BSVN 8-K
Bank7 Corp. (BSVN)
8-K
2022-04-26
For: 2022-04-26
View Original
Added on
April 09, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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(Address of principal executive offices) (Zip Code)
(405 ) 810-8600
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the
Securities Exchange Act of 1934 (17 CFR §240.12b-2).
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Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Results of Operations and Financial Condition
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| Item 7.01 |
Regulation FD Disclosure
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On April 26, 2022, Bank7 Corp. (the “Company”), the holding company for Bank7, issued a
press release announcing its results of operation and financial condition for the quarter ended March 31, 2022. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.
The Company is conducting a conference call on April 26, 2022 at 3:00 pm CST to discuss its fourth quarter and fiscal year-end financial results. A copy of the
presentation slides to be used during the earnings call is attached to this Current Report on Form 8-K as Exhibit 99.2 and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed
“filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, or the
Exchange Act except as shall be expressly set forth by specific reference in such filing.
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Item 9.01
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Financial Statements and Exhibits
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(d)
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Exhibits.
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The following exhibits are filed herewith:
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Item
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Description
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Press Release dated April 26, 2022
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First Quarter 2022 Investor Presentation
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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BANK7 CORP.
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Date: April 26, 2022
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By:
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/s/ Kelly J. Harris
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Kelly J. Harris
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Executive Vice President and Chief Financial Officer
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Exhibit 99.1
FOR IMMEDIATE RELEASE: Bank7 Corp. Announces Q1 2022 Earnings
Oklahoma City, April 26, 2022 – Bank7 Corp. (NASDAQ: BSVN) ("the Company"), the parent company of Oklahoma City-based Bank7 (the "Bank"), today reported unaudited results
for the fiscal quarter ended March 31, 2022. “We are pleased with the strength of our core earnings, as evidenced by the healthy growth in our pre-tax, pre-provision earnings (PPE). Our PPE is best in class and consistently exceeds our peers. We
continue to benefit from our dynamic geographic markets, and we are also extremely asset sensitive, which positions us well for the remainder of 2022,” said Thomas L. Travis, President and CEO of the Company.
Three months ended March 31, 2022 compared to three months ended March 31, 2021
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Net income of $6.2 million compared to $5.1 million, an increase of 21.2%
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Earnings per share of $0.68 compared to $0.56, an increase of 21.5%
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Total assets of $1.4 billion compared to $1.0 billion, an increase of 35.9%
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Total loans of $1.1 billion compared to $861.4 million, an increase of 23.3%
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Total deposits of $1.3 billion compared to $929 million, an increase of 38.1%
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Both the Bank’s and the Company’s capital levels continue to be significantly above the minimum levels required to be designated as “well-capitalized” for regulatory
purposes. On March 31, 2022, the Bank’s Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 9.28%, 11.56%, and 12.56%, respectively. On March 31, 2022, on a consolidated basis, the Company’s Tier 1
leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 9.27%, 11.54%, and 12.54%, respectively. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by
bank regulators.
Bank7 Corp.
Consolidated Balance Sheets
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Assets
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March 31, 2022
(unaudited)
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December 31, 2021
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Cash and due from banks
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$
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126,275
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$
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195,359
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Federal funds sold
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8,088
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9,493
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Cash and cash equivalents
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134,363
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204,852
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Interest-bearing time deposits in other banks
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2,241
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3,237
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Available-for-sale debt securities
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198,356
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84,808
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Loans, net of allowance for loan losses of $10,599 and $10,316 at March 31, 2022 and December 31, 2021, respectively
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1,051,222
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1,018,085
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Loans held for sale, at fair value
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597
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464
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Premises and equipment, net
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13,775
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17,257
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Nonmarketable equity securities
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1,195
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1,202
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Core deposit intangibles
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1,565
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1,643
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Goodwill
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8,807
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8,479
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Interest receivable and other assets
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9,111
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10,522
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Total assets
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$
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1,421,232
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$
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1,350,549
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Liabilities and Shareholders’ Equity
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Deposits
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Noninterest-bearing
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$
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420,972
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$
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366,705
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Interest-bearing
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862,307
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850,766
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Total deposits
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1,283,279
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1,217,471
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Income taxes payable
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2,610
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-
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Interest payable and other liabilities
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6,695
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5,670
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Total liabilities
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1,292,584
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1,223,141
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Shareholders’ equity
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Common stock, $0.01 par value; 50,000,000 shares authorized; shares issued and outstanding: 9,094,468 and 9,071,417 at March 31, 2022 and December 31, 2021 respectively
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91
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91
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Additional paid-in capital
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94,310
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94,024
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Retained earnings
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38,242
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33,149
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Accumulated other comprehensive income
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(3,995
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144
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Total shareholders’ equity
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128,648
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127,408
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Total liabilities and shareholders’ equity
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$
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1,421,232
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$
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1,350,549
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Bank7 Corp.
