Bank7 Corp. · NASDAQ:BSVN

Bank7 — Q2 2023 Earnings Presentation

27 slides from Bank7's earnings presentation, Jul 20, 2023

  1. Slide 1: Q2 2023 Earnings Release

    BSVN Q2 2023 Earnings Release July 20, 2023 0

  2. Slide 2: BSVN – Corporate Overview

    BSVN – Corporate Overview Earnings Release: Q2 2023 Consistently ranked by S & P Global Market Intelligence as one of the Top Performing Community Banks in the United States Q2 2023 Q2 2022 % Change Q1 2023 % Change Total assets $ 1,681,305 $ 1,487,474 13.0% $ 1,660,539 1.3% Total loans 1,276,283 1,

  3. Slide 3: Q2 Overview

    Q2 Overview Earnings Release: Q2 2023 Record PPE, Net Income, and EPS Stable Quality Deposits & Liquidity Disciplined loan pricing combined with our consistent net Total deposits increased $16.67 million or 1.12% as compared interest margin and low efficiency ratio drove record PPE to Q1 2023. and E

  4. Slide 4: Liquidity and Asset Sensitivity

    Liquidity and Asset Sensitivity Earnings Release: Q2 2023 Comparative Banking Industry Data Q2 2023 Q1 2023 Industry Metrics / Ratios (1) BSVN BSVN Average (1) Cash / Total Assets 11.68% 10.68% 5.78% Cash + Unpledged Securities / Total Assets 20.68% 16.62% N/A HTM Securities / Total Assets 0.00% 0.0

  5. Slide 5: Uninsured Deposits

    Uninsured Deposits Earnings Release: Q2 2023 Uninsured Deposits | Cash/Liquidity Q2 2023 Uninsured Deposits $ 334,308 Less: Insider Deposits > $1 Million (67,654) Less: Collateralized Deposits (18,720) Adjusted Uninsured Deposits $ 247,934 ■ Uninsured deposits total $334.31 million or Q2 2023 22.17%

  6. Slide 6: Deposit Growth & Composition

    Deposit Growth & Composition Earnings Release: Q2 2023 CAGR since 2018: 19.5% $1,508.2 $1,429.3 $1,217.5 $905.5 $757.5 69.3% 71.5% $675.9 69.9% 72.8% 71.1% 70.2% 30.1% 30.7% 28.5% 29.8% 28.9% 27.2% 2018 2019 2020 2021 2022 Q2 2023 Noninterest-bearing deposits Interest-bearing deposits Deposit Compos

  7. Slide 7: Consistent Net Interest Margin

    Consistent Net Interest Margin Earnings Release: Q2 2023 ■ Our net interest margin continued to show strength due to disciplined loan pricing, a healthy amount of non-interest bearing deposits, and our asset sensitive balance sheet ■ During the quarter we benefited 5 bps by a purchase accounting adj

  8. Slide 8: Consistent Capital & EPS Growth

    Consistent Capital & EPS Growth Earnings Release: Q2 2023 Tangible Book Value Per Share Diluted Earnings Per Share CAGR since 2018: 16.1% $18.00 $16.62 $3.50 $3.22 $16.00 $14.69 $3.00 $14.00 $12.93 $2.55 $11.69 $2.50 $12.00 $1.96 $2.05 $9.78 $10.00 $8.49 $2.00 Pro 38.68% increase $8.00 $1.50 Forma $

  9. Slide 9: Reliable Top Performer

    Reliable Top Performer Earnings Release: Q2 2023 Return on Average Tangible Common Equity (1)(2) 5 year average: 22.1% 30.00% 26.40% 28.01% 26.66% ■ As expected, the Q4 2021 acquisition of 25.00% 23.92% Watonga Bancshares caused a temporary 20.90% 20.13% 19.14% 20.00% Pro decline in ROAA and a sligh

  10. Slide 10: Consistently Outperforming Peers

    Consistently Outperforming Peers Earnings Release: Q2 2023 PPE to Average Assets vs Peers 4.00% 3.50% 3.00% 3.44% 3.29% 3.29% 3.25% 2.50% 2.99% 2.00% 1.50% 1.46% 1.50% 1.46% 1.49% 1.00% 1.31% 0.50% 0.00% 2019 2020 2021 2022 Q1 2023 Peers BSVN Income Statement as a Percentage of Average Assets 2019 2

  11. Slide 11: Strength in Core Earnings

    Strength in Core Earnings Earnings Release: Q2 2023 PPE(1) $50.0 $43.9 $45.0 $40.0 $35.0 $35.1 ■ Record PPE of $13.92 million: $31.2 $30.0 $26.0 $25.0 $26.8 ■ An increase of 46.35% as compared to Q2 2022 46.35% increase $20.0 Pro $15.1 Forma $13.9 $15.0 $15.1 $9.5 $10.0 $5.0 ■ Strong PPE was driven

  12. Slide 12: Loan Portfolio Trends – Selected Categories

    Loan Portfolio Trends – Selected Categories Earnings Release: Q2 2023 Loan Portfolio Trends CAGR Since 2018: 18.3% $1,400 $1,273.6 $1,279.0 $1,200 $182.8 $161.5 12.6% $1,031.0 $1,000 $116.7 $327.6 $339.8 26.6% $839.1 $800 $102.0 $245.1 $708.6 $601.8 $102.1 $204.3 $244.3 $271.1 21.2% $600 $199.9 $110

