Slide 1: Q4 and Year End 2021 Earnings Release
BSVN Q4 and Year End 2021 EARNINGS RELEASE January 28, 2022
Slide 2: BSVN – Corporate Overview
BSVN – Corporate Overview • Positioned in dynamic markets, with a commercial banking emphasis that delivers services via a branch-lite model • Experienced and talented bankers focused on high-touch personalized service Tulsa • Disciplined credit culture that adheres to a robust risk Oklahoma City ma
Slide 3: Full Year 2021 and Q4 Overview
Full Year 2021 and Q4 Overview • PPE(1) totaled $35.1 million for the year, an increase of $3.9 million or Full Year Double-Digit 12.34% compared to 2020, including non-recurring effects of our acquisition of Cornerstone Bank and the recent secondary offering PPE Growth • PPE to average assets is fa
Slide 4: 2021 Adjusted Financials
2021 Adjusted Financials For the Three Months Ended For the Year Ended December 31, 2021 (Dollars in thousands) • Adjusted net income is provided to Adjusted Net Income illustrate how Bank7 would have performed Total Interest Income $ 14,657 $ 56,289 without two non-recurring events that Total Inter
Slide 5: Reliable BSVN Performance
Reliable BSVN Performance Return on Average Assets (2)(3) 6-year average: 2.24% • Despite the challenging rate 2.75% 2.51% environment, we produced robust ROAA 2.17% Pro 2.21% and ROATCE of 2.21% and 20.1% for Forma 2.03% 1.78% 2021, respectively. 1.03% • Industry-leading efficiency ratio(1) 2016 20
Slide 6: Robust and Consistent Organic Growth
Robust and Consistent Organic Growth PPE(1) Pro 12.34% increase YoY Forma • PPE grew 12.34% YoY - Our high level of $35.1 $26.8 $31.2 PPE is achieved in part because of our $25.0 $26.0 strategy of having fewer, but better team $18.4 members, who excel at providing services $15.1 and solutions utiliz
Slide 7: Exceptional Book Value Appreciation
Exceptional Book Value Appreciation Tangible Book Value Per Share Adjusted $13.95 $12.93 $11.69 • TBV per share increased $1.24 or $9.78 10.60%, even though we deployed $8.49 excess capital to complete the all- cash acquisition of Cornerstone Bank 2018 2019 2020 2021 YE 2018 YE 2021 % Change $ Chang
Slide 8: Net Interest Margin Strength
Net Interest Margin Strength • Despite a challenging yield curve, low-yielding PPP loans, and excess liquidity, our net interest margin continues to show strength • PPP loan fee income recognized during the quarter totaled $265,000, with $269,000 remaining to be recognized; PPP loan fees recognized
Slide 9: Asset Quality
Asset Quality Energy Portfolio as a % of Total Loans 18.60% 18.30% • Pandemic related downturn continues to fade 14.40% 14.30% and management is confident that overall cycle NCOs will be within our expected range 9.54% • Even though we’ve seen a reduction in our 2017 2018 2019 2020 2021 energy loan
Slide 10: Energy Portfolio Potential Exposure
Energy Portfolio Potential Exposure Exploration & Production Liquid Guarantor [1], Low decline production with amortizing ability at $30/barrel oil 6% 2.47 Hedged Production into 2022 or beyond; short remaining amortization, low loan to value 92% 35.64 Minimal risk of loss 40% Low decline natural ga
Slide 11: Hospitality Loan Portfolio Detail
Hospitality Loan Portfolio Detail Hotel Portfolio Exposure by Class Balance as of • Blue collar portfolio that is well-protected Flag Type # of Hotels Q4 2021 by the “cycle-down” effect of a recession Economy 15 $38.81 Midscale 20 86.59 • Loans personally guaranteed by Upper Midscale 9 74.14 experie
Slide 12: Hospitality Loan Portfolio Detail
Hospitality Loan Portfolio Detail Metro # Balance Commitment Dallas / Ft. Worth Metro Area 27 $138.72 69.52% $173.25 71.81% Other Texas Metros 8 27.57 13.82% 27.57 11.43% Other 9 33.25 16.66% 40.42 16.76% Total 44 $199.54 100.00% $241.24 100.00% • Significant rebound in revenue throughout Texas with
Slide 13: Earnings-driven Capital Shock-absorption
Earnings-driven Capital Shock-absorption Earnings-driven cushion far exceeds regulatory capital minimums as illustrated over a two-year period, consistent with DFAST parameters (1) Regulatory 2021 Excess Capital to Excess Capital to Total Shock Absorption Minimum Capital Target Ratio Target Ratio Ad
Slide 14: Peer Analysis: PPE to Average Assets
Peer Analysis : PPE to Average Assets 4.00% 3.50% 3.80% 3.00% 3.53% 3.47% 3.36% 3.29% 3.12% 2.50% 2.00% 1.50% 1.00% 1.39% 1.46% 1.44% 1.51% 1.49% 1.30% 0.50% 0.00% 2016 2017 2018 2019 2020 YTD Q3 2021(3) Peers BSVN Income Statement as a Percentage of Average Assets (3) 2016 2017 2018 2019 2020 YTD Q
Slide 15: Deposit Composition
Deposit Composition Core Deposits(1) Deposit Composition as of December 31, 2021 • Deposits totaled $1.2 billion as of December 31, 2021, of which $248.4 million were acquired from Cornerstone Noninterest- NOW deposits $243.2 bearing demand 20.0% $471.5 • Core deposits represented $1.16 billion of 3
Slide 16: Appendix
Appendix 15
Slide 17: Bank7 Corp. Financials
Bank7 Corp. Financials For the Three Months Ended December 31, For the Year Ended December 31, 2021 2020 2021 2020 2019 2019 2018 (3) (Dollars in thousands, except per share data) Pro Forma Income Statement Data: Total interest income $ 14,657 $ 13,324 $ 56,289 $ 53,314 $ 51,709 $ 46,800 Total inter
Slide 18: Bank7 Corp. Performance Ratios
Bank7 Corp. Performance Ratios For the Year Ended December 31, Performance Ratios: 2021 2020 2019 2019 2018 2017 (5) Pro Forma Return on average: (1) Assets 2.21% 2.03% 1.03% 2.51% 2.75% 2.17% (1) Tangible common equity 20.13 19.14 8.61 20.92 26.40 23.31 (1) Shareholders’ equity 19.79 18.82 8.44 20.
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations For the Three Months Ended December 31, For the Year Ended December 31, 2021 2020 2021 2020 2019 2018 2017 (Dollars in thousands, except per share data) Tangible shareholders' equity Total shareholders equity $ 127,408 $ 107,319 $ 127,408 $ 107,319 $ 100,126 $ 88,466 $ 69,17
Slide 20: Loan Portfolio Distribution
Loan Portfolio Distribution Gross Loan Portfolio Composition by Purpose Type Agricultural Non- Agricultural Farmland Farmland Consumer $46.88 $26.22 $28.42 4.5% 2.5% 2.8% Hospitality construction PPP Loans $35.25 Commercial and $18.55 3.4% industrial 1.8% $245.12 Commercial construction 23.8% $79.22
Slide 21: 2019 Pro Forma Net Income Reconciliation
2019 Pro Forma Net Income Reconciliation • On September 5, 2019, our largest shareholders, the Haines Family Trusts, contributed approximately 6.5% of their shares (656,925 shares) to the Company. Subsequently, the Company immediately issued those shares to certain executive officers, which was char
Slide 22: Legal Information and Disclaimer
Legal Information and Disclaimer 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 timing of future changes in