Consolidated Statements of Income
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Unaudited as of
Three Months Ended
March 31,
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2022
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2021
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Interest Income
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Loans, including fees
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$
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14,377
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$
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13,094
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Interest-bearing time deposits in other banks
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16
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68
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Debt securities, taxable
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364
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-
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Debt securities, tax-exempt
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98
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-
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Other interest and dividend income
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70
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26
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Total interest income
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14,925
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13,188
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Interest Expense
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Deposits
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717
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875
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Total interest expense
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717
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875
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Net Interest Income
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14,208
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12,313
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Provision for Loan Losses
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276
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1,275
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Net Interest Income After Provision for Loan Losses
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13,932
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11,038
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Noninterest Income
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Secondary market income
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166
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14
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Loss on sales of available-for-sale debt securities
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(127
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-
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Service charges on deposit accounts
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249
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120
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Other
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387
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203
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Total noninterest income
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675
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337
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Noninterest Expense
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Salaries and employee benefits
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4,026
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2,790
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Furniture and equipment
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358
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202
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Occupancy
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551
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472
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Data and item processing
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387
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279
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Accounting, marketing and legal fees
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233
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148
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Regulatory assessments
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196
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141
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Advertising and public relations
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110
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34
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Travel, lodging and entertainment
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48
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89
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Other
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511
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390
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Total noninterest expense
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6,420
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4,545
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Income Before Taxes
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8,187
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6,830
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Income tax expense
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2,003
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1,726
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Net Income
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$
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6,184
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$
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5,104
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Earnings per common share - basic
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$
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0.68
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$
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0.56
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Earnings per common share - diluted
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0.68
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0.56
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Weighted average common shares outstanding - basic
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9,088,975
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9,049,007
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Weighted average common shares outstanding - diluted
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9,133,116
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9,058,685
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Other Comprehensive Income
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Unrealized losses on securities, net of tax benefit of $1.5 million
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$
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(3,995
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)
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$
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-
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Reclassification adjustment for realized loss included in net income
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(127
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)
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-
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Other comprehensive gain, net of tax benefit of $1.5 million
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$
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(4,122
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)
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$
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-
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Comprehensive Income
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$
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2,062
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$
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5,104
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Net Interest Margin
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For the Three Months Ended March 31,
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2022
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2021
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Average
Balance
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Interest
Income/
Expense
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Average
Yield/
Rate
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Average
Balance
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Interest
Income/
Expense
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Average
Yield/
Rate
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(Dollars in thousands)
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Interest-Earning Assets:
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Short-term investments
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$
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187,672
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$
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84
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0.18
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%
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$
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125,739
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$
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92
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0.30
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%
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Investment securities, taxable-equivalent
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87,886
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366
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1.69
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1,172
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2
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0.69
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23,969
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99
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1.68
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-
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-
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-
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Loans held for sale
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487
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-
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-
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378
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-
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-
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Total loans(1)
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1,003,890
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14,417
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5.82
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847,498
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13,094
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6.27
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Total interest-earning assets
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1,303,904
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14,966
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4.65
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974,787
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13,188
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5.49
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Noninterest-earning assets
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24,342
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7,103
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Total assets
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$
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1,328,246
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$
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981,890
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Funding sources:
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Interest-bearing liabilities:
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Deposits:
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Transaction accounts
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$
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636,446
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455
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0.29
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%
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$
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419,991
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362
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0.35
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%
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Time deposits
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169,602
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259
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0.62
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205,557
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513
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1.01
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Total interest-bearing deposits
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806,048
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714
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0.36
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625,548
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875
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0.57
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Total interest-bearing liabilities
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806,048
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714
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0.36
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625,548
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875
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0.57
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Noninterest-bearing liabilities:
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Noninterest-bearing deposits
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$
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385,664
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243,290
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Other noninterest-bearing liabilities
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6,301
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4,193
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Total noninterest-bearing liabilities
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391,965
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247,483
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Shareholders' equity
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130,233
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108,859
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Total liabilities and shareholders' equity
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$
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1,328,246
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$
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981,890
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Net interest income
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$
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14,252
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$
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12,313
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Net interest spread
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4.30
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%
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4.92
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%
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Net interest margin
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4.43
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%
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5.12
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%
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Nonaccrual loans are included in total loans
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About Bank7 Corp.
