Slide 1: Q2 2021 Earnings Release
BSVN Q2 2021 EARNINGS RELEASE July 29, 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: Q2 2021 Overview
Q2 2021 Overview • PPE totaled $9.4 million(1) for the quarter, an increase of 15.6% compared Double-digit PPE to the prior quarter Growth • PPE strength is far greater than our peer group: 3.30% PPE to average assets vs. peer average of 1.61% PPE to average assets(2) • EPS of $0.67, an increase of
Slide 4: Exceptional Book Value Appreciation
Exceptional Book Value Appreciation Tangible Book Value Per Share $12.76 $11.69 • At YE 2018 – the year of our IPO – tangible book value per share was $8.49, compared $9.78 to tangible book value of $12.76 for the $8.49 current quarter, an increase of 50.38% • Including cash dividends, BSVN has prod
Slide 5: Reliable BSVN Performance
Reliable BSVN Performance Return on Average Assets (2)(3) 5-year average: 2.25% • Annualized ROAA and ROATCE as of Q2 2.75% 2021: 2.25% and 20.6%, respectively. 2.51% 2.25% Even with the additional ALLL build and a 2.17% Pro 2.03% challenging rate environment, we 1.78% Forma continue to produce robu
Slide 6: Robust and Consistent Organic Growth
Robust and Consistent Organic Growth PPE(2) Pro $31.2 Forma • PPE grew 12.7% YoY- Our high level of PPE $25.0 $26.0 $26.8 12.7% increase YoY is achieved in part because of our strategy of having fewer, but better FTEs, who excel $18.4 $17.5 $15.1 $15.5 at providing services and solutions utilizing o
Slide 7: PPE to Average Assets / Income Statement as a Percentage of Average Assets
PPE to Average Assets 4.00% 3.50% 3.80% 3.53% 3.00% 3.36% 3.29% 3.30% 3.12% 2.50% 2.00% 1.50% 1.50% 1.51% 1.61% 1.00% 1.36% 1.42% 1.46% 0.50% 0.00% (3) 2016 2017 2018 2019 2020 Q1 2021 Peers BSVN Income Statement as a Percentage of Average Assets (3) 2016 2017 2018 2019 2020 Q1 2021 Peer Group Peer
Slide 8: Deposit Composition
Deposit Composition Core Deposits(1) Deposit Composition as of June 30, 2021 • 82.30% of our loan customers also had a deposit relationship with us as of NOW deposits $248.1 June 30, 2021 24.6% Noninterest-bearing demand • Total organic core deposit growth YoY was $330.1 32.7% $108 million, or 13.5%
Slide 9: 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 2021 Excess Capital to Excess Capital to Total Shock Absorption Minimum Capital Target Ratio Target Ratio
Slide 10: 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 $913,000, with $830,000 remaining to be recognized; YTD PPP loan fees recogni
Slide 11: Asset Quality
Asset Quality Allowance for Loan Losses to Total Loans • Driven by growth in the loan portfolio during the quarter, ALLL increased by 1.36% 1.31% 1.36% 1.39% 1.22% $1.44 million, or 13.3%, totaling $12.3 1.11% million, or 1.39% of total loans(1) (1) 2017 2018 2019 2020 Q1 2021(1) Q2 2021(1) Energy P
Slide 12: Energy Portfolio Potential Exposure
Energy Portfolio Potential Exposure Exploration & Production Liquid Guarantor [1], Low decline production with amortizing ability at $30/barrel oil 5% $2.07 Hedged Production into 2022 or beyond; short remaining amortization, low loan to value 91% 36.46 Minimal risk of loss 37% Low decline natural g
Slide 13: 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 2021 Economy 16 $42.21 Midscale 20 90.09 • Experienced owner/operators with Upper Midscale 9 75.81 Upsca
Slide 14: Hospitality Loan Portfolio Detail
Hospitality Loan Portfolio Detail Metro # Outstanding Balance Commitment Dallas / Ft. Worth Metro Area 26 $135.72 65.22% $177.63 68.86% Other Texas Metros 10 $32.64 15.68% $32.64 12.65% Other 9 $39.75 19.10% $47.69 18.49% Total 45 $208.11 100.00% $257.96 100.00% • Concentrated primarily in “Drive-To
Slide 15: Appendix
Appendix 14
Slide 16: Bank7 Corp. Financials
Bank7 Corp. Financials As of or for the Six Months Ended June 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 $ 27,624 $ 27,064 $ 53,314 $ 51,709 $ 46,800 $ 42,870 Total in
Slide 17: Bank7 Corp. Financials
Bank7 Corp. Financials As of or for the Six Months Ended June 30, For the Year Ended December 31, Performance Ratios: 2021 2020 2020 2019 2019 2018 2017 (5) Pro Forma Return on average: (1) Assets 2.25% 2.20% 2.03% 1.03% 2.51% 2.75% 2.17% (1) Tangible common equity 20.63 20.52 19.14 8.61 20.92 26.40
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations As of or for the Six Months Ended June 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 $ 117,011 $ 101,619 $ 107,319 $ 100,126 $ 88,466 $ 69,176 Goodwill a
Slide 19: Loan Portfolio Distribution
Loan Portfolio Distribution Gross Loan Portfolio Composition by Purpose Type Agricultural Non- Agricultural Farmland Farmland $47.69 Consumer $15.04 5.1% $7.88 0.8% 1.6% Hospitality construction PPP Loans $32.23 $48.41 3.4% 5.2% Commercial construction Commercial and $48.80 industrial 5.2% $243.29 2
Slide 20: 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 21: 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