Bank7 Corp. · NASDAQ:BSVN
Bank7 — Q3 2021 Earnings Presentation
23 slides from Bank7's earnings presentation, Oct 21, 2021
Slide 1: Q3 2021 Earnings Release
BSVN Q3 2021 EARNINGS RELEASE October 21, 2021
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 • Highly disciplined credit culture that adheres to a robust risk management fram
Slide 3: Exceeding Expectations – The BSVN Promise
Exceeding Expectations – The BSVN Promise A 3-Year Lookback From Our IPO September 30, 2021 2018 % Change $/ bps Change (Dollars in thousands) Net Income - C Corp (1) $ 17,473 $ 14,279 22.4% $ 3,194 PPE(2) 26,551 19,143 38.7% 7,408 Total assets 1,146,230 751,173 52.6% 395,057 Total loans 924,699 584
Slide 4: Q3 2021 Overview
Q3 2021 Overview • PPE(1) totaled $9.1 million for the quarter, an increase of $1.7 million or Double-digit PPE 23.48% compared to Q3 2020 Growth • PPE to average assets is far greater than our peer group: 3.65% for BSVN vs. 1.42% peer average (2) • Tangible book value per share of $13.34, an increa
Slide 5: Reliable BSVN Performance
Reliable BSVN Performance Return on Average Assets (2)(3) 5-year average: 2.25% • Despite the challenging rate 2.75% environment, we continue to produce 2.51% 2.17% 2.29% robust annualized ROAA and ROATCE - Pro 1.78% Forma 2.03% 2.29% and 20.8% as of Q3 2021, respectively. 1.03% • Industry-leading e
Slide 6: Robust and Consistent Organic Growth
Robust and Consistent Organic Growth PPE(2) Pro 16.1% increase YoY Forma • PPE grew 16.1% YoY- Our high level of PPE $26.8 $31.2 $26.6 is achieved in part because of our strategy $25.0 $26.0 $22.9 of having fewer, but better FTEs, who $18.4 excel at providing services and solutions $15.1 utilizing o
Slide 7: Exceptional Book Value Appreciation
Exceptional Book Value Appreciation Tangible Book Value Per Share 9% = 18. since 2018 $13.34 • At Q3 2018, the quarter of our IPO – CAGR $11.69 tangible book value per share was $7.92, $9.78 compared to tangible book value of $7.92 $13.34 for the current quarter, an increase of 68.5% • Including cas
Slide 8: Asset Quality
Asset Quality • Continued improvement in NPA levels after Allowance for Loan Losses to Total Loans peaking in Q3 2020. Currently at 1.07% and 1.36% 1.31% 1.22% concentrated 70% in a single credit 1.11% 1.04% • Underwriting practices withstood the (1) pandemic induced economic stress with zero 2017 2
Slide 9: Energy Portfolio Potential Exposure
Energy Portfolio Potential Exposure Exploration & Production Liquid Guarantor [1], Low decline production with amortizing ability at $30/barrel oil 3% 1.97 Hedged Production into 2022 or beyond; short remaining amortization, low loan to value 96% 54.08 Minimal risk of loss 47% Low decline natural ga
Slide 10: 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 Q3 2021 by the “cycle-down” effect of a recession Economy 15 $39.05 Midscale 18 75.21 • Loans personally guaranteed by Upper Midscale 9 73.36 experie
Slide 11: Hospitality Loan Portfolio Detail
Hospitality Loan Portfolio Detail Metro # Balance Commitment Dallas / Ft. Worth Metro Area 24 $123.53 65.84% $163.47 69.61% Other Texas Metros 10 32.30 17.22% 32.30 13.75% Other 8 31.79 16.94% 39.07 16.64% Total 42 $187.62 100.00% $234.84 100.00% • Significant rebound in revenue throughout Texas wit
Slide 12: 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 $297,000, with $533,000 remaining to be recognized; YTD PPP loan fees recogni
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 Q3 2021 Excess Capital to Excess Capital to Total Shock Absorption Minimum Capital Target Ratio Target Ratio
Slide 14: Peer Analysis: PPE to Average Assets
Peer Analysis : PPE to Average Assets 4.00% 3.50% 3.80% 3.53% 3.65% 3.00% 3.36% 3.29% 3.12% 2.50% 2.00% 1.50% 1.00% 1.39% 1.46% 1.44% 1.51% 1.42% 1.30% 0.50% 0.00% (3) 2016 2017 2018 2019 2020 Q2 2021 Peers BSVN Income Statement as a Percentage of Average Assets 2016 2017 2018 2019 2020 Q2 2021(3) P
Slide 15: Deposit Composition
Deposit Composition Core Deposits(1) Deposit Composition as of September 30, 2021 • 84% of our loan customers also had a deposit NOW deposits relationship with us as of September 30, 2021 $233.4 22.9% Noninterest-bearing • Total organic core deposit growth YoY was demand $335.3 $107.7 million, or 13
Slide 16: BSVN + WBI: A Look Forward
BSVN + WBI: A Look Forward Growing Forward – Pro Forma Financial Highlights(1) TBV Earnback ~3 years EPS Accretion - 2022 ~7.3% EPS Accretion - 2023 ~13.4% Price / 2023e Earnings $8.5x (1) For more information, please refer to Form 8-K Filed October 7, 2021 15
Slide 17: Appendix
Appendix [BAN]
Slide 18: Bank7 Corp. Financials
Bank7 Corp. Financials As of or for the Nine Months Ended September 30, For the Year Ended December 31, 2021 2020 2020 2019 2019 2018 2017 (3) (Dollars in thousands, except per share data) Pro Forma Income Statement Data: Total interest income $ 41,632 $ 39,990 $ 53,314 $ 51,709 $ 46,800 $ 42,870 To
Slide 19: Bank7 Corp. Financials
Bank7 Corp. Financials As of or for the Nine Months Ended September 30, For the Year Ended December 31, Performance Ratios: 2021 2020 2020 2019 2019 2018 2017 (5) Pro Forma Return on average: Assets(1) 2.29% 2.07% 2.03% 1.03% 2.51% 2.75% 2.17% Tangible common equity (1) 20.80 19.47 19.14 8.61 20.92
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations As of or for the Nine Months Ended September 30, For the Year Ended December 31, 2021 2020 2020 2019 2018 2017 (Dollars in thousands, except per share data) Tangible shareholders' equity Total shareholders equity $ 122,409 $ 105,230 $ 107,319 $ 100,126 $ 88,466 $ 69,176 Good
Slide 21: Loan Portfolio Distribution
Loan Portfolio Distribution Gross Loan Portfolio Composition by Purpose Type Agricultural Non- Agricultural Farmland Farmland $45.16 Consumer $14.18 4.9% $7.76 0.8% 1.5% Hospitality construction PPP Loans $30.41 $27.28 3.3% Commercial and 2.9% industrial Commercial construction $250.24 $61.09 27.0%
Slide 22: 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 23: 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