Bank7 Corp. · NASDAQ:BSVN
Bank7 — IPO Roadshow (December 2021)
26 slides from Bank7's IPO roadshow presentation, Dec 7, 2021
Slide 1: BSVN Common Stock Offering Investor Presentation December 2021
BSVN Common Stock OfferingInvestor PresentationDecember 2021
Slide 2: 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
Slide 3: Offering Summary
1 22 137 Company Exchange / Ticker Base Deal Size Overallotment Option Lock-up Period Use of Proceeds Sole Bookrunner Expected Pricing Selling Shareholder(Pre | Pro Forma Ownership) Bank7 Corp. Nasdaq / BSVN William Bradford Haines Financial Services Trust (31.9% | 20.9%(1))(2) 1.0 million shares (1
Slide 4: Positioned in dynamic markets with commercial banking emphasis
Positioned in dynamic markets, with a commercial banking emphasis that delivers services via a branch-lite modelEfficient and consistent operations led by experienced and talented bankers focused on high-touch personalized serviceConsistent organic growth that continues to drive exceptional tangible
Slide 5: A 3-Year Lookback From Our IPO: The BSVN Promise
Dollars are in thousands.Net income is tax-adjusted as if the Company were a C Corporation at the estimated tax rates for the respective periods. Combined federal and state effective tax rates for the nine months ended September 30, 2021 and 2018 of 24.8% and 25.0%, respectively.Pre-tax pre-provisio
Slide 6: Pending Merger with Watonga Bancshares, Inc.
As of transaction announcement.Estimated merger consideration based on Watonga Bancshares, Inc.’s estimated tangible common equity at close.Anticipated run-rate earnings including cost savings and other adjustments.Assumes cost savings equivalent to 40.0% of WBI’s noninterest expense, phased in 75%
Slide 7: Exceptional Book Value Appreciation
Exceptional Book Value Appreciation Tangible Book Value Per Share(1) CAGR since Q3 2018 = 18.9% At Q3 2018, the quarter of our IPO – tangible book value per share was $7.92, compared to tangible book value of $13.34 for the current quarter, an increase of 68.5% Including cash dividends, BSVN has pro
Slide 8: Leveraging Our Employee Base
16.1% increase YoY PPE(1) Total Assets Pro Forma(2) PPE grew 16.1% YoYOur high level of PPE is achieved in part because of our strategy of having fewer, but better FTEs, who excel at providing services and solutions utilizing our technology and processes, delivered through our branch-lite model Leve
Slide 9: Return on Average Assets, ROATCE and Efficiency Ratio
Return on Average Assets(1) Return on Average Tangible Common Equity(1) Efficiency Ratio Despite the challenging rate environment, we continue to produce robust annualized ROAA and ROATCE - 2.29% and 20.8% as of Q3 2021, respectively.Industry-leading efficiency ratio(3) 5-year average: 2.25% Dollars
Slide 10: Peer-Leading Performance
(3) Dollars are in thousands.Peer group is defined as exchange-traded banks nationwide with assets between $500mm-$5bn (161 banks); Source: S&P Global Market Intelligence.Excludes one-time, non-cash executive stock transfer compensation expense of $11.8 million.As of Q3 2021, the latest data availab
Slide 11: Loan Portfolio Distribution and Growth
Dollars are in millions. Data as of September 30, 2021. Loan Portfolio Distribution and Growth Gross Loan Portfolio Composition by Purpose Type Historical Total Loan Growth CAGR Since 2016: 13.7%
Slide 12: Hospitality Loan Portfolio Detail
Blue collar portfolio that is well-protected by the “cycle-down” effect of a recession Loans personally guaranteed by experienced owner/operators with decades of history that spans multiple recessionsGeographically concentrated in TX (83%) and other markets with few remaining COVID restrictionsDiver
Slide 13: Hospitality Loan Portfolio Detail (Continued)
Consistent underwriting fundamentals with disciplined equity requirements, debt coverage ratio requirements, personal recourse, and rapid amortization Portfolio Metrics – 33 Operating Properties Significant rebound in revenue throughout Texas with Q2 2021 hospitality revenue exceeding Q2 2019(1) Con
Slide 14: Energy Portfolio Potential Exposure
Dollars are in millions.Liquid Guarantor: Includes any loan that is backed by a guarantor with liquidity that exceeds 50% of the outstanding balance of a secured loan. Minimally Impacted: Includes borrowers that were minimally impacted by lower prices in the 2019 -2020 downturn.Moderate Loss Risk: I
Slide 15: Asset quality: NPAs, ALLL and energy exposure
Continued improvement in NPA levels after peaking in Q3 2020. Currently at 1.07% and concentrated 70% in a single credit Underwriting practices withstood the pandemic induced economic stress with zero hospitality loans in the NPA bucket, and overall NPA’s are normalizingPandemic related downturn con
Slide 16: Historical Deposit Growth and Composition
Historical Deposit Growth Compound Annual Growth Rate = 14.1% Deposit Composition as of September 30, 2021 84% of our loan customers also had a deposit relationship with us as of September 30, 2021Total organic core deposit growth YoY was $107.7 million, or 13.13%Core deposits totaled $928.0 million
Slide 17: Net Interest Margin Strength
Net Interest Margin Despite a challenging yield curve, low-yielding PPP loans, and excess liquidity, our net interest margin continues to show strengthPPP loan fee income recognized during the third quarter totaled $297,000, with $533,000 remaining to be recognized; YTD 2021 PPP loan fees recognized
Slide 18: Consolidated Capital Ratios
Consolidated Capital Ratios Tangible Equity to Tangible Assets(1) Tier 1 Leverage Ratio Tier 1 Risk-Based Capital Ratio Total Risk-Based Capital Ratio Represents a non-GAAP financial measure, see non-GAAP reconciliations table in the appendix for reconciliation to the most comparable GAAP measure fo
Slide 19: Interest Rate Sensitivity
1 22 137 Interest Rate Sensitivity Source: Prospectus supplement. As of December 31, 2020
Slide 20: Appendix
Appendix
Slide 21: Bank7 Corp. Financials
Net income and earnings per share are tax-adjusted as if the Company were a C Corporation at the estimated tax rates for the respective periods. EPS calculation is based on diluted shares. Combined federal and state effective tax rates for the nine months ended September 30, 2020 and 2021 of 25.8% a
Slide 22: Bank7 Corp. Financials (Continued)
Dollars in thousandsReturn on average assets and shareholders’ equity are tax-adjusted as if the Company were a C Corporation at the estimated tax rates for the respective periods.Efficiency ratio is calculated by dividing noninterest expense by the sum of net interest income on a tax equivalent bas
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Dollars in thousands, except per share.
Slide 24: Non-GAAP Reconciliations (Continued)
Non-GAAP Reconciliations (Continued) Dollars in thousands.All pro forma amounts relate to the one-time, non-cash executive stock transfer which occurred in September 2019. These amounts remove the compensation expense and related tax impact from net income. See detail and reconciliation on slide 26
Slide 25: Non-GAAP Reconciliations (Continued)
Non-GAAP Reconciliations (Continued) Dollars in thousands.
Slide 26: 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 charged as compensation expense of $11.8 millio