Bank7 Corp. · NASDAQ:BSVN
Bank7 — Q1 2020 Earnings Presentation
22 slides from Bank7's earnings presentation, Apr 30, 2020
Slide 1: 1Q 2020 Earnings Release
1Q 2020 EARNINGS RELEASE April 30, 2020
Slide 2: Corporate Overview
Corporate Overview NASDAQ: BSVN • Historically Ranked as One of the Top Performing Community Banks in the United States.(1) • Track Record of Strong Profitability and Expense Control. • Intense Focus on Underwriting and Asset Quality. • Scalable and Consistently Growing Platform. • A company that pr
Slide 3: First Quarter Accomplishments
First Quarter Accomplishments • Ended the quarter with $974.4 million in total assets, $785.7 million in total loans, and $871.0 million in total deposits. All-time Highs & • Changes from Q1 2019 to Q1 2020: - Total assets increased $187.1 million, or 23.8% Robust Growth - Total loans increased $199
Slide 4: Income Statement as a Percentage of Average Assets
Income Statement as a Percentage of Average Assets 2016 2017 2018 2019 Peer Group Peer Group Peer Group Peer Group Median(1) BSVN Median(1) BSVN Median(1) BSVN Median(1) BSVN(2) Net Interest Income 3.29% 5.07% 3.30% 5.79% 3.42% 5.38% 3.37% 5.28% Non-Interest Income 0.75% 0.28% 0.72% 0.22% 0.66% 0.18
Slide 5: Shock-Absorption
Shock-Absorption Ability to withstand pandemic-induced economic stress illustrated over two years Less: $0.10 Total Shock Regulatory Q1 2020 Excess Capital Excess Capital to Add: Pre-Tax Pre- quarterly Absorption Ability Minimum Capital to Target Ratio Target Ratio Provision Income dividend over Pri
Slide 6: Bank7 Corp. Key Statistics
Bank7 Corp. Key Statistics For the Three Months Ended Total Assets March 31, 2020 $974.4 Balance Sheet $866.4 Total assets $974.4 Total loans 785.7 $770.5 $703.6 Total deposits 871.0 $613.8 Noninterest-bearing deposits 254.7 $563.5 Tangible shareholders' equity (1) 95.9 Profitability Net Income $5.1
Slide 7: A Continuation of BSVN Exceptional Performance
A Continuation of BSVN Exceptional Performance • We continue to produce excellent returns on average assets (ROAA) and also on average tangible common equity (ROATCE). Annualized ROAA and ROATCE for the quarter were 2.35% and 20.5%, respectively. • We have maintained our excellent efficiency ratio,
Slide 8: Balance Sheet and Earnings Growth
Balance Sheet and Earnings Growth • For Q1, tangible book value per share grew by $0.57, or 5.8% (23.4% annualized). • Balance sheet growth remains strong YOY, highlighted by 33.9% of loan growth, deposit growth of 26.8%, 23.8% total asset growth and 4.2% growth in total shareholders’ equity. • We g
Slide 9: Net Interest Margin
Net Interest Margin • Net interest margin excluding loan fee income continues to remain well within our historical range. Net Interest Margin 5.87% 5.49% 5.25% 5.35% 5.31% 5.16% 1.28% 0.71% 0.57% 0.59% 0.62% 0.79% 4.78% 4.78% 4.72% 4.63% 4.59% 4.37% 2015 2016 2017 2018 2019 Q1 2020 Net Interest Marg
Slide 10: Asset Quality
Asset Quality Nonperforming Assets to Loans and OREO 0.47% 0.45% 0.45% 0.42% • Asset quality remained strong, our 0.35% quality underwriting and disciplined lending practices continued to produce 2016 2017 2018 2019 Q1 2020 low levels of nonperforming assets. Allowance for Loan Losses to Total Loans
Slide 11: Diversified Loan Portfolio
Diversified Loan Portfolio Gross Loan Portfolio Composition by Purpose Type Agricultural Non- Agricultural Farmland Farmland $25.00 $25.94 3.2% Consumer $10.90 3.3% Hospitality construction 1.4% $14.88 1.9% Commercial construction $32.79 Commercial and 4.2% industrial $227.06 28.8% 1-4 family constr
Slide 12: Hospitality Loan Portfolio Detail
Hospitality Loan Portfolio Detail Hotel Portfolio Exposure by Class • Blue collar portfolio that is better Number Balance as of protected by the “cycle-down” Flag Type of Hotels Q1 2020 Economy 16 $34.28 effect of a recession. Midscale 22 111.43 Upper Midscale 5 29.82 • Experienced owner/operators w
Slide 13: Hospitality Loan Portfolio Detail
Hospitality Loan Portfolio Detail Outstanding Metro # Balance Commitment Dallas/Ft. Worth Metro Area 25 $102.44 58.36% $162.80 69.02% Other Texas Metros 9 30.26 17.24% 30.26 12.83% Other 9 42.83 24.40% 42.83 18.16% Grand Total 43 $175.53 100.00% $235.89 100.00% • Concentrated in “Drive-To” markets w
Slide 14: Energy Portfolio Exposure
Energy Portfolio Exposure Exploration & Production Liquid Guarantor (1), Low decline production with amortizing ability at $30/barrel oil 23% $3.11 Hedged Production into 2021; 2 year remaining amortization or less, low loan to value 61% 8.36 Minimal risk Low Decline Production, More than half of th
Slide 15: 1-4 Family Construction
1 – 4 Family Construction Homebuilder Loans # of % Homes per $ Committed % Committed Loan Range Homes Range (#) per Range per Range ($) $450M and up 15 5% $10.00 17% $350M to $450M 8 3% 3.00 5% 83% of $250M to $350M 36 12% 10.50 17% exposure $150M to $250M 110 36% 21.70 36% below $150M and Under 135
Slide 16: Deposit Composition
Deposit Composition Commentary Deposit Composition as of March 31, 2020 NOW deposits $169.6 • 85.1% of our loan customers also had a deposit relationship 19.5% with us as of March 31, 2020. Core Deposits(1) Noninterest- Money Markets bearing demand $141.1 $254.7 16.2% • Total organic core deposit gr
Slide 17: Appendix
IBAN/] Appendix
Slide 18: 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 19: Bank7 Corp. Financials
Bank7 Corp. Financials As of or for the Three Months Ended March 31, 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 $ 13,507 $ 12,577 $ 51,709 $ 46,800 $ 42,870 $ 33,153 Total
Slide 20: Bank7 Corp. Financials
Bank7 Corp. Financials As of or for the Three (Dollars in thousands, except per share data) Months Ended March 31, For the Year Ended December 31, Performance Ratios: 2020 2019 2019 2019 2018 2017 2016 Pro Forma(5) Return on average: Assets – Pre-tax 3.11% 3.67% 1.88% 3.36% 3.53% 3.62% 2.86% Assets
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations As of or for the Three Months Ended March 31, 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 $ 97,616 $ 93,753 $ 100,126 $ 88,466 $ 69,176 $ 55,136 Goodwill a
Slide 22: 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 i