Bank7 Corp. · NASDAQ:BSVN
Bank7 — Q3 2024 Earnings Presentation
28 slides from Bank7's earnings presentation, Oct 11, 2024
Slide 1: Q3 2024 Earnings Release
Q3 2024 Earnings Release October 11, 2024 0
Slide 2: BSVN – Corporate Overview
BSVN – Corporate Overview Earnings Release: Q3 2024 Consistently ranked by S & P Global Market Intelligence as one of the Top Performing Community Banks in the United States Quarterly Year-to-Date Q3 2024 Q2 2024 % Change Q3 2024 Q3 2023 % Change Total assets $ 1,740,442 $ 1,682,913 3.4% $ 1,740,442
Slide 3: Q3 Overview
Q3 Overview Earnings Release: Q3 2024 Record EPS & Reliable Net Interest Margin Asset Quality & CRE Q3 EPS of $1.24, a 0.81% increase from Q2 2024; excluding NPLs to Total Loans of 0.54% net income from oil and gas(1), core banking EPS was $1.12 Diverse CRE portfolio primarily located in the D
Slide 4: Strength in Core Earnings
Strength in Core Earnings Earnings Release: Q3 2024 PPE(1) $70.0 ■ Strong PPE: $58.4 10.44% increase $60.0 ■ Quarterly PPE of $15.50 million, an increase of 1.61% $50.0 $43.9 $45.6 $41.3 as compared to quarterly Q2 2024 $40.0 $35.1 $31.2 1.61% increase $30.0 $26.8 ■ YTD PPE of $45.64 million, an inc
Slide 5: Consistently Outperforming our Peer Group
Consistently Outperforming our Peer Group Earnings Release: Q3 2024 PPE to Average Assets vs Peers 4.00% 3.50% 3.61% 3.00% 3.44% 3.46% 3.29% 2.50% 2.99% 2.00% 1.50% 1.00% 1.49% 1.43% 1.45% 1.17% 1.03% 0.50% 0.00% 2020 2021 2022 2023 Q2 2024 Peers BSVN Income Statement as a Percentage of Average Asse
Slide 6: Consistent Top Performer
Consistent Top Performer Earnings Release: Q3 2024 Return on Average Tangible Common Equity (1) Return on Average Assets (1) 5 year average: 20.5% 5 year average: 2.1% 30.00% 3.00% 2.74% 2.73% 26.36% 24.85% 2.51% 23.92% 25.00% 2.50% 2.21% 20.13% Pro 2.03% 2.02% 20.90% Forma 20.00% 19.14% 18.57% 2.00
Slide 7: Reliable and Rapid Capital Compounder
Reliable and Rapid Capital Compounder Earnings Release: Q3 2024 Tangible Book Value Per Share Diluted Earnings Per Share CAGR since 2018: 17.0% $25.00 $4.00 $20.85 $3.50 $3.22 $3.05 $20.00 $17.49 $3.00 $2.55 $14.69 $2.50 $15.00 $12.93 $1.96 $2.05 $11.69 $2.00 0.81% Increase $9.78 Pro $10.00 $8.49 Fo
Slide 8: BSVN Compared to All Major Exchange Traded Banks
BSVN Compared to All Major Exchange Traded Banks Earnings Release: Q3 2024 BSVN’s TBVPS Since FYE 2018 $20.00 CAGR since 2018: 15.6% $17.49 Public Banks Median CAGR: 5.6%(1) $14.69 $15.00 $12.93 $11.69 $9.78 $10.00 $8.49 $5.00 $0.00 2018Y 2019Y 2020Y 2021Y 2022Y 2023Y Total Shareholder Return Since
Slide 9: Consistent Net Interest Margin
Consistent Net Interest Margin Earnings Release: Q3 2024 ■ Net interest margin remains within our historical range due to disciplined loan pricing, a healthy amount of non-interest bearing deposits, and our asset sensitive balance sheet ■ The 50 basis point (bps) rate cut during the quarter had a ne
Slide 10: We Achieve a Steady Spread thru Various Rate Cycles
We Achieve a Steady Spread thru Various Rate Cycles Earnings Release: Q3 2024 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2016 2017 2018 2019 2020 2021 2022 2023 Q3 2024 Yield on Loans Cost of Funds BSVN Spread 5 Yr Treasury Yield 10 Yr Treasury Yield 9
Slide 11: Asset Sensitivity Repricing and Liquidity
Asset Sensitivity Repricing and Liquidity Earnings Release: Q3 2024 Asset Sensitivity Repricing Schedule < 1 year 1 to 2 years 2 to 3 years > 3 years Total Earning Assets: Cash and cash equivalents, and interest-bearing time deposits $ 195,435 $ - $ - $ - $ 195,435 (1) Gross Loans 1,197,731 78,418 7
Slide 12: Deposit Composition
Deposit Composition Earnings Release: Q3 2024 CAGR since 2019: 13.0% $1,591.4 $1,524.2 $1,431.4 $1,217.5 $905.5 69.7% $757.5 69.2% 78.8% 69.9% 72.8% 71.1% 30.1% 30.7% 30.3% 28.9% 27.2% 21.2% 1 2019 2020 2021 2022 2023 Q3 2024 Noninterest-bearing deposits Interest-bearing deposits Deposit Composition
Slide 13: Loan Portfolio Trends – Selected Categories
Loan Portfolio Trends – Selected Categories Earnings Release: Q3 2024 Loan Portfolio Trends CAGR Since 2019: 13.2% $1,500 $1,440.0 $1,364.0 $1,273.6 $172.2 12.0% $1,300 $190.5 $182.8 $1,100 $1,031.0 $375.4 26.1% $334.6 $116.7 $839.1 $327.6 $900 $708.6 $102.0 $245.1 $293.7 $700 $298.5 20.4% $102.1 $2
Slide 14: Loan Portfolio Distribution
