Slide 1: Q4 and Year End 2022 Earnings Release
BSVN Q4 and Year End 2022 EARNINGS RELEASE January 26, 2023
Slide 2: BSVN – Corporate Overview
BSVN – Corporate Overview • Consistently ranked by S & P Global Market Intelligence as one of the Top Performing Community Banks in the United States 2022 2021 % Change Q4 2022 Q3 2022 % Change Total assets $1,584,169 $ 1,350,549 17.3% $1,584,169 $1,580,952 0.2% (1) Total core loans 1,267,821 1,009,
Slide 3: BSVN – Record Year
BSVN – Record Year Achieved new records in PPE, net income and EPS Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 2021 YoY % Change (1) Total core loans $ 1,047,617 $ 1,142,401 $ 1,230,514 $ 1,267,821 $ 1,267,821 $ 1,009,665 25.6% Total deposits 1,283,279 1,346,291 1,437,336 1,429,300 1,429,300 1,217,471 17.4
Slide 4: Q4 Overview
Q4 Overview Q4 2022 Q4 2021 % Change Q3 2022 % Change Pre-provision pre-tax earnings $ 12,984 $ 8,538 52.1% $ 12,762 1.7% Net income 8,386 5,686 47.5% 8,041 4.3% Earnings per share $ 0.91 $ 0.63 44.2% $ 0.87 4.4% Net interest margin, ex. loan fees 4.87% 4.40% 10.68% 4.60% 5.87% • Driven by continued
Slide 5: Exceptional Capital & EPS Growth
Exceptional Capital & EPS Growth Tangible Book Value Per Share Diluted Earnings Per Share 26.3% increase $14.69 $3.22 $12.93 $11.69 $2.55 $9.78 $8.49 $2.05 $1.96 Pro Forma 4.6% increase $0.87 $0.91 $0.67 $0.76 $ 0.81 2018 2019 2020 2021 2022 2019 (1) 2020 2021 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 •
Slide 6: Reliable Top Performer
Reliable Top Performer Return on Average Tangible Common Equity (1) (2) • ROATCE of 23.93% for 2022, an 18.83% increase compared to 2021 5 year average: 22.1% • As expected, the Q4 2021 acquisition of 26.4% 25.8% 23.9% Watonga Bancshares caused a temporary 20.9% Pro 19.1% 20.1% decline in ROAA and a
Slide 7: PPE to Average Assets vs Peers
PPE to Average Assets vs Peers 4.00% 3.50% 3.00% 3.53% 3.44% 3.36% 3.29% 3.35% 2.50% 2.00% 1.50% 1.48% 1.46% 1.50% 1.46% 1.61% 1.00% 0.50% 0.00% (3) 2018 2019 2020 2021 Q3 2022 Peers BSVN Income Statement as a Percentage of Average Assets (3) 2018 2019 2020 2021 Q3 2022 Peer Group Peer Group Peer Gr
Slide 8: Strength in Core Earnings
Strength in Core Earnings PPE 24.9% increase YoY $43.9 • Record PPE of $43.85 million, an increase of $8.76 million or 24.97% $35.1 $31.2 compared to 2021 $26.0 $26.8 Pro Forma $15.1 $12.8 $13.0 • Strong PPE growth was driven by: • Loan growth (Q1-Q4) 2018 2019(1) 2020 2021 2022 Q3 2022 Q4 2022 • Di
Slide 9: Strategic Growth in Dynamic Markets
Strategic Growth in Dynamic Markets Total Assets $1,584.2 $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 2022 2015 2018 2020 LPO opened in Irving, TX Completed IPO Full service branch opened in Tulsa, OK 2014 2017 2019 2021 Kansas acquisition Full
Slide 10: Broad & Deep Loan Growth
Broad & Deep Loan Growth Loan Portfolio Trends – Selected Categories Gross Loans $1,273.6 $182.8 14.4% $1,031.0 $116.7 25.7% $839.1 $327.6 $708.6 $102.0 $245.1 $601.8 19.2% $102.1 $204.3 $244.3 $110.2 $199.9 18.3% $158.6 19.0% $114.5 $194.0 $167.0 40.7% 20.4% $123.0 $518.9 $469.3 $254.2 $280.8 $338.
