Bank7 Corp. · NASDAQ:BSVN
Bank7 — Q1 2022 Earnings Presentation
23 slides from Bank7's earnings presentation, Apr 26, 2022
Slide 1: Q1 2022 Earnings Release
BSVN Q1 2022 EARNINGS RELEASE April 26, 2022
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 • Disciplined credit culture that adheres to a robust risk management framework r
Slide 3: Q1 2022 Overview
Q1 2022 Overview For the Three Months Ended March 31, (Dollars in thousands) 2022 2021 $ / bps Change % Change Earnings per common share $ 0.68 $ 0.56 $ 0.12 21.50% Impressive EPS Growth TBV per common share 13.01 12.18 0.83 6.80% and Strong Shareholder ROATCE (1) 20.87% 19.29% 1.58 8.16% Returns •
Slide 4: Reliable Top Performer
Reliable Top Performer Return on Average Tangible Common Equity (1) (2) • On a YoY basis, our 20.9% ROATCE represents an 8.16% increase compared 6-year average: 21.9% to Q1 2021 26.4% 21.7% 23.3% 20.9% 20.1% 20.9% • As expected, our Q4 acquisition caused a Pro Forma 19.1% temporary decline in our RO
Slide 5: Robust and Consistent Organic Growth
Robust and Consistent Organic Growth PPE(1) • PPE grew 5.98% YoY - Our high level of Pro PPE is achieved in part because of our Forma $31.2 $35.1 $26.8 strategy of having fewer, but better, team $25.0 $26.0 members who excel at providing services $18.4 and solutions utilizing our technology and $15.
Slide 6: Proven Strong Shareholder Returns
Proven Strong Shareholder Returns Tangible Book Value Per Share Earnings Per Share 14% ce 2018 = $12.93 $13.01 sin CAGR $11.69 $2.56 $9.78 $2.05 $1.96 $8.49 Pro Forma 21.5% increase YoY $ 0.81 $0.68 $0.56 (1) 2018 2019 2020 2021 Q1 2022 2019 2020 2021 Q1 2021 Q1 2022 YE 2018 Q1 2022 % Change $ Chang
Slide 7: Investment Portfolio
Investment Portfolio Available-for-Sale Securities Portfolio U.S. Treasuries $104.05 53% Municipal - Tax Exempt $22.42 11% (1) Mortgage Backed Securities Municipal - Taxable $55.68 $10.54 Corporate 5% 28% $5.41 3% U.S. Federal Agencies $0.25 0% • Weighted Average Duration : 3.17 Years • Book Yield:
Slide 8: 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 Variable-Rate Loans At Floor $ 327.54 30.77% $793.4 25 bps 51.81 4.87% 75% 50 bps 112.35 10.55% ($774.5m are dai
Slide 9: Net Interest Margin
Net Interest Margin • Net interest margin decline driven by investment portfolio acquired in December 2021 • Despite the slightly lower NIM, our shareholder returns remain best in class • PPP loan fee income recognized during the quarter totaled $111,000, with $157,000 remaining to be recognized; PP
Slide 10: Asset Quality
Asset Quality Energy Portfolio as a % of Total Loans • Continued broadening and deepening of the loan portfolio with less dependency on 18.60% 18.30% energy and hospitality lending activity 14.40% 14.30% 10.85% 9.54% 2017 2018 2019 2020 2021 Q1 2022 • Although we intentionally reduced our energy loa
Slide 11: Energy Portfolio Potential Exposure
Energy Portfolio Potential Exposure Exploration & Production Liquid Guarantor [1] and/or low decline production with amortizing ability at low oil and gas prices 8% 4.56 Minimal risk of loss 48% Hedged Production into 2023 or beyond; short remaining amortization, low loan to value 92% 51.51 $56.07 M
Slide 12: 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 Q1 2022 Economy 16 $40.63 • Loans personally guaranteed by Midscale 19 83.76 experienced owner/operators wi
Slide 13: Hospitality Loan Portfolio Detail
Hospitality Loan Portfolio Detail Metro # Balance Commitment Dallas / Ft. Worth Metro Area 26 $128.90 71.95% $157.40 73.27% Other Texas Metros 7 17.36 9.69% 17.36 8.08% Other 9 32.89 18.36% 40.07 18.65% Total 42 $179.15 100.00% $214.83 100.00% • Significant rebound in revenue throughout Texas with Q
Slide 14: Peer Analysis: PPE to Average Assets
Peer Analysis : PPE to Average Assets 4.00% 3.50% 3.80% 3.00% 3.53% 3.44% 3.36% 3.29% 3.12% 2.50% 2.00% 1.50% 1.00% 1.39% 1.46% 1.44% 1.51% 1.47% 1.30% 0.50% 0.00% (3) 2016 2017 2018 2019 2020 2021 Peers BSVN Income Statement as a Percentage of Average Assets 2017 2018 2019 2020 2021(3) Peer Group P
Slide 15: 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 Q1 2022 Excess Capital to Excess Capital to Total Shock Absorption Minimum Capital Target Ratio Target Ratio
Slide 16: Deposit Composition
Deposit Composition Core Deposits(1) Deposit Composition as of March 31, 2022 • Deposits totaled $1.3 billion as of March 31, 2022, of which $282.6 million were acquired NOW deposits from Cornerstone $358.2 27.9% • Core deposits represented $1.24 billion of Noninterest- bearing demand $421.0 total d
Slide 17: Appendix
Appendix ExNa
Slide 18: Bank7 Corp. Financials
Bank7 Corp. Financials For the Three Months Ended March 31, For the Year Ended December 31, 2022 2021 2021 2020 2019 2019 2018 (3) (Dollars in thousands, except per share data) Pro Forma Income Statement Data: Total interest income $ 14,925 $ 13,188 $ 56,289 $ 53,314 $ 51,709 $ 46,800 Total interest
Slide 19: Bank7 Corp. Performance Ratios
Bank7 Corp. Performance Ratios For the Three Months Ended March 31, For the Year Ended December 31, Performance Ratios: 2022 2021 2021 2020 2019 2019 2018 (5) Pro Forma Return on average: Assets(1) 1.89% 2.11% 2.96% 2.03% 1.03% 2.51% 2.75% (1) Tangible common equity 20.87 19.29 20.13 19.14 8.61 20.9
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations For the Three Months Ended March 31, For the Year Ended December 31, 2022 2021 2021 2020 2019 2018 (Dollars in thousands, except per share data) Tangible shareholders' equity Total shareholders equity $ 128,648 $ 111,730 $ 127,408 $ 107,319 $ 100,126 $ 88,466 Goodwill and ot
Slide 21: Loan Portfolio Distribution
Loan Portfolio Distribution Gross Loan Portfolio Composition by Purpose Type Agricultural Non- Agricultural Farmland Farmland $41.48 Consumer $21.57 3.9% $19.35 1.8% 2.0% Hospitality construction PPP Loans $26.52 $14.20 2.5% Commercial and 1.3% industrial Commercial construction $287.25 $87.59 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