Loan Portfolio Distribution Earnings Release: Q3 2024 Consumer $18.7 / 1.3% Agricultural Non-Farmland $22.9 / 1.6% Agricultural Farmland $46.2 / 3.2% Commercial and industrial Hospitality construction $375.4 / 26.1% $8.1 / 0.6% Commercial construction $92.6 / 6.4% 1-4 family construction $52.3 / 3.6
Slide 15: Diverse CRE Portfolio with Very Low Historical Losses
Diverse CRE Portfolio with Very Low Historical Losses Earnings Release: Q3 2024 1-4 Family - Commercial $109.8 / 13.7% ■ Diverse commercial real estate lending Multifamily $18.4 / 2.3% activity in Texas and Oklahoma with an Retail emphasis in the DFW, Oklahoma City, and $71.1 / 8.8% Tulsa metros Off
Slide 16: Hospitality Loan Portfolio – A Source of Strength
Hospitality Loan Portfolio – A Source of Strength Earnings Release: Q3 2024 Hotel Portfolio by Class ■ No historical NCOs in the hospitality segment Midscale $157.71 / 53.7% ■ Blue collar portfolio that is well-protected by the “cycle-down” effect of a recession Upper Midscale $56.77 / 19.3% ■ Geogr
Slide 17: Strategic Growth in Dynamic Markets
Strategic Growth in Dynamic Markets Earnings Release: Q3 2024 Total Assets CAGR Since 2014: 14.2% $1,771.7 $1,740.4 $1,800.0 $1,584.2 $1,600.0 $1,400.0 $1,350.5 $1,200.0 $1,016.7 $1,000.0 $866.4 $770.5 $800.0 $703.6 $613.8 $563.5 $600.0 $479.5 $400.0 $200.0 $- 2014 2015 2016 2017 2018 2019 2020 2021
Slide 18: Earnings-driven Capital Shock-absorption
Earnings-driven Capital Shock-absorption Earnings Release: Q3 2024 Earnings-driven cushion far exceeds regulatory capital minimums as illustrated over a two-year period, consistent with DFAST parameters(1) Total Shock Absorption Regulatory Minimum Q3 2024 Capital Excess Capital to Target Excess Capi
Slide 19: Appendix
Appendix 18
Slide 20: Bank7 Corp. Financials
Bank7 Corp. Financials Earnings Release: Q3 2024 For the Three Months Ended For the Year Ended December 31 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Sep 30, 2023 2023 2022 2021 2020 2019 2019 (Do llars in tho usands, except per share data) Pro Forma(3) INCOME STATEMENT DATA Total interest income $ 33,4
Slide 21: Bank7 Corp. Performance Ratios
Bank7 Corp. Performance Ratios Earnings Release: Q3 2024 For the Three Months Ended For the Year Ended December 31 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Sep 30, 2023 2023 2022 2021 2020 2019 2019 (Do llars in tho usands, except per share data) Pro Forma(5) RETURN ON AVERAGE(1) Assets 2.73% 2.74% 2.
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Earnings Release: Q3 2024 For the Three Months Ended For the Year Ended December 31 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Sep 30, 2023 2023 2022 2021 2020 2019 (Do llars in tho usands, except per share data) TANGIBLE SHAREHOLDERS' EQUITY Total shareholders equity $ 204,162
Slide 23: Non-GAAP Reconciliations -- Continued
Non-GAAP Reconciliations -- Continued Earnings Release: Q3 2024 For the Three Months Ended For the Year Ended December 31 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Sep 30, 2023 2023 2022 2021 2020 2019 (Do llars in tho usands, except per share data) PRE-PROVISION PRE-TAX EARNINGS Net Income $ 11,777 $
Slide 24: Oil & Gas – Cash Flow Recap
Oil & Gas – Cash Flow Recap Earnings Release: Q3 2024 (Do llars in tho usands, except per share data) OIL AND GAS ASSET INVESTMENT Initial cash outlay (in Q4 2023) $ (16,800) Gross cash receipts: Q4 2023 2,195 Q1 2024 2,678 Q2 2024 1,949 Q3 2024 2,112 Cumulative gross cash receipts $ 8,934 % Recover
Slide 25: Investment Portfolio
Investment Portfolio Earnings Release: Q3 2024 Available-for-Sale Securities Portfolio Municipal - Tax Exempt $14.72 / 22.6% Municipal - Taxable $7.43 / 11.4% U.S. Treasuries $5.47 / 8.4% Corporate $4.62 / 7.1% ■ Weighted Average Duration: 3.3 Years U.S. Federal Agencies $0.07 / 0.1% ■ Book Yield: 2
Slide 26: 2019 Pro Forma Net Income Reconciliation
2019 Pro Forma Net Income Reconciliation Earnings Release: Q3 2024 On September 5, 2019, the largest shareholders, Haines Family Trusts, contributed approximately 6.5% of their shares (656,925 For the Year shares) to the Company. Subsequently, the Company Ended: (Do llars in tho usands) Dec. 31, 201
Slide 27: Legal Information and Distribution
Legal Information and Distribution Earnings Release: Q3 2024 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
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