Bank7 Corp. · NASDAQ:BSVN
Bank7 — Q3 2023 Earnings Presentation
27 slides from Bank7's earnings presentation, Oct 26, 2023
Slide 1: Q3 2023 Earnings Release
Q3 2023 Earnings Release October 26, 2023 0
Slide 2: BSVN – Corporate Overview
BSVN – Corporate Overview Earnings Release: Q3 2023 Consistently ranked by S & P Global Market Intelligence as one of the Top Performing Community Banks in the United States Q3 2023 Actual Adjusted (1) Q3 2022 % Change Q2 2023 % Change Total assets $ 1,772,399 $ 1,580,952 12.1% $ 1,681,305 5.4% Tota
Slide 3: Q3 Overview
Q3 Overview Earnings Release: Q3 2023 Record PPE & Strong Core Earnings Stable Quality Deposits & Liquidity Loan growth and expense discipline drove record PPE of Uninsured deposits represent 22.77% of total deposits, $14.37 million compared to 33.12% for Q3 2022; adjusted uninsured deposits C
Slide 4: Q3 Adjusted Financials
Q3 Adjusted Financials Earnings Release: Q3 2023 For the Three Months Ended (1) Adjusted Sep 30, 2023 Adjustments Sep 30, 2023 (Do llars in tho usands, except per share data) ■ Adjusted Financials provided to illustrate how INCOME STATEMENT DATA BSVN would have performed without two Total interest i
Slide 5: Liquidity and Asset Sensitivity
Liquidity and Asset Sensitivity Earnings Release: Q3 2023 Asset Sensitivity < 1 year 1 to 2 years 2 to 3 years > 3 years Total Earning Assets: Cash and cash equivalents, and interest-bearing time deposits $ 185,925 $ 747 $ - $ - $ 186,672 Gross Loans 1,081,930(1) 113,735 67,974 132,099 1,395,738 Sec
Slide 6: Deposit Growth & Composition
Deposit Growth & Composition Earnings Release: Q3 2023 CAGR since 2018: 19.7% $1,593.6 $1,429.3 $1,217.5 $905.5 69.8% $757.5 69.3% $675.9 69.9% 72.8% 70.2% 71.1% 30.1% 30.7% 30.2% 29.8% 28.9% 27.2% 2018 2019 2020 2021 2022 Q3 2023 Noninterest-bearing deposits Interest-bearing deposits Deposit Compos
Slide 7: Consistent Net Interest Margin
Consistent Net Interest Margin Earnings Release: Q3 2023 ■ Net interest margin continues to show strength due to disciplined loan pricing, a healthy amount of non-interest bearing deposits, and asset sensitive balance sheet ■ As noted on slide 3, there was a single relationship that moved to non-acc
Slide 8: Consistent Capital & EPS Growth
Consistent Capital & EPS Growth Earnings Release: Q3 2023 Tangible Book Value Per Share Diluted Earnings Per Share CAGR since 2018: 16.0% 27.18% increase $20.00 $3.50 $3.22 $17.24 $2.94 $18.00 $3.00 $16.00 $14.69 $2.55 $12.93 $2.50 $2.31 $14.00 $11.69 $1.96 $2.05 $12.00 $9.78 $2.00 $10.00 $8.49 Pro
Slide 9: Reliable Top Performer
Reliable Top Performer Earnings Release: Q3 2023 Return on Average Tangible Common Equity (1)(2) Return on Average Assets (1)(2) 5 year average: 22.1% 5 year average: 2.3% 30.00% 3.00% 2.75% 26.40% 26.66% 2.51% 2.39% 23.92% 25.00% 2.50% 2.21% 20.90% 20.13% Pro 2.03% 2.02% 20.06% Forma 19.14% 1.82% 2
Slide 10: Consistently Outperforming Peers
Consistently Outperforming Peers Earnings Release: Q3 2023 PPE to Average Assets vs Peers 4.00% 3.50% 3.00% 3.36% 3.44% 3.36% 3.29% 3.29% 2.50% 2.99% 2.00% 1.50% 1.48% 1.47% 1.50% 1.45% 1.49% 1.00% 1.22% 0.50% 0.00% 2018 2019 2020 2021 2022 Q2 2023 Peers BSVN Income Statement as a Percentage of Aver
Slide 11: Strength in Core Earnings
Strength in Core Earnings Earnings Release: Q3 2023 PPE(1) $50.0 $43.9 ■ Record PPE: $45.0 $40.0 $35.1 ■ Quarterly PPE of $14.4 million, an increase of 12.62% $35.0 $31.2 $30.0 $26.0 $26.8 as compared to Q3 2022 $25.0 Pro 12.62% increase $20.0 Forma $15.1 ■ Year-to-date PPE of $41.32 million, an inc
Slide 12: Loan Portfolio Trends – Selected Categories
Loan Portfolio Trends – Selected Categories Earnings Release: Q3 2023 Loan Portfolio Trends CAGR Since 2018: 19.4% $1,396.0 $1,400 $1,273.6 $223.5 16.0% $1,200 $182.8 $1,031.0 $1,000 $116.7 $343.8 24.6% $327.6 $839.1 $800 $102.0 $245.1 $708.6 $601.8 $102.1 $292.8 21.0% $204.3 $244.3 $600 $199.9 $110
Slide 13: Loan Portfolio Distribution
