Bank7 Corp. · NASDAQ:BSVN
Bank7 — IPO Roadshow (September 2018)
22 slides from Bank7's IPO roadshow presentation, Sep 10, 2018
Slide 1: Bank7 Corp. Investor Presentation September 2018
Bank7 Corp. Investor PresentationSeptember 2018 Free Writing ProspectusFiled Pursuant to Rule 433Registration Statement No. 333-227010Dated September 10, 2018
Slide 2: Legal Information and Disclaimer
Legal Information and Disclaimer Bank7 Corp. (“Bank7”, “the Company” or “we”) has filed a registration statement (including a prospectus, which is preliminary and subject to completion) with the U.S. Securities and Exchange Commission (the “SEC”) for the offering to which this presentation relates.
Slide 3: Offering Summary
Offering Summary Issuer Ticker / Exchange Base Offering Size Filing Range Base Shares Offered Overallotment Option Pro Forma Market Capitalization Lock-up Use of Proceeds Bookrunners Bank7 Corp. BSVN / Nasdaq Global Select $64.8 million total, comprised of $54.6 million primary and $10.2 million sec
Slide 4: Corporate Overview
Corporate Overview + We are a $728 million in asset commercial bank headquartered in Oklahoma City with 7 total branches in Texas, Oklahoma and Kansas as of June 30, 2018 Our Focus + We focus on serving business owners and entrepreneurs by delivering fast, consistent and well- designed banking solut
Slide 5: Management Team
Name Company Title YearsWithBank7 Prior Experience William B. “Brad” Haines Founder of the Company and Chairman of the Board 14 Founded pipeline construction business and sold to a public company in 1999Significant M&A experience, currently owns and operates over 30 entities primarily focused on ban
Slide 6: Key Investment Highlights
94.8% of loans either mature within one year or were variable rate and adjust daily, as of June 30, 2018 Excess liquidity is primarily invested in federal funds, which re-price dailyNet interest margin (excluding loan fee income) (2) increased 16 basis points for the six months ended June 30, 2018 c
Slide 7: Asset Quality
Asset Quality Allowance for Loan Losses to Nonperforming Loans Net Charge-Offs to Average Loans Allowance for Loan Losses to Total Loans Financial data is as of or for the twelve months ended December 31 of each respective year and as of or for the six months ended June 30, 2018. Nonperforming Asset
Slide 8: Historical Performance
Historical Performance Return on Average Assets (1) Return on Average Equity (1) Dollars are in millions.Financial data is as of or for the twelve months ended December 31 of each respective year and as of or for the six months ended June 30, 2018.Profitability metrics are tax adjusted as if the Com
Slide 9: Balance Sheet and Earnings Growth
Balance Sheet and Earnings Growth Dollars are in millions, except per share.Financial data is as of or for the twelve months ended December 31 of each respective year and as of or for the six months ended June 30, 2018.Net income is tax adjusted as if the Company were a C Corporation at the estimate
Slide 10: Financial Snapshot
Financial Snapshot As of or for the Six Months EndedJune 30, 2018 Net Income (2) Dollars are in millions. Financial data is as of or for the twelve months ended December 31 of each respective year and as of or for the six months ended June 30, 2018.Tangible shareholders’ equity and tangible sharehol
Slide 11: Diversified Loan Portfolio
Diversified Loan Portfolio Dollars are in millions. Data as of June 30, 2018. Gross Loan Portfolio Composition by Purpose Type
Slide 12: Evolution of Loan Portfolio by Geography
Evolution of Loan Portfolio by Geography Dollars are in millions. Gross Loan Mix as of June 30, 2018 Gross Loan Mix as of June 30, 2014
Slide 13: Energy Lending
Mineral and royalty interests valuation increased dramatically as horizontal drilling and modern completion techniques increased pace and total volume of oil and gas recovered from shale fields in U.S. basinsWe finance the purchase and aggregation of acreage in shale fields which are ultimately sold
Slide 14: Hospitality Lending
Hospitality Lending Dollars are in millions. Data as of June 30, 2018. Loan categories are segmented by purpose type and may not tie to our financial statements due to different classifications. Niche focus on lending to the South Asian community in the Dallas/Fort Worth Metropolitan AreaAs of June
Slide 15: Deposit Composition
Deposit Composition Historical Deposit Growth CAGR = 16.9% Deposit Composition as of June 30, 2018 Our Deposit StrategyGather deposits from commercial clients through a suite of targeted deposit offerings, including a variety of remote deposit and cash management productsCommercial loan customers ar
Slide 16: Net Interest Margin Breakdown
Net Interest Margin Breakdown Net Interest Margin Financial data is as of or for the twelve months ended December 31 of each respective year and as of or for the six months ended June 30, 2018.Yield on loans (excluding loan fee income) and net interest margin (excluding loan fee income) are non-GAAP
Slide 17: Acquisition Targeting
Acquisition Targeting Dallas / Fort Worth Oklahoma City Headquarters of 22 Fortune 500 companiesGenerates ~32% of Texas’ gross domestic product~7.5 million residents24 banks between $100 million and $500 million in assets as of June 30, 2018 Headquarters of 5 Fortune 500 companiesHub for numerous in
Slide 18: Conclusion
Conclusion One of the Top Performing Community Banks in the United States Track Record of Industry Leading Profitability and Expense Control Scalable and Consistently Growing Platform Well Positioned for Rising Rates Intense Focus on Underwriting Process and Asset Quality
Slide 19: Appendix
Appendix
Slide 20: Historic Annual Financials
Bank7 Corp. Historic Annual 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.If we gave effect to our conversion from an S Corporation to a C Corporation in connection with this offering as of J
Slide 21: Historic Annual Financials
Bank7 Corp. Historic Annual Financials Return 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.Represents a non-GAAP financial measure. See this Appendix for reconciliation to its most comparable
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations BANE (Doltars in thousands, except per share data) ‘Tangible Shareholders’ Equity: ‘Total shareholders’ equity Less: Goodwill and other intangibles ‘Tangible shareholders’ equity Tangible Assets: Total assets Less: Goodwill and other intangibles Tangible assets End of period