Bank7 Corp. · NASDAQ:BSVN
Bank7 — Q3 2022 Earnings Presentation
21 slides from Bank7's earnings presentation, Oct 26, 2022
Slide 1: Q3 2022 Earnings Release
BSVN Q3 2022 EARNINGS RELEASE October 26, 2022
Slide 2: BSVN – Corporate Overview
BSVN – Corporate Overview • Positioned in dynamic markets, with a commercial banking emphasis delivering services via a branch-lite model • Experienced and talented bankers focused on high-touch personalized service, targeting entrepreneurs and their commercial banking needs • Disciplined credit cul
Slide 3: Q3 Overview
Q3 Overview Q3 2022 Q2 2022 % Change Record PPE, Net (Dollars in thousands) Pre-provision pre-tax earnings $ 12,762 $ 9,513 34.2% Income, and EPS Net income 8,041 7,024 14.5% Diluted earnings per share $0.87 $0.76 14.5% • Core loans(1) increased by $88.11 million or 7.71% compared to Q2 – Strong Org
Slide 4: Exceptional Earnings & Capital Growth – Four Years Post IPO
Exceptional Earnings & Capital Growth – Four Years Post IPO Tangible Book Value Per Share Diluted Earnings Per Share $13.86 $12.93 $2.56 $11.69 $9.78 $2.05 $1.96 $8.49 Pro 14.5% increase Forma $0.87 $ 0.81 $0.76 $0.67 2018 2019 2020 2021 Q3 2022 2019 (1) 2020 2021 Q1 2022 Q2 2022 Q3 2022 • Consisten
Slide 5: Reliable Top Performer
Reliable Top Performer • ROATCE was 25.49% for Q3, an 8.46% Return on Average Tangible Common Equity (1) (2) increase compared to Q2 5 - year average: 22.0% • As expected, our Q4 2021 acquisition of 26.4% 23.3% 23.5% 25.5% Cornerstone Bank caused a temporary 20.9% 19.1% 20.1% 20.9% decline in our RO
Slide 6: Strategic Growth in Dynamic Markets
Strategic Growth in Dynamic Markets Total Assets $1,581.0 $1,350.5 $1,016.7 $866.4 $770.5 $703.6 $613.8 $563.5 $479.5 2014 2015 2016 2017 2018 2019 2020 2021 Q3 2022 2015 2018 2020 LPO opened in Irving, TX Completed IPO Full service branch opened in Tulsa, OK 2014 2017 2019 2021 Kansas acquisition F
Slide 7: Broad & Deep Loan Growth
Broad & Deep Loan Growth Loan Portfolio Trends – Selected Categories Gross Loans $1,237.49 $1,030.98 $171.08 13.8% $116.71 26.1% $839.09 $322.97 $708.56 $101.98 $245.10 $601.75 $564.59 $102.14 $204.32 $233.17 18.8% $110.17 $199.89 $104.70 $158.63 $100.28 $114.45 $193.98 $166.96 $83.81 $122.96 $510.2
Slide 8: Deposit Growth & Composition
Deposit Growth & Composition Historical Deposit Growth $1,437.3 $1,217.5 $757.5 $905.5 65.4% $675.9 $625.8 69.9% 72.8% 73.5% 70.2% 71.1% • Year-to-date total deposits have 29.8% 28.9% 27.2% 30.1% 34.6% increased $219.9 million or 18.06% 26.5% 2017 2018 2019 2020 2021 Q3 2022 Noninterest-bearing depo
Slide 9: Robust and Consistent PPE Growth
Robust and Consistent PPE Growth PPE(1) Pro $35.1 • Record PPE of $12.76 million, an Forma $26.8 $31.2 increase of $3.25 million or 34.15% $25.0 $26.0 compared to Q2 $18.4 34.15% increase QoQ $15.1 $12.8 $8.6 $9.5 • Strong PPE growth was driven by: • Rising rates and an asset 2016 2017 2018 2019 202
Slide 10: 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 Fixed Rate Loans Variable Rate Loans at Floor $ 933.88 75.47% Variable Rate Loans (1) (> 1 Year) Fixed Rate Loan
Slide 11: Consistent Net Interest Margin
Consistent Net Interest Margin • Due to our asset sensitive balance sheet and strong loan growth, net interest margin continues to show strength Net Interest Margin 5.87% 5.49% 5.35% 5.01% 5.12% 5.04% 1.28% 0.71% 0.57% 4.66% 0.53% 0.74% 4.42% 4.47% 0.44% 4.78% 4.78% 0.46% 4.59% 4.48% 0.42% 4.60% 4.3
Slide 12: Loan Portfolio Distribution
Loan Portfolio Distribution Gross Loan Portfolio Composition by Purpose Type Agricultural Non- Agricultural Farmland Farmland $45.67 Consumer $19.70 3.7% $20.59 1.6% 1.7% Hospitality construction PPP Loans $40.49 Commercial and industrial $2.64 3.3% $322.97 0.2% Commercial construction 26.1% $92.71
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 Luxury Upscale $0.00 $0.00 0.0% 0.0% • Geographically concentrated in TX (86%) and other Economy markets with favorable economic conditions $3
Slide 14: 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 2022 Excess Capital to Excess Capital to Total Shock Absorption Minimum Capital Target Ratio Target Ratio
Slide 15: Appendix
Appendix Eg
Slide 16: Bank7 Corp. Financials
Bank7 Corp. Financials For the Three Months Ended For the Year Ended December 31, Sep 30, 2022 Jun 30, 2022 2021 2020 2019 2019 2018 (3) (Dollars in thousands, except per share data) Pro Forma Income Statement Data: Total interest income $ 21,691 $ 16,672 $ 56,289 $ 53,314 $ 51,709 $ 46,800 Total in
Slide 17: Bank7 Corp. Performance Ratios
Bank7 Corp. Performance Ratios For the Three Months Ended For the Year Ended December 31, Performance Ratios: Sep 30, 2022 Jun 30, 2022 2021 2020 2019 2019 2018 (5) Pro Forma Return on average: (1) Assets 2.12% 1.95% 2.21% 2.03% 1.03% 2.51% 2.75% (1) Tangible common equity 25.50 23.51 20.13 19.14 8.
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations For the Three Months Ended For the Year Ended December 31, Sep 30, 2022 Jun 30, 2022 2021 2020 2019 2018 (Dollars in thousands, except per share data) Tangible shareholders' equity Total shareholders equity $ 135,817 $ 131,498 $ 127,408 $ 107,319 $ 100,126 $ 88,466 Goodwill
Slide 19: Investment Portfolio
Investment Portfolio Available-for-Sale Securities Portfolio U.S. Treasuries $101.13 58% Municipal - Tax Exempt $20.15 12% (1) Mortgage Backed Municipal - Taxable Securities $7.91 $40.15 4% Corporate 23% $5.00 3% U.S. Federal Agencies $0.19 0% • Weighted Average Duration : 3.2 Years • Book Yield: 1.
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