We are Bank7 Corp., a bank holding company headquartered in Oklahoma City, Oklahoma. Through our wholly-owned subsidiary, Bank7, we operate twelve
locations in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area and Kansas. We are focused on serving business owners and entrepreneurs by delivering fast, consistent and well-designed loan and deposit products to meet their financing needs. We
intend to grow organically by selectively opening additional branches in our target markets as well as pursue strategic acquisitions.
Conference Call
Bank7 Corp. has scheduled a conference call to discuss its first quarter results, which will be broadcast live over the Internet, on Tuesday, April 26, 2022 at 3:00 p.m.
central standard time. To participate in the call, dial 1-888-348-6421, or access it live over the Internet at https://app.webinar.net/DLPzBJ2Bd7r. For those not able to participate in the live
call, an archive of the webcast will be available at https://app.webinar.net/DLPzBJ2Bd7r shortly after the call for 1 year.
Cautionary Statements Regarding Forward-Looking Information
This communication contains a number of forward-looking statements. These forward-looking statements reflect Bank7 Corp.’s current views with respect to, among other
things, future events and Bank7 Corp.’s financial performance. Any statements about Bank7 Corp.’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be
forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,”
“ongoing,” “expects,” “intends” and similar words or phrases. Any or all of the forward-looking statements in (or conveyed orally regarding) this presentation may turn out to be inaccurate. The inclusion of or reference to forward-looking information
in this presentation should not be regarded as a representation by Bank7 Corp. or any other person that the future plans, estimates or expectations contemplated by Bank7 Corp. will be achieved.
These forward-looking statements are subject to significant uncertainties because they are based upon: the amount and timing of future changes in interest rates, market
behavior, and other economic conditions; future laws, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters. These other matters include, among other things, the impact of
COVID-19 on the United States economy and our operations, the direct and indirect effect of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators. Bank7 Corp. has
based these forward-looking statements largely on its current expectations and projections about future events and financial trends that Bank7 Corp. believes may affect its financial condition, results of operations, business strategy and financial
needs. Bank7 Corp.’s actual results could differ materially from those anticipated in such forward-looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. If one or more events related to these or other
risks or uncertainties materialize, or if Bank7 Corp.’s underlying assumptions prove to be incorrect, actual results may differ materially from what Bank7 Corp. anticipates. You are cautioned not to place undue reliance on forward-looking statements.
Further, any forward-looking statement speaks only as of the date on which it is made and Bank7 Corp. undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement
is made or to reflect the occurrence of unanticipated events, except as may be required by law. All forward-looking statements herein are qualified by these cautionary statements.
