Slide 1: BSVN 2Q 2020 Earnings Release
BSVN 2Q 2020 EARNINGS RELEASE July 27, 2020
Slide 2: Corporate Overview
Corporate Overview NASDAQ: BSVN • Consistently recognized as one of the top performing Community Banks in the United States. • Track Record of Strong Profitability and Expense Control. • Intense Focus on Underwriting and Asset Quality. • Scalable and Consistently Growing Platform. • A company that p
Slide 3: 2Q Overview
2Q Overview • Core net interest margin of 4.30% (excludes loan fees). • Historical low 35.3% efficiency ratio(1), which was driven by solid revenue growth and Continued Strong disciplined cost control. • Excellent PPE(1) quarter of $8.1 million. Performance • Year-to-date TBV increase of $1.05 per s
Slide 4: Bank7 Corp. Key Statistics
Bank7 Corp. Key Statistics For the Six Months Ended Total Assets June 30, 2020 $1,004.1 $974.4 Balance Sheet Total assets $1,004.1 $866.4 Total loans (1) 837.9 $770.5 $703.6 Total deposits 894.2 Noninterest-bearing deposits 304.3 $613.8 $563.5 Tangible shareholders' equity (2) 99.9 Profitability Net
Slide 5: A Continuation of BSVN Exceptional Performance
A Continuation of BSVN Exceptional Performance • We continue to produce excellent ROAA and ROATCE, 2.20% and 20.52%, respectively. • We improved upon our excellent efficiency ratio, as highlighted by our low noninterest expense to average assets ratio. Our efficiency ratio dropped from 37.0% at 1Q t
Slide 6: Balance Sheet and Earnings Growth
Balance Sheet and Earnings Growth • Year-to-date, tangible book value per share grew by $1.05, or 10.7% (20.5% annualized). • Balance sheet growth remains strong YOY, highlighted by loan growth of 32.7%, deposit growth of 28.5%, total asset growth of 25.8% and growth in total shareholder equity of 2
Slide 7: Net Interest Margin Strength
Net Interest Margin Strength • Despite the pandemic-induced stress which has significantly reduced deal flow, our net interest margin continues to show strength and outperform our peer group(1). Net Interest Margin 5.87% 5.49% 5.25% 5.35% 5.31% 5.16% 5.14% 1.28% 4.99% 0.71% 0.57% 0.62% 0.59% 4.69% 0
Slide 8: Income Statement as a Percentage of Average Assets
Income Statement as a Percentage of Average Assets 2016 2017 2018 2019 Q1 2020 Peer Group Peer Group Peer Group Peer Group Peer Group Median(1) BSVN Median(1) BSVN Median(1) BSVN Median(1) BSVN(2) Median(1) BSVN(2) Net Interest Income 3.29% 5.07% 3.30% 5.79% 3.42% 5.38% 3.37% 5.28% 3.24% 4.97% Non-I
Slide 9: Excellent Shock-Absorption
Excellent Shock-Absorption Earnings-driven cushion to regulatory minimums illustrated over two years Regulatory Total Shock Minimum Q2 2020 Excess Capital Excess Capital to Absorption Ability Target Capital to Target Ratio Target Ratio Add: PPE Prior to Hitting Reg Ratios Ratios Expressed in %(1) Ex
Slide 10: Stress Test Results
Stress Test Results • Resulted in cumulative loan losses over the DFAST period of $27.5 million, which is 3.69% of loans. • Dividend payout was unaffected and continues to be paid. • Annualized actual ROATCE through 2Q 20 was 20.5%, which declines to approximately 8% for the full year ending 2021. •
Slide 11: Asset Quality
Asset Quality Energy Portfolio as a % of Total Loans 25.6% 18.3% 18.7% • Continued reduction of energy portfolio; 14.4% down from 25.6% of total loans in 2Q 10.7% 2018 to 10.7% of total loans in 2Q 20. Q2 2018 Q4 2018 Q2 2019 Q42019 Q2 2020 • Pandemic-induced stress impact on Nonperforming Assets to
Slide 12: Loan Portfolio Distribution
Loan Portfolio Distribution Gross Loan Portfolio Composition by Purpose Type Agricultural Non- Farmland Agricultural Farmland Consumer $25.00 $24.22 $10.45 3.0% 2.9% PPP Loans 1.2% Hospitality construction $63.97 $17.19 7.6% 2.0% Commercial construction $32.59 3.9% 1-4 family construction $42.60 5.1