Loan Portfolio Distribution Earnings Release: Q3 2023 Consumer $19.9 / 1.4% PPP Loans Agricultural Non-Farmland $2.0 / 0.1% $23.4 / 1.7% Agricultural Farmland $41.2 / 3.0% Commercial and industrial Hospitality construction $343.8 / 24.6% $24.9 / 1.8% Commercial construction $52.8 / 3.8% 1-4 family c
Slide 14: Net Charge-Offs to Average Loans
Net Charge-Offs to Average Loans Earnings Release: Q3 2023 10 year average: 0.09%(1) 0.43% 0.43% 0.39% 0.07% 0.09% 0.06% 0.03% 0.00% 0.00% 0.01% 0.00% 0.00% 0.00% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 Low historical charge-offs due to: ■ Disciplined approach to le
Slide 15: Diverse CRE Portfolio
Diverse CRE Portfolio Earnings Release: Q3 2023 1-4 Family - Commercial $91.5 / 12.5% Multifamily $37.5 / 5.1% ■ Diverse commercial real estate lending Retail activity in Texas and Oklahoma with an $62.5 / 8.5% emphasis in the DFW, Oklahoma City, and Tulsa metros Office $22.4 / 3.0% ■ Minimal office
Slide 16: Hospitality Loan Portfolio Detail
Hospitality Loan Portfolio Detail Earnings Release: Q3 2023 Hotel Portfolio by Class ■ No historical NCOs in the hospitality segment Midscale ■ Blue collar portfolio that is well-protected by the $158.99 / 54.3% “cycle-down” effect of a recession Upper Midscale $67.40 / 23.0% ■ Geographically concen
Slide 17: Strategic Growth in Dynamic Markets
Strategic Growth in Dynamic Markets Earnings Release: Q3 2023 Total Assets CAGR Since 2014: 16.1% $1,772.4 $1,800.0 $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 Q3
Slide 18: Earnings-driven Capital Shock-absorption
Earnings-driven Capital Shock-absorption Earnings Release: Q3 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 Q3 2023 Capital Excess Capital to Target Excess Capi
Slide 19: Appendix
Appendix 18
Slide 20: Bank7 Corp. Financials
Bank7 Corp. Financials Earnings Release: Q3 2023 For the Three Months Ended For the Year Ended December 31 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Sep 30, 2022 2022 2021 2020 2019 2019 (Do llars in tho usands, except per share data) Pro Forma(3) INCOME STATEMENT DATA Total interest income $ 31,722 $
Slide 21: Bank7 Corp. Performance Ratios
Bank7 Corp. Performance Ratios Earnings Release: Q3 2023 For the Three Months Ended For the Year Ended December 31 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Sep 30, 2022 2022 2021 2020 2019 2019 (Do llars in tho usands, except per share data) Pro Forma(5) RETURN ON AVERAGE(1) Assets 1.82% 2.39% 2.43% 2
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Earnings Release: Q3 2023 For the Three Months Ended For the Year Ended December 31 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Sep 30, 2022 2022 2021 2020 2019 (Do llars in tho usands, except per share data) TANGIBLE SHAREHOLDERS' EQUITY Total shareholders equity $ 167,907 $ 161
Slide 23: Non-GAAP Reconciliations -- Continued
Non-GAAP Reconciliations -- Continued Earnings Release: Q3 2023 For the Three Months Ended For the Year Ended December 31 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Sep 30, 2022 2022 2021 2020 2019 (Do llars in tho usands, except per share data) PRE-PROVISION PRE-TAX EARNINGS Pre-tax net income $ 10,204
Slide 24: Investment Portfolio
Investment Portfolio Earnings Release: Q3 2023 Available-for-Sale Securities Portfolio Corporate $4.25 / 2.5% Municipal - Taxable U.S. Federal Agencies $7.00 / 4.2% $0.14 / 0.1% Municipal - Tax Exempt $18.23 / 10.9% Mortgage Backed Securities $34.08 / 20.4% ■ Weighted Average Duration: 2.3 Years ■ B
Slide 25: 2019 Pro Forma Net Income Reconciliation
2019 Pro Forma Net Income Reconciliation Earnings Release: Q3 2023 On September 5, 2019, the largest shareholders, Haines Family For the Year Trusts, contributed approximately 6.5% of their shares (656,925 Ended: (Do llars in tho usands) Dec. 31, 2019 shares) to the Company. Subsequently, the Compan
Slide 26: Legal Information and Distribution
Legal Information and Distribution Earnings Release: Q3 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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