Contact:
Thomas Travis
President & CEO
(405) 810-8600
Exhibit 99.2
BSVN Q1 2022 EARNINGS RELEASE April 26, 2022
1 BSVN – Corporate Overview All data as of March 31, 2022, unless indicated otherwise. (1) Core loans
is a non-GAAP financial measure and is defined as total loans less PPP loans of $14.2 and $64.7 million for March 31, 2022 and 2021 respectively Positioned in dynamic markets, with a commercial banking emphasis that delivers services via a
branch-lite model Experienced and talented bankers focused on high-touch personalized service Disciplined credit culture that adheres to a robust risk management framework resulting in excellent credit quality and a history of low loan
losses Shareholder alignment due to 59% insider ownership Continued focus on organic growth in our geographic footprint, while pursuing strategic acquisitions Consistently ranked by S & P Global Market Intelligence as one of the Top
Performing Community Banks in the United States
2 Q1 2022 Overview On a YoY Basis (Q1 2022 vs. Q1 2021) Total loans increased $200.41 million,
reaching $1.06 billion, a 23.27% increase. $110.22 million of the growth was due to loans acquired from Cornerstone Bank on December 9, 2021 Total assets increased $375.16 million, ending at $1.42 billion, a 35.86% increase. $312.25 million of
the growth was due to assets acquired from Cornerstone Bank Total deposits increased $354.25 million, reaching $1.28 billion, a 38.13% increase. $283.56 million of the growth was due to deposits acquired from Cornerstone Bank All data as of
March 31 ,2022, unless indicated otherwise. ROATCE annualized for the three months ended March 31, 2022 and 2021. EPS for Q1 2022 of $0.68, an increase of $0.12 per share, or 21.50% compared to $0.56 at Q1 2021 Return on average tangible
common equity of 20.87%, an increase of 8.16% compared to 19.29% at Q1 2021 Consistent Balance Sheet Growth Impressive EPS Growth and Strong Shareholder Returns
2.51% Pro Forma Pro Forma Reliable Top Performer Return on Average Assets (1)(2) Return on Average
Tangible Common Equity (1) (2) Dollars are in millions Financial data is as of or for the three months ended March 31, 2022 Profitability metrics are tax-adjusted as if the Company were a C Corporation at the estimated tax rates for the
respective periods. Pro Forma YTD ROAA, ROATCE and efficiency ratio are non-GAAP financial measures, see Appendix for reconciliation to the most comparable GAAP measures for these metrics. Efficiency Ratio (2) On a YoY basis, our 20.9%
ROATCE represents an 8.16% increase compared to Q1 2021 As expected, our Q4 acquisition caused a temporary decline in our ROAA and a slight increase in our efficiency ratio. We anticipate a return to our historical ranges in the latter half of
2022 4 6-year average: 2.24% 6-year average: 21.9% 38.3% 20.9% Pro Forma
Dollars are in millions. Financial data is as of or for the twelve months ended December 31 of each
respective year and as of and for the three months ended March 31, 2021 and 2022. Pro Forma noninterest expense to average assets is a non-GAAP financial measure. See appendix for reconciliation to their most comparable GAAP measure. Pro
Forma 2019 is a non-GAAP financial measure which adds back the one-time, extraordinary compensation expense related to the non-cash executive stock transaction that took place during the period. See 2019 Pro Forma Net Income reconciliation
table for detailed calculation of this measure. 5.98% increase YoY Robust and Consistent Organic Growth PPE(1) Total Assets 4 $26.8 Pro Forma PPE grew 5.98% YoY - Our high level of PPE is achieved in part because of our strategy of
having fewer, but better, team members who excel at providing services and solutions utilizing our technology and processes, delivered through our branch-lite model Maximizing Our Employee Base(1) 3.56% Actual Pro Forma CAGR Since 2016:
17.3%
5 Proven Strong Shareholder Returns Tangible Book Value Per Share Dollars are in thousands, except for
per share data Pro Forma 2019 is a non-GAAP financial measure which adds back the one-time, extraordinary compensation expense related to the non-cash executive stock transaction that took place during the period. See 2019 Pro Forma Net Income
reconciliation table for detailed calculation of this measure. CAGR since 2018 = 14% Earnings Per Share (1) $ 0.81 Pro Forma 21.5% increase YoY
Investment Portfolio Available-for-Sale Securities Portfolio Dollars are in millions. (1) All of our
mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities. 6 Weighted Average Duration : 3.17 Years Book Yield: 1.76% (1)
Well Positioned for a Rising Rate Environment Loan Portfolio Repricing Reinforces Benefit of Asset
Sensitivity Dollars are in millions. Financial data is as of or for the three months ended March 31, 2022 Fixed rate loans are defined as loans that reprice greater than 1 year 7 (1) ($774.5m are daily floaters)
Net Interest Margin Financial data is as of or for the three months ended March 31, 2022 and as of or
for the twelve months ended of each respective year. Net interest margin (excluding loan fee income) is a non-GAAP financial measure, see Appendix for reconciliation to the most comparable GAAP measure for this metric. Net Interest
Margin Net interest margin decline driven by investment portfolio acquired in December 2021 Despite the slightly lower NIM, our shareholder returns remain best in class PPP loan fee income recognized during the quarter totaled $111,000,
