BSVN 8-K
Bank7 Corp. (BSVN)
8-K
2020-01-30
For: 2020-01-30
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)
January 30, 2020
Bank7 Corp.
(Exact name of registrant as specified in its charter)
|
Oklahoma
|
001-38656
|
20-0764349
|
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
1039 N.W. 63rd Street, Oklahoma City, Oklahoma 73116
(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:
| ☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
| ☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
| ☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
| ☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Securities
registered pursuant to Section 12(b) of the Act:
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange on which registered
|
|
Common Stock, $0.01 par value
|
BSVN
|
The NASDAQ Global Select Market
|
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).
|
|
|
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. ☐
| Item 2.02. |
Results of Operations and Financial Condition
|
| Item 7.01 |
Regulation FD Disclosure
|
On January 30, 2020, Bank7 Corp. (the “Company”), the holding company for Bank7, issued a press release announcing its results of operation and financial condition for the fiscal quarter and year ended December 31,
2019. 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 January 30, 2020 at 4:30 ET to discuss its fourth quarter and full year 2019 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.
| Item 9.01 |
Financial Statements and Exhibits
|
|
(d)
|
Exhibits.
|
The following exhibits are filed herewith:
|
Item
|
Description
|
||
|
Press Release dated January 30, 2020
|
|||
|
Fourth Quarter and Full Year 2019 Investor Presentation
|
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.
|
BANK7 CORP.
|
||
|
Date: January 30, 2020
|
By:
|
/s/ Kelly J. Harris
|
|
Kelly J. Harris
|
||
|
Senior Vice President and Chief Financial Officer
|
||
Exhibit 99.1
FOR IMMEDIATE RELEASE: Bank7 Corp. Announces 4Q and Full Year 2019 Earnings
Oklahoma City, OK, January 30, 2020 – Bank7 Corp. (NASDAQ: BSVN) ("the Company"), the parent company of Oklahoma City-based Bank7 (the "Bank"), today reported unaudited results for the fiscal quarter and year ended December 31, 2019. "The
fourth quarter was another good quarter for Bank7 and we are particularly pleased with our robust loan growth, the continuation of excellent credit quality, and our ability to maintain a strong net interest margin, especially in a declining
interest rate environment,” said Thomas L. Travis, President and CEO of the Company. “Additionally, for the full year, we are very pleased that our pro forma pre-tax income increased by $1 million, or 4.05%. This was achieved in spite of
incurring costs associated with launching into two new markets and modernizing our Oklahoma City branch and headquarters.”
On September 5, 2019, our largest shareholders, the Haines Family Trusts, contributed approximately 6.5% of their shares to the Company. Subsequently, the Company immediately issued those shares to certain executive officers, which was charged
as compensation expense through the income statement of the Company. This previously announced transaction was recorded as a one-time, non-cash expense; however, because the shares were simultaneously contributed to the Company by the Haines Family
Trusts, the transaction had a virtual net-zero impact to shareholders’ equity.
Excluding the one-time, extraordinary expense related to the stock transfer outlined above, net income would have been $20.0 million and for the year ending December 31, 2019. Illustrated below is a reconciliation of pro forma net income
through the year ended December 31, 2019.