  13. Slide 13: Loan Portfolio Distribution

    Loan Portfolio Distribution Earnings Release: Q2 2023 Consumer, $19.6 / 1.5% PPP Loans, Agricultural Non-Farmland, $2.0 / 0.2% $18.3 / 1.4% Agricultural Farmland, $42.0 / 3.3% Hospitality construction, Commercial and industrial, $10.1 / 0.8% $339.8 / 26.6% Commercial construction, $49.6 / 3.9% 1-4 f

  14. Slide 14: Net Charge-Offs to Average Loans

    Net Charge- Charge-Offs to Average Loans Earnings Release: Q2 2023 COVID-19 Pandemic 0.43% 0.43% 0.39% 0.07% 0.09% 0.06% 0.03% 0.00% 0.00% 0.01% 0.00% 0.00% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1 2023 Q2 2023 Low historical charge-offs due to: ■ Disciplined approach to lending ■ Geogra

  15. Slide 15: Diverse CRE Portfolio

    Diverse CRE Portfolio Earnings Release: Q2 2023 1-4 Family - Commercial $87.8 / 12.7% Multifamily ■ Diverse commercial real estate lending $38.7 / 5.6% activity in Texas and Oklahoma with an Retail emphasis in the DFW, Oklahoma City, and $26.0 / 3.8% Tulsa metros Office $22.5 / 3.3% ■ Minimal office

  16. Slide 16: Hospitality Loan Portfolio Detail

    Hospitality Loan Portfolio Detail Earnings Release: Q2 2023 Hotel Portfolio by Class ■ No historical NCOs in the hospitality segment ■ Blue collar portfolio that is well-protected by the Midscale $156.35 / 57.7% “cycle-down” effect of a recession Upper Midscale $62.18 / 22.9% ■ Geographically concen

  17. Slide 17: Strategic Growth in Dynamic Markets

    Strategic Growth in Dynamic Markets Earnings Release: Q2 2023 Total Assets CAGR Since 2014: 15.9% $1,800.0 $1,681.3 $1,584.2 $1,600.0 $1,400.0 $1,350.5 $1,200.0 $1,016.7 $1,000.0 $866.4 $770.5 $800.0 $703.6 $613.8 $563.5 $600.0 $479.5 $400.0 $200.0 $- 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q2

  18. Slide 18: Earnings-driven Capital Shock-absorption

    Earnings- Earnings-driven Capital Shock- Shock-absorption Earnings Release: Q2 2023 Earnings-driven cushion far exceeds regulatory capital minimums as illustrated over a two-year period, consistent with DFAST parameters(1) Total Shock Absorption Regulatory Minimum Q2 2023 Capital Excess Capital to T

  19. Slide 19: Appendix

    Appendix 18

  20. Slide 20: Bank7 Corp. Financials

    Bank7 Bank7 Corp. Financials Earnings Release: Q2 2023 For the Three Months Ended For the Year Ended December 31 Jun 30, 2023 Mar 31, 2023 Jun 30, 2022 2022 2021 2020 2019 2019 2018 (Dollars in tho usands, except per share data) Pro Forma(3) INCOME STATEMENT DATA Total interest income $ 30,042 $ 27,

  21. Slide 21: Bank7 Corp. Performance Ratios

    Bank7 Corp. Performance Ratios Earnings Release: Q2 2023 For the Three Months Ended For the Year Ended December 31 Jun 30, 2023 Mar 31, 2023 Jun 30, 2022 2022 2021 2020 2019 2019 2018 (Dollars in thousands, except per share data) Pro Forma(6) RETURN ON AVERAGE(1) Assets(2) 2.39% 2.43% 1.95% 2.02% 2.

  22. Slide 22: Non-GAAP Reconciliations

    Non- Non-GAAP Reconciliations Earnings Release: Q2 2023 For the Three Months Ended For the Year Ended December 31 Jun 30, 2023 Mar 31, 2023 Jun 30, 2022 2022 2021 2020 2019 2018 (Do llars in tho usands, except per share data) TANGIBLE SHAREHOLDERS' EQUITY Total shareholders equity $ 161,780 $ 154,00

  23. Slide 23: Non-GAAP Reconciliations -- Continued

    Non- Non-GAAP Reconciliations -- Continued Earnings Release: Q2 2023 For the Three Months Ended For the Year Ended December 31 (Do llars in tho usands, except per share data) Jun 30, 2023 Mar 31, 2023 Jun 30, 2022 2022 2021 2020 2019 2018 PRE-PROVISION PRE-TAX EARNINGS Pre-tax net income $ 12,904 $

  24. Slide 24: Investment Portfolio

    Investment Portfolio Earnings Release: Q2 2023 Available-for-Sale Securities Portfolio Corporate $4.38 / 2.6% Municipal - Taxable U.S. Federal Agencies $7.21 / 4.2% $0.15 / 0.1% Municipal - Tax Exempt $19.52 / 11.5% Mortgage Backed Securities $35.98 / 21.2% ■ Weighted Average Duration: 2.4 Years ■ B

  25. Slide 25: 2019 Pro Forma Net Income Reconciliation

    2019 Pro Forma Net Income Reconciliation Earnings Release: Q2 2023 On September 5, 2019, our largest shareholders, the Haines For the Year Family Trusts, contributed approximately 6.5% of their shares Ended: (Do llars in tho usands) Dec. 31, 2019 (656,925 shares) to the Company. Subsequently, the Co

  26. Slide 26: Legal Information and Distribution

    Legal Information and Distribution Earnings Release: Q2 2023 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

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