with $157,000 remaining to be recognized; PPP loan fees recognized during the first quarter of 2021 totaled $830,000, with $757,000 remaining to be recognized 8
9 Allowance for Loan Losses to Total Loans Asset Quality (1) “Total Loans” excludes $44.9 million,
$18.7 million and $14.2 million in PPP loans for YE 2020 , 2021 and Q1 2022, respectively. With PPP loans included, ratio is 1.15%, 1.00% and 1.00%, respectively. (2) “Total Loans” for 2021 and Q1 2022 includes acquired Cornerstone loans of
$115 million $110 million marked to market, respectively. With Cornerstone loans and PPP loans excluded, ratio is 1.15% and 1.13% for YE 2021 and Q1 2022, respectively. (1) Energy Portfolio as a % of Total Loans (1) Nonperforming Assets to
Total Loans (2) Continued broadening and deepening of the loan portfolio with less dependency on energy and hospitality lending activity Although we intentionally reduced our energy loan portfolio as a percentage of total loans, we remain
active in the energy space with a robust deal pipeline Continued improvement in NPA levels after peaking in Q3 2020. Currently at 0.91% and concentrated 70% in a single credit ALLL level remains acceptable as NPA levels have quickly reduced
after peaking in 2020 (2)
Dollars are in millions Energy Portfolio Potential Exposure 10
Hospitality Loan Portfolio Detail 11 Blue collar portfolio that is well-protected by the “cycle-down”
effect of a recession Loans personally guaranteed by experienced owner/operators with decades of history that spans multiple recessions Geographically concentrated in TX (81%) and other markets with few remaining COVID
restrictions Diversified lending to many reputable brands serving mostly low to moderate price points Buy, sell, and refinance activity has returned to the hospitality segment with 3 portfolio property sales and 1 refinance which paid off
during Q1 2022 Dollars are in millions. Hotel Portfolio Exposure by Class Hotel Portfolio Exposure by Flag
12 Hospitality Loan Portfolio Detail Portfolio Metrics – 35 Operating Properties Dollars are in
millions except per room data. Data as of March 31, 2022. (1) per Source Strategies Inc. 2nd , 3rd , and 4th Quarter Factbook Significant rebound in revenue throughout Texas with Q2, Q3, and Q4 2021 hospitality revenue exceeding Q2, Q3, and
Q4 2019(1) Concentrated primarily in “Drive-To” markets in the Dallas/Fort Worth metropolitan area No exposure to towns or cities that are heavily dependent on the energy space, or that are “gateway” cities that depend on airline
traffic Consistent underwriting fundamentals with disciplined equity requirements, debt coverage ratio requirements, personal recourse, and rapid amortization
13 Income Statement as a Percentage of Average Assets Dollars are in thousands Peer group is defined
as exchange-traded banks nationwide with assets between $500mm-$5bn (162 banks); Source: S&P Global Market Intelligence. Excludes one-time, non-cash executive stock transfer compensation expense of $11.8 million. As of Q1 2022, the latest
data available. (3) Peer Analysis : PPE to Average Assets
14 Earnings-driven cushion far exceeds regulatory capital minimums as illustrated over a two-year
period, consistent with DFAST parameters(1) Dollars are in thousands The above assumes no cash dividends and is simply an illustration and should not be considered a projection or forward-looking guidance of any kind. DFAST = Dodd-Frank Act
Stress Test. Excess capital to target ratio expressed in % is the difference between the actual ratio and regulatory minimum divided by the regulatory minimum. Excess capital to target ratio expressed in $ is the excess capital % multiplied
by either average assets or risk-weighted assets, assuming a static balance sheet over the next 24 months. Trailing twelve months PPE of $35.6 million extrapolated over two years. Earnings-driven Capital Shock-absorption
Deposit Composition Historical Deposit Growth Compound Annual Growth Rate = 18.4% Deposit Composition
as of March 31, 2022 Deposits totaled $1.3 billion as of March 31, 2022, of which $282.6 million were acquired from Cornerstone Core deposits represented $1.24 billion of total deposits as of March 31, 2022 compared to $857 million as of
March 31, 2021 Total core deposit growth YoY was $384.2 million, or 44.85% Dollars are in millions. Financial data is as of or for the three months ended March 31 2021 and 2022 and as of or for the twelve months ended of each respective
year. (1) We define core deposits as deposits obtained directly from the depositor and exclude deposits obtained from listing services and brokered deposits that are obtained through an intermediary. Core Deposits(1) 15
Appendix 16
17 Bank7 Corp. 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. EPS calculation is based on diluted shares. Combined federal and state effective tax rates for the three months ended March 31, 2022 and 2021 of 24.5% and 25.3%,
respectively. Represents a non-GAAP financial measure. See non-GAAP reconciliations table for reconciliation to most comparable GAAP measure for this metric. All pro forma amounts relate to the one-time, non-cash executive stock transfer
which occurred in September 2019. These amounts remove the compensation and related tax impact from net income. See detail and reconciliation on slide 21 of this presentation.