|
For the Year Ended
December 31,
|
||||||||||||||||
|
2019
|
2018
|
$ Change
|
% Change
|
|||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
Pro Forma Net Income
|
||||||||||||||||
|
Total Interest Income
|
$
|
51,709
|
$
|
46,800
|
$
|
4,909
|
10.49
|
%
|
||||||||
|
Total Interest Expense
|
9,516
|
7,169
|
2,347
|
32.73
|
%
|
|||||||||||
|
Net Interest Margin
|
42,193
|
39,631
|
2,562
|
6.47
|
%
|
|||||||||||
| Provision for Loan Losses |
$ | - |
$ |
200 |
$ |
(200 |
) |
|||||||||
|
Total Noninterest Income
|
$
|
1,284
|
$
|
1,331
|
$
|
(47
|
)
|
(3.51
|
%)
|
|||||||
|
Total Noninterest Expense
|
$
|
28,432
|
$
|
14,966
|
$
|
13,466
|
89.98
|
%
|
||||||||
|
Stock Transfer Compensation Expense (1)
|
(11,796
|
)
|
-
|
(11,796
|
)
|
|||||||||||
|
Pro Forma Noninterest Expense
|
16,636
|
14,966
|
1,670
|
11.16
|
%
|
|||||||||||
|
Pro Forma Pre-Tax Income
|
$
|
26,842
|
$
|
25,796
|
$
|
1,046
|
4.05
|
%
|
||||||||
|
Pro Forma Income Tax Expense
|
$
|
6,836
|
$
|
5,719
|
$
|
1,117
|
19.53
|
%
|
||||||||
|
Pro Forma Net After-Tax Income
|
$
|
20,006
|
$
|
20,077
|
$
|
(71
|
)
|
(0.36
|
%)
|
|||||||
| (1) |
Compensation expense includes $168,000 in payroll taxes.
|
Additional Highlights
For the three months ended December 31, 2019 compared to three months ended December 31, 2018:
| - |
Interest income on loans, including loan fee income, totaled $12.3 million, a 4.33% increase
|
| - |
Average loans of $692.3 million, a 15.3% increase
|
For the year ended December 31, 2019 compared to the year ended December 31, 2018:
| - |
Yield on average earning assets, including loan fee income, of 6.55%, an increase of 1.10%
|
| - |
Interest income on loans, including loan fee income, totaled $48.2 million, a 8.86% increase
|
| - |
Average loans of $636.3 million, a 8.98% increase
|
| - |
Total loans of 699.5 million, a 18.14 increase
|
| - |
Core deposits of $678.1 million, a 10.24% increase
|
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. At December 31, 2019 the Tier 1 leverage ratio, Tier 1 risk based
capital ratio, and total risk-based capital ratios were 11.65%, 14.28%, and 15.42% respectively for the Bank. At December 31, 2019 the Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.49%, 14.06%,
and 15.20% respectively for the Company on a consolidated basis. Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.
Pre-tax, pre-provision net income is defined as income before taxes and provision for loan losses. We believe the most directly comparable GAAP financial measure is income before taxes. Disclosure of this measure
enables you to compare our operations to those of other banking companies before consideration of taxes and provision expense, which some investors may consider to be a more appropriate comparison given our S Corporation status prior to September
2018. We calculate our tax-adjusted net income, return on average assets, and return on average equity, and per share amounts by using a combined C Corporation effective tax rate for federal and state income taxes of 45.5% and 22.2% in 2019 and
2018, respectively. This calculation illustrates only the change from our status as a S Corporation into a C Corporation and does not give effect to any other transaction. However, we acknowledge that our non-GAAP financial measures have a number