Slide 11: Deposit Growth & Composition
Deposit Growth & Composition Historical Deposit Growth $1,429.3 $1,217.5 $905.5 69.3% $757.5 69.9% $675.9 72.8% 70.2% 71.1% • YoY total deposits increased 28.9% 27.2% 30.1% 30.7% $211.8 million or 17.40% 29.8% 2018 2019 2020 2021 2022 Noninterest-bearing deposits Interest-bearing deposits • Proven a
Slide 12: Consistent Net Interest Margin
Consistent Net Interest Margin • Net interest margin continued to show strength due to strong loan growth, disciplined commercial bankers, and to a lesser extent, our asset sensitive balance sheet 5.49% 5.35% 5.25% 5.01% 5.12% 5.04% 0.71% 0.57% 4.82% 0.38% 0.53% 0.74% 0.44% 4.78% 4.78% 0.44% 4.87% 4
Slide 13: Loan Portfolio Distribution
Loan Portfolio Distribution Agricultural Non- Agricultural Farmland Farmland $44.73 Consumer $21.45 3.5% $18.08 1.7% 1.4% Hospitality construction PPP Loans $25.44 Commercial and industrial $2.64 2.0% Commercial construction $327.58 0.2% $63.21 25.7% 5.0% 1-4 family construction $71.41 5.6% Energy -
Slide 14: Net Charge-Offs to Average Loans
Net Charge-Offs to Average Loans 0.43% 0.43% 0.39% 0.06% 0.07% 0.09% 0.03% 0.00% 0.01% 0.00% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Low historical charge-offs due to: • Disciplined approach to lending • Geographic footprint in high growth metros with thriving economies (OK and TX) • Manag
Slide 15: Hospitality Loan Portfolio Detail
Hospitality Loan Portfolio Detail Hotel Portfolio by Class Luxury Upscale $0.00 $0.00 0.0% 0.0% Economy Upper Midscale $41.41 $60.09 17.0% 24.6% • No historical NCOs in the hospitality segment • Blue collar portfolio that is well-protected by the “cycle- down” effect of a recession • Geographically
Slide 16: 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 YE 2022 Excess Capital to Excess Capital to Total Shock Absorption Minimum Capital Target Ratio Target Ratio
Slide 17: Appendix
Appendix BAN
Slide 18: Bank7 Corp. Financials
Bank7 Corp. Financials For the Three Months Ended For the Year Ended December 31, Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 2022 2021 2020 2019 2019 2018 (3) (Dollars in thousands, except per share data) Pro Forma Income Statement Data: Total interest income $ 25,462 $ 21,691 $ 16,672 $ 14
Slide 19: Bank7 Corp. Performance Ratios
Bank7 Corp. Performance Ratios For the Three Months Ended For the Year Ended December 31, Performance Ratios: Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 2022 2021 2020 2019 2019 2018 (5) Pro Forma Return on average: (1) Assets 2.15% 2.12% 1.95% 1.89% 2.02% 2.21% 2.03% 1.03% 2.51% 2.75% (1)
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations For the Three Months Ended For the Year Ended December 31, Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 2022 2021 2020 2019 2018 (Dollars in thousands, except per share data) Tangible shareholders' equity Total shareholders equity $ 144,100 $ 135,819 $ 131,498 $ 118,2
Slide 21: Investment Portfolio
Investment Portfolio Available-for-Sale Securities Portfolio U.S. Treasuries $101.62 59% Municipal - Tax Exempt $20.34 12% (1) Municipal - Taxable Mortgage Backed $8.01 Securities 4% Corporate $38.07 22% $4.93 3% U.S. Federal Agencies $0.19 0% • Weighted Average Duration : 2.9 Years • Book Yield: 1.
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