Slide 13: Hospitality Loan Portfolio Detail as of 2Q 20
Hospitality Loan Portfolio Detail as of 2Q 20 Hotel Portfolio Exposure by Class • Blue collar portfolio that is better Number Balance as of protected by the “cycle-down” Flag Type of Hotels Q2 2020 effect of a recession. 18 Economy 16 $34.66 Midscale 22 113.69 properties have returned to Upper Midsc
Slide 14: Hospitality Loan Portfolio Detail as of 2Q 20
Hospitality Loan Portfolio Detail as of 2Q 20 Outstanding Metro # Balance Commitment Dallas/Ft. Worth Metro Area 25 $106.05 58.98% $159.09 68.32% Other Texas Metros 9 30.66 17.05% 30.66 13.17% Other 9 43.10 23.97% 43.11 18.51% Grand Total 43 $179.81 100.00% $232.86 100.00% • Concentrated in “Drive-T
Slide 15: Energy Loan Portfolio
Energy Loan Portfolio Energy Portfolio as a % of Total Loans 3.41% 3.06% 2.71% 1.56% Exploration & Mineral / royalty Service Midstream production interest companies Total COVID Number of Modified # of % of Notes Total Loan Modified COVID % of Purpose Code Desc Notes Notes Modified Balances Balances
Slide 16: Energy Portfolio Potential Exposure
Energy Portfolio Potential Exposure Exploration & Production Liquid Guarantor (1), Low decline production with amortizing ability at $30/barrel oil 16% $2.07 15% Hedged Production into 2021; 2 year remaining amortization or less, low loan to value 74% 9.72 Minimal risk Low Decline Production, More t
Slide 17: 1-4 Family Construction as of 2Q 20
1 – 4 Family Construction as of 2Q 20 Homebuilder Loans # of % Homes per $ Committed % Committed Loan Range Homes Range (#) per Range per Range ($) $450M and up 13 4% $9.09 16% $350M to $450M 4 1% 1.48 3% 84% of $250M to $350M 52 18% 14.85 26% exposure $150M to $250M 117 40% 22.83 39% below $150M an
Slide 18: Deposit Composition
Deposit Composition Commentary Deposit Composition as of June 30, 2020 • 84.9% of our loan customers also had a deposit relationship NOW deposits $175.6 with us as of June 30, 2020. 19.6% Noninterest- bearing demand Core Deposits(1) $304.3 34.0% Money Markets • Total organic core deposit growth YOY
Slide 19: Appendix
Appendix 18
Slide 20: 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 21: Bank7 Corp. Financials
Bank7 Corp. Financials As of or for the Six Months Ended June 30, For the Year Ended December 31, 2020 2019 2019 2019 2018 2017 2016 (Dollars in thousands, except per share data) (3) Pro Forma Income Statement Data: Total interest income $ 27,064 $ 25,643 $ 51,709 $ 46,800 $ 42,870 $ 33,153 Total in
Slide 22: Bank7 Corp. Financials
Bank7 Corp. Financials As of or for the Six (Dollars in thousands, except per share data) Months Ended June 30, For the Year Ended December 31, Performance Ratios: 2020 2019 2019 2019 2018 2017 2016 (5) Pro Forma Return on average: Assets (1) 2.20% 2.68% 1.03% 2.51% 2.75 2.17 1.78 Tangible common eq
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations As of or for the Six Months Ended June 30, For the Year Ended December 31, 2020 2019 2019 2018 2017 2016 (Dollars in thousands, except per share data) Tangible shareholders' equity Total shareholders equity $ 101,619 $ 99,037 $ 100,126 $ 88,466 $ 69,176 $ 55,136 Goodwill and
Slide 24: Important Presentation Information
Important Presentation Information The 2020 Dodd-Frank Act Annual Stress Test Results Disclosure (the “Stress Test Results”) included herein has not been prepared under accounting principles generally accepted in the United States of America (“GAAP”). The Stress Test Results present certain forward-
Slide 25: 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