of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other banking companies use. Other banking
companies may use names similar to those we use for non-GAAP financial measures we disclose, but may calculate them differently. You should understand how we and other companies each calculate their non-GAAP financial measures when making
comparisons. The following reconciliation table provides a more detailed analysis of these non-GAAP financial measures:
|
Three months ended
December 31,
|
For the Year ended
December 31,
|
|||||||||||||||
|
(Dollars in thousands, except per share data)
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
|
Loan interest income (excluding loan fees)
|
||||||||||||||||
|
Total loan interest income, including loan fee income
|
$
|
12,299
|
$
|
11,789
|
$
|
48,200
|
$
|
44,279
|
||||||||
|
Loan fee income
|
(944
|
)
|
(1,229
|
)
|
(4,443
|
)
|
(5,121
|
)
|
||||||||
|
Loan interest income excluding loan fee income
|
$
|
11,355
|
$
|
10,560
|
$
|
43,757
|
$
|
39,158
|
||||||||
|
Average total loans
|
$
|
692,286
|
$
|
600,400
|
$
|
636,274
|
$
|
583,821
|
||||||||
|
Yield on loans (including loan fee income)
|
7.05
|
%
|
7.79
|
%
|
7.58
|
%
|
7.58
|
%
|
||||||||
|
Yield on loans (excluding loan fee income)
|
6.51
|
%
|
6.98
|
%
|
6.88
|
%
|
6.71
|
%
|
||||||||
|
Net interest margin (excluding loan fees)
|
||||||||||||||||
|
Net interest income
|
$
|
10,658
|
$
|
10,530 |
$
|
43,193
|
$
|
39,631
|
||||||||
|
Loan fee income
|
(944
|
)
|
(1,229
|
)
|
(4,443
|
)
|
(5,121
|
)
|
||||||||
|
Net interest income excluding loan fees
|
$
|
9,714
|
$
|
9,301 |
$
|
37,750
|
$
|
34,510
|
||||||||
|
Average earning assets
|
$
|
837,252
|
$
|
760,869
|
$
|
789,009
|
$
|
721,935
|
||||||||
|
Net interest margin (including loan fee income)
|
5.05
|
|
5.49
|
%
|
5.35
|
%
|
5.49
|
%
|
||||||||
|
Net interest margin (excluding loan fee income)
|
4.60
|
|
4.85
|
%
|
4.78
|
%
|
4.78 |
%
|
||||||||
|
Pre-tax, pre-provision net earnings
|
||||||||||||||||
|
Net income before income taxes
|
$
|
6,358
|
$
|
6,753
|
$
|
15,045 |
$
|
25,797
|
||||||||
|
Plus: Provision (reversal of) for loan losses
|
-
|
(100 | ) |
-
|
(200
|
) |
||||||||||
|
Pre-tax, pre-provision net earnings
|
$
|
6,358
|
$
|
6,853
|
$
|
15,045 |
$
|
25,997
|
||||||||
|
Adjusted provision for income tax
|
||||||||||||||||
|
Net income before income taxes
|
$
|
6,358
|
$
|
6,753
|
$
|
15,045
|
$
|
25,797
|
||||||||
|
Total effective adjusted tax rate
|
29.6
|
%
|
17.7
|
%
|
45.5
|
%
|
22.2
|
%
|
||||||||
|
Adjusted provision for income taxes
|
$
|
1,879
|
$
|
1,192
|
$
|
6,844
|
$
|
5,720
|
||||||||
|
Tax-adjusted net income
|
||||||||||||||||
|
Net income before income taxes
|
$
|
6,358
|
$
|
6,753
|
$
|
15,045 |
$
|
25,797
|
||||||||
|
Adjusted provision for income taxes
|
1,879
|
1,192
|
6,844
|
5,720
|
||||||||||||
|
Tax-adjusted net income
|
$
|
4,479
|
$
|
5,561
|
$
|
8,201
|
$
|
20,077
|
||||||||
|
Tax-adjusted ratios and per share data
|
||||||||||||||||
|
Tax-adjusted net income (numerator)
|
$
|
4,479
|
$
|
5,561
|
$
|
8,201 |
$
|
20,077
|
||||||||
|
Average assets (denominator)
|
$
|
845,510
|
$
|
769,170
|
$
|
798,528
|
$
|
730,564
|
||||||||
|
Tax-adjusted return on average assets
|
2.10
|
%
|
2.87
|
%
|
1.03
|
%
|
