Bank7 Corp. · NASDAQ:BSVN
Bank7 — Q1 2021 Earnings Presentation
20 slides from Bank7's earnings presentation, Apr 29, 2021
Slide 1: Q1 2021 Earnings Release
BSVN Q1 2021 EARNINGS RELEASE April 29, 2021
Slide 2: BSVN – A Strong Value Proposition / 1Q Overview
BSVN – A Strong Value Proposition / 1Q Overview • Positioned in a dynamic market, with a commercial banking emphasis that delivers services via a branch-lite model. Company • Experienced and talented bankers focused on high-touch personalized service. Highlights • Highly disciplined credit culture t
Slide 3: Outstanding Book Value Appreciation
Outstanding Book Value Appreciation Tangible Book Value Per Share $12.18 $11.69 • Between 2018 and 1Q 2021, tangible book value per share CAGR of 17.4%. $9.78 $8.49 • Over this same period, we have increased tangible book value per share by 43.49%. • When including the cash dividends, BSVN has produ
Slide 4: A Continuation of BSVN Performance
A Continuation of BSVN Performance Return on Average Assets (1)(2) • Even with the additional ALLL build 5-year average: 2.25% and a challenging rate environment, 2.75% we continue to produce strong 2.51% 2.17% Pro annualized ROAA and ROATCE: 2.03% 2.11% 1.78% Forma 2.11% and 19.29% for Q1 2021, res
Slide 5: Strong PPE and Organic Growth
Strong PPE and Organic Growth • A history of strong organic growth. Total Assets • Our high level of PPE is achieved in $1,016.7 $1,046.1 part because of our strategy of having $866.4 fewer, but better FTEs, who excel at $770.5 $703.6 providing services and solutions $613.8 utilizing our enhanced te
Slide 6: PPE to Average Assets – Much stronger than peers
PPE to Average Assets – Much stronger than peers 4.00% 3.50% 3.80% 3.53% 3.00% 3.36% 3.29% 3.12% 2.50% 2.00% 1.50% 1.00% 1.42% 1.50% 1.46% 1.51% 1.36% 0.50% 0.00% (3) 2016 2017 2018 2019 2020 Peers BSVN Income Statement as a Percentage of Average Assets (3) 2016 2017 2018 2019 2020 Peer Group Peer G
Slide 7: Strong PPE Provides Excellent Shock-Absorption
Strong PPE Provides Excellent Shock-Absorption Earnings-driven cushion far exceeds regulatory capital minimums as illustrated over a two-year period, consistent with DFAST parameters(1). Regulatory Q1 2021 Excess Capital to Excess Capital to Total Shock Absorption Minimum Capital Target Ratio Target
Slide 8: Net Interest Margin Strength
Net Interest Margin Strength • Despite a challenging yield curve and low-yielding PPP loans, our net interest margin continues to show strength. • Excluding PPP loans and loan fees, 1Q 2021 core net interest margin was 4.52%, an increase of 23 bps from actual(1). Net Interest Margin 5.87% 5.49% 5.35
Slide 9: Asset Quality
Asset Quality Allowance for Loan Losses to Total Loans • ALLL increased by $1.23 million, or 1.36% 1.31% 1.36% 12.7%, during 1Q 2021 and finished the 1.22% quarter at 1.36% of total loans, up from 1.11% 1.22% at year end 2020.(1) (1) 2017 2018 2019 2020 (1) Q1 2021 Energy Portfolio as a % of Total L
Slide 10: Hospitality Loan Portfolio Detail as of 1Q 21
Hospitality Loan Portfolio Detail as of 1Q 21 Hotel Portfolio Exposure by Class • Blue collar portfolio that is well-protected Balance as of by the “cycle-down” effect of a recession. Flag Type # of Hotels Q1 2021 Economy 18 $45.29 Midscale 22 89.12 Upper Midscale 8 73.53 Upscale 0 - • Experienced o
Slide 11: Hospitality Loan Portfolio Detail
Hospitality Loan Portfolio Detail Metro # Outstanding Balance Commitment Dallas / Ft. Worth Metro Area 28 $132.22 63.59% $186.33 69.02% Other Texas Metros 10 $32.86 15.80% $32.86 12.17% Other 10 $42.86 20.61% $50.79 18.81% Total 48 $207.94 100.00% $269.98 100.00% • Concentrated in “Drive-To” markets
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 8% $2.17 Hedged Production into 2022 or beyond; 3 yr remaining amortization or less, low loan to value 91% 23.66 Minimal risk of loss 28% Low decline na
Slide 13: Appendix
Appendix 12
Slide 14: Bank7 Corp. Financials
Bank7 Corp. Financials As of or for the Three Months Ended March 31, 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 $ 13,188 $ 13,507 $ 53,314 $ 51,709 $ 46,800 $ 42,870 Total
Slide 15: Bank7 Corp. Financials
Bank7 Corp. Financials As of or for the Three Months Ended March 31, For the Year Ended December 31, Performance Ratios: 2021 2020 2020 2019 2019 2018 2017 (5) Pro Forma Return on average: (1) Assets 2.11% 2.32% 2.03% 1.03% 2.51% 2.75% 2.17% (1) Tangible common equity 19.29 20.32 19.14 8.61 20.92 26
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations As of or for the Three Months Ended March 31, 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 $ 111,730 $ 97,616 $ 107,319 $ 100,126 $ 88,466 $ 69,176 Goodwill
Slide 17: Loan Portfolio Distribution
Loan Portfolio Distribution Gross Loan Portfolio Composition by Purpose Type Agricultural Non- Agricultural Farmland Consumer Farmland $26.43 $9.10 $15.86 3.1% PPP Loans 1.1% 1.8% Hospitality construction $64.67 $27.15 7.5% 3.1% Commercial construction $35.28 4.1% 1-4 family construction Commercial
Slide 18: Deposit Composition
Deposit Composition Commentary Deposit Composition as of March 31, 2021 NOW deposits • 85.4% of our loan customers also had a deposit relationship $230.6 with us as of March 31, 2021. 24.8% Noninterest-bearing Core Deposits(1) demand Money Markets $269.1 $164.4 • Total organic core deposit growth YO
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