[196]. - Average total loans for Q2 2021 were $889.3 million with loan yields of 6.48%, compared to $826.1 million with loan yields of 6.52% in Q2 2020[154]. - The company had 359 Paycheck Protection Program (PPP) loans totaling $47.5 million, an increase from 166 loans totaling $44.9 million as of December 31, 2020[158]. Interest and Noninterest Income - Net interest margin for Q2 2021 was 5.38%, compared to 4.99% for Q2 2020, reflecting improved profitability from interest-earning assets[168]. - Loan fees for Q2 2021 totaled $2.5 million, an increase of $895,000 or 54.9%, driven by loan growth and increased PPP fees[168]. - Interest income from short-term investments decreased by $397,000 or 71.7%, totaling $157,000 compared to $554,000 in the same period last year[174]. - Loan fees increased by $1.6 million or 56.2%, totaling $4.5 million, driven by loan growth and increased PPP fees[174]. - Net interest margin for the first six months of 2021 was 5.25%, up from 5.14% in the same period of 2020[174]. Noninterest Expense and Efficiency - Noninterest expense for the three months ended June 30, 2021 was $4.9 million, an increase of $752,000 or 18.2% compared to $4.1 million in the same period last year[188]. - Noninterest expense for the six months ended June 30, 2021, was $9.4 million, an increase of $943,000 or 11.1% compared to the same period in 2020[191]. - Total noninterest expense for the second quarter of 2021 was $4.875 million, reflecting an increase of $752,000 or 18.24% from $4.123 million in the same quarter of 2020[189]. - Salaries and employee benefits increased by $668,000 or 13.17% to $5.739 million for the six months ended June 30, 2021, attributed to organic growth in the employee base[192]. Credit Quality and Loan Losses - The provision for loan losses for Q2 2021 was $1.3 million, slightly down from $1.4 million in Q2 2020, indicating stable credit quality[155]. - The allowance for loan losses as a percentage of loans increased to 1.32% at June 30, 2021, up from 1.15% at December 31, 2020[184]. - The allowance for loan and lease losses was $12.306 million as of June 30, 2021, compared to $9.639 million as of December 31, 2020, indicating a proactive approach to potential loan losses[196]. - Total nonperforming loans decreased to $13.726 million as of June 30, 2021, down from $16.535 million at December 31, 2020, reflecting a reduction of 17.0%[214]. - The ratio of nonperforming loans to total loans improved to 1.47% as of June 30, 2021, compared to 1.98% at December 31, 2020, showing a decrease of 0.51 percentage points[214]. Deposits and Capital - Total deposits as of June 30, 2021, were $1.0 billion, up from $905.5 million as of December 31, 2020, representing an increase of approximately 10.5%[232]. - Noninterest-bearing demand deposits increased to $330.1 million, accounting for 32.7% of total deposits as of June 30, 2021, compared to 27.2% in the previous year[232]. - Total interest-bearing deposits were $678.5 million, representing 67.3% of total deposits as of June 30, 2021[232]. - As of June 30, 2021, total shareholders' equity increased to $117.0 million, up from $107.3 million as of December 31, 2020, representing a 9.0% increase driven by retained capital from net income[245]. - The Bank was categorized as "well-capitalized" under regulatory requirements as of June 30, 2021, exceeding all capital ratios including a total capital ratio of 14.48%[243]. Regulatory and Compliance - Regulatory assessments increased by $185,000 or 158.12% to $302,000 for the six months ended June 30, 2021, reflecting heightened compliance costs[192]. - The Company met all capital adequacy requirements under the Basel III Capital Rules as of June 30, 2021[244]. - The allowance for loan losses is based on management's estimate of probable losses inherent in the loan portfolio, which is regularly reviewed by regulatory agencies[259]. Miscellaneous - The company continues to focus on gathering noninterest-bearing demand deposits through various marketing efforts and community involvement[231]. - There were no payment defaults with respect to loans modified as Troubled Debt Restructurings (TDRs) as of June 30, 2021[228]. - Total TDRs amounted to $12.2 million as of June 30, 2021, with 2 contracts in nonaccrual status[229].