2.75
|
%
|
||||||||
|
Average shareholders' equity (denominator)
|
$
|
102,691
|
$
|
85,790
|
$
|
97,430
|
$
|
78,148
|
||||||||
|
Tax-adjusted return on average shareholders' equity
|
17.31
|
%
|
25.72
|
%
|
8.42
|
%
|
25.69
|
%
|
||||||||
|
Average tangible common equity (denominator)
|
$
|
100,872
|
$
|
83,763
|
$
|
95,537
|
$
|
76,046 | ||||||||
|
Tax-adjusted return on average tangible common equity
|
17.62
|
%
|
26.34 |
%
|
8.58
|
%
|
26.40 |
%
|
||||||||
|
Weighted average common shares outstanding basic (denominator)
|
10,057,506
|
10,187,500
|
10,145,032 |
8,105,856
|
||||||||||||
|
Tax-adjusted net income per common share--basic
|
$
|
0.45 |
$
|
0.55
|
$
|
0.81
|
$
|
2.48 | ||||||||
|
Weighted average common shares outstanding diluted (denominator)
|
10,059,208
|
10,322,193
|
10,147,311 | 8,237,638 | ||||||||||||
|
Tax-adjusted net income per common share--diluted
|
$
|
0.45
|
$
|
0.54
|
$
|
0.81 |
$
|
2.44 | ||||||||
|
Pro forma weighted average common shares outstanding basic (denominator)
|
10,206,931
|
10,192,930
|
||||||||||||||
|
Pro Forma tax-adjusted net income per common share--basic
|
$
|
0.46
|
$
|
1.96
|
||||||||||||
|
Pro forma weighted average common shares outstanding diluted (denominator)
|
10,205,229
|
10,192,930 | ||||||||||||||
|
Pro forma tax-adjusted net income per common share--diluted
|
$
|
0.46
|
$
|
1.96
|
||||||||||||
|
Tangible assets
|
||||||||||||||||
|
Total assets
|
$
|
866,392
|
$
|
770,511 | ||||||||||||
|
Less: Goodwill and intangibles
|
(1,789
|
)
|
(1,995
|
)
|
||||||||||||
|
Tangible assets
|
$
|
864,603
|
$
|
768,516
|
||||||||||||
|
Tangible shareholders' equity
|
||||||||||||||||
|
Total shareholders' equity
|
$
|
100,126
|
$
|
88,467
|
||||||||||||
|
Less: Goodwill and intangibles
|
(1,789
|
)
|
(1,995
|
)
|
||||||||||||
|
Tangible shareholders' equity
|
$
|
98,337
|
$
|
86,472 | ||||||||||||
|
Tangible shareholders' equity
|
||||||||||||||||
|
Tangible shareholders' equity (numerator)
|
$
|
98,337
|
$
|
86,472 | ||||||||||||
|
Tangible assets (denominator)
|
$
|
864,603
|
$
|
768,516 | ||||||||||||
|
Tangible common equity to tangible assets
|
11.37
|
%
|
11.25
|
%
|
||||||||||||
|
End of period common shares outstanding
|
10,057,506
|
10,187,500
|
||||||||||||||
|
Book value per share
|
$
|
9.96
|
$
|
8.68
|
||||||||||||
|
Tangible book value per share
|
$
|
9.78
|
$
|
8.49
|
||||||||||||
|
Total shareholders' equity to total assets
|
11.56
|
%
|
11.48
|
%
|
||||||||||||
|
Net Interest Margin Excluding Loan Fee Income
|
||||||||||||||||||||||||
|
For the Three Months Ended December 3,1
|
||||||||||||||||||||||||
|
2019
|
2018
|
|||||||||||||||||||||||
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
|||||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||
|
Short-term investments(1)
|
$
|
143,604
|
$
|
674
|
1.86 |
%
|
$
|
159,215
|
$
|
795
|
1.98
|
%
|
||||||||||||
|
Investment securities(2)
|
1,073
|
23
|
8.50
|
1,055
|
—
|
0.00
|
||||||||||||||||||
|
Loans held for sale
|
289
|
—
|
0.00
|
199
|
—
|
0.00
|
||||||||||||||||||
|
Total loans(3)
|
692,286
|
11,355
|
6.51
|
600,400
|
10,560
|
6.98
|
||||||||||||||||||
|
Total interest-earning assets
|
837,252
|
12,052
|
5.71 |
760,869
|
11,355
|
5.92
|
||||||||||||||||||
|
Noninterest-earning assets
|
8,258
|
8,301
