Slide 1: Q2 2022 Earnings Release
BSVN Q2 2022 EARNINGS RELEASE July 27, 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 • Disciplined credit culture that adheres to a robust risk management framework r
Slide 3: Q2 Overview
Q2 Overview • Record net income of $7 million, an $833,000 increase or 13.47% on a Record Net Income, EPS linked quarter basis and PPE • Record EPS of $0.76, a $0.09 increase or 13.43% on a linked quarter basis • Record PPE of $9.5 million, a $1.05 million increase or 12.32% on a linked quarter basi
Slide 4: Robust and Consistent Growth
Robust and Consistent Growth PPE(1) • Record PPE of $9.5 million, an increase of 12.32% on a linked quarter basis - Our high level of PPE is achieved in part due to Pro Forma $35.1 our strategy of running lean, and having $26.8 $31.2 $25.0 $26.0 excellent team members who excel at $18.4 12.3% increa
Slide 5: Reliable Top Performer
Reliable Top Performer • ROATCE was 23.51% for Q2, a 12.65% Return on Average Tangible Common Equity (1) (2) increase compared to Q1 5 - year average: 21.9% • As expected, our Q4 2021 acquisition of 26.4% 23.3% 20.9% 23.5% Cornerstone Bank caused a temporary 20.9% Pro 19.1% 20.1% decline in our ROAA
Slide 6: Exceptional Earnings Capital Growth
Exceptional Earnings Capital Growth Tangible Book Value Per Share Diluted Earnings Per Share $13.33 $12.93 $11.69 $2.56 $9.78 $8.49 $2.05 $1.96 Pro Forma 13.4% increase $ 0.81 $0.76 $0.67 2018 2019 2020 2021 Q2 2022 (1) 2019 2020 2021 Q1 2022 Q2 2022 • TBV increased despite two factors: • Record EPS
Slide 7: Well Positioned for a Rising Rate Environment
Well Positioned for a Rising Rate Environment Loan Portfolio Repricing Reinforces Benefit of Asset Sensitivity Loan Portfolio Interest Rate Sensitivity Gross Loan Balance % of Gross Loans Variable-Rate Loans At Floor $ 834.63 72.17% $885.1 75 bps increase 47.55 4.11% 77% ($778.9m are daily floaters)
Slide 8: Net Interest Margin
Net Interest Margin • Due to our asset sensitive balance sheet and strong loan growth, net interest margin improved on a linked quarter basis Net Interest Margin 5.87% 5.49% 5.35% 5.16% 5.12% 1.28% 5.01% 0.71% 0.57% 0.79% 0.53% 0.74% 4.44% 4.42% 4.47% 4.78% 4.78% 4.59% 4.48% 0.46% 0.42% 4.37% 4.38%
Slide 9: Loan Portfolio Distribution
Loan Portfolio Distribution Gross Loan Portfolio Composition by Purpose Type Agricultural Non- Agricultural Farmland Farmland $40.78 Consumer $18.91 3.5% $21.01 1.6% 1.8% Hospitality construction PPP Loans $33.71 $9.92 2.9% 0.9% Commercial construction Commercial and industrial $334.32 $89.50 28.9%
Slide 10: Asset Quality
Asset Quality Nonperforming Assets to Total Loans • Continued improvement in NPA levels after peaking in Q3 2020. Currently at 0.83% 1.98% and concentrated 71% in a single credit 1.01% 0.83% 0.35% 0.45% 0.47% 2017 2018 2019 2020 2021 Q2 2022 • Although our overall energy exposure has declined, the r
Slide 11: Hospitality Loan Portfolio Detail
Hospitality Loan Portfolio Detail Hotel Portfolio Exposure by Class • Blue collar portfolio that is well-protected by the “cycle-down” effect of a recession Balance as of Flag Type # of Hotels Q2 2022 • Geographically concentrated in TX (84%) and other Economy 16 $35.95 markets with favorable econom
Slide 12: 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 Q2 2022 Excess Capital to Excess Capital to Total Shock Absorption Minimum Capital Target Ratio Target Ratio
Slide 13: Deposit Composition
Deposit Composition Core Deposits(1) Deposit Composition as of June 30, 2022 NOW deposits • Total deposits of $1.4 billion, a $62.4 million $362.2 26.9% increase or 4.9% on a linked quarter basis Noninterest- bearing demand $442.1 32.9% Money Markets $266.4 19.8% Time Time deposits > $250K deposits
Slide 14: Appendix
Appendix Eg
Slide 15: Bank7 Corp. Financials
Bank7 Corp. Financials For the Three Months Ended For the Year Ended December 31, Jun 30, 2022 Mar 31, 2022 2021 2020 2019 2019 2018 (3) (Dollars in thousands, except per share data) Pro Forma Income Statement Data: Total interest income $ 16,672 $ 14,925 $ 56,289 $ 53,314 $ 51,709 $ 46,800 Total in
Slide 16: Bank7 Corp. Performance Ratios
Bank7 Corp. Performance Ratios For the Three Months Ended For the Year Ended December 31, Performance Ratios: Jun 30, 2022 Mar 31, 2022 2021 2020 2019 2019 2018 (5) Pro Forma Return on average: (1) Assets 1.95% 1.89% 2.96% 2.03% 1.03% 2.51% 2.75% (1) Tangible common equity 23.51 20.87 20.13 19.14 8.
Slide 17: Non-GAAP Reconciliations
For the Three Months Ended For the Year Ended December 31, Non-GAAP Reconciliations (Dollars in thousands, except per share data) Jun 30, 2022 Mar 31, 2022 2021 2020 2019 2018 Tangible shareholders' equity Total shareholders equity $ 131,491 $ 128,648 $ 127,408 $ 107,319 $ 100,126 $ 88,466 Goodwill
Slide 18: Investment Portfolio
Investment Portfolio Available-for-Sale Securities Portfolio U.S. Treasuries $102.78 56% Municipal - Tax Exempt $21.77 12% (1) Mortgage Backed Securities Municipal - Taxable $45.37 $9.57 24% 5% Corporate $5.31 U.S. Federal Agencies 3% $0.24 0% • Weighted Average Duration : 3.4 Years • Book Yield: 1.
Slide 19: 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 20: 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