18 Bank7 Corp. Performance Ratios 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. Efficiency ratio is calculated by dividing noninterest expense by the sum of net interest income on a tax equivalent basis and noninterest income.
Represents a non-GAAP financial measure, see non-GAAP reconciliations table for reconciliation to the most comparable GAAP measure for this metric. Ratios are based on Bank level financial information rather than consolidated information.
At March 31, 2022, Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 9.27%, 11.54%, and 12.54% respectively for the Company. All pro forma amounts relate to the one-time, non-cash executive stock
transfer which occurred in September 2019. These amounts remove the compensation expense and related tax impact from net income. See detail and reconciliation on slide 21 of this presentation.
19 Non-GAAP Reconciliations
Loan Portfolio Distribution Dollars are in millions. Data as of March 31, 2022. Gross Loan Portfolio
Composition by Purpose Type 20
21 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 charged as compensation expense of $11.8 million,
including payroll taxes, through the income statement of the Company. Additionally, at the discretion of the employees receiving shares to assist in paying tax withholdings, 149,425 shares were withheld and subsequently canceled, resulting in a
charge to retained earnings of $2.6 million.
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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 interest rates, market behavior, and other economic conditions; future
laws, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters. These other matters include, among other things, the impact of COVID-19 on the United States economy and our
operations, the direct and indirect effect of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators. These forward-looking statements reflect Bank7 Corp.’s
current views with respect to, among other things, future events and Bank7 Corp.’s financial performance. Any statements about Bank7 Corp.’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or
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achieved. Bank7 Corp. has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that Bank7 Corp. believes may affect its financial condition, results of operations,
business strategy and financial needs. Bank7 Corp.’s actual results could differ materially from those anticipated in such forward-looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. If one or more
events related to these or other risks or uncertainties materialize, or if Bank7 Corp.’s underlying assumptions prove to be incorrect, actual results may differ materially from what Bank7 Corp. anticipates. You are cautioned not to place undue
reliance on forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made and Bank7 Corp. undertakes no obligation to update or revise any forward-looking statement to reflect events or
circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as may be required by law. All forward-looking statements herein are qualified by these cautionary statements. Within this
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Nothing in the data, forecasts or information used or derived from third party sources should be construed as advice. Some data and other information are also based on our good faith estimates, which are derived from our review of industry
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we are not aware of any misstatements regarding the economic, employment, industry and other market data presented herein, these estimates involve inherent risks and uncertainties and are based on assumptions that are subject to change. This
presentation includes certain non-GAAP financial measures, including pro forma net income, tax-adjusted net income, tax-adjusted earnings per share, tax-adjusted return on average assets and tax-adjusted return on average shareholders’ equity.
These non-GAAP financial measures and any other non-GAAP financial measures that we discuss in this presentation should not be considered in isolation, and should be considered as additions to, and not substitutes for or superior to, measures of
financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial
measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Bank7 Corp.’s non-GAAP financial measures as tools for comparison. See the table in the appendix of this presentation for a
reconciliation of the non-GAAP financial measures used in (or conveyed orally during) this presentation to their most directly comparable GAAP financial measures.