|
||||||||||||||||||||||
|
Total assets
|
$
|
845,510
|
$
|
769,170
|
||||||||||||||||||||
|
Funding sources:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Transaction accounts
|
$
|
314,106
|
1,133
|
1.43
|
%
|
$
|
259,614
|
1,155
|
1.77
|
%
|
||||||||||||||
|
Time deposits
|
213,716
|
1,205
|
2.24
|
196,696
|
899
|
1.81
|
||||||||||||||||||
|
Total interest-bearing deposits
|
527,822
|
2,338
|
1.76
|
456,310
|
2,054
|
1.79
|
||||||||||||||||||
|
Other borrowings
|
—
|
—
|
0.00
|
—
|
—
|
—
|
||||||||||||||||||
|
Total interest-bearing liabilities
|
527,822
|
2,338
|
1.76
|
456,310
|
2,054
|
1.79
|
||||||||||||||||||
|
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
|
Noninterest-bearing deposits
|
210,986
|
221,716
|
||||||||||||||||||||||
|
Other noninterest-bearing liabilities
|
4,011
|
5,354
|
||||||||||||||||||||||
|
Total noninterest-bearing liabilities
|
214,997
|
227,070
|
||||||||||||||||||||||
|
Shareholders’ equity
|
102,691
|
85,790
|
||||||||||||||||||||||
|
Total liabilities and shareholders’ equity
|
$
|
845,510
|
$
|
769,170
|
||||||||||||||||||||
|
Net interest income including loan fee income
|
$
|
9,714 |
$
|
9,301
|
||||||||||||||||||||
|
Net interest spread including loan fee income(4)
|
3.95
|
%
|
4.13
|
%
|
||||||||||||||||||||
|
Net interest margin including loan fee income
|
4.60
|
%
|
4.85
|
%
|
||||||||||||||||||||
|
Net Interest Margin With Loan Fee Income
|
||||||||||||||||||||||||
|
For the Three Months Ended December 31,
|
||||||||||||||||||||||||
|
2019
|
2018
|
|||||||||||||||||||||||
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
|||||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||
|
Short-term investments(1)
|
$
|
143,604
|
$
|
674 |
1.80
|
%
|
$
|
159,215
|
$
|
795
|
1.98
|
%
|
||||||||||||
|
Investment securities(2)
|
1,073
|
23
|
8.50
|
1,055
|
—
|
0.00
|
||||||||||||||||||
|
Loans held for sale
|
289
|
—
|
0.00
|
199
|
—
|
0.00
|
||||||||||||||||||
|
Total loans(3)
|
692,286
|
12,299
|
7.05
|
600,400
|
11,789
|
7.79
|
||||||||||||||||||
|
Total interest-earning assets
|
837,252
|
12,996 | 6.16 |
760,869
|
12,584
|
6.56
|
||||||||||||||||||
|
Noninterest-earning assets
|
8,258
|
8,301
|
||||||||||||||||||||||
|
Total assets
|
$
|
845,510
|
$
|
769,170
|
||||||||||||||||||||
|
Funding sources:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Transaction accounts
|
$
|
314,106
|
1,133
|
1.43
|
%
|
$
|
259,614
|
1,155
|
1.77
|
%
|
||||||||||||||
|
Time deposits
|
213,716
|
1,205
|
2.24
|
196,696
|
899
|
1.81
|
||||||||||||||||||
|
Total interest-bearing deposits
|
527,822
|
2,338
|
1.76
|
456,310
|
2,054
|
1.79
|
||||||||||||||||||
|
Other borrowings
|
—
|
—
|
0.00
|
—
|
—
|
0.00
|
||||||||||||||||||
|
Total interest-bearing liabilities
|
527,822
|
2,338
|
1.76
|
456,310
|
2,054
|
1.79
|
||||||||||||||||||
|
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
|
Noninterest-bearing deposits
|
210,986
|
221,716
|
||||||||||||||||||||||
|
Other noninterest-bearing liabilities
|
4,011
|
5,354
|
||||||||||||||||||||||
|
Total noninterest-bearing liabilities
|
214,997
|
227,070
|
||||||||||||||||||||||
|
Shareholders’ equity
|
102,691
|
85,790
|
||||||||||||||||||||||
|
Total liabilities and shareholders’ equity
|
$
|
845,510
|
$
|
769,170
|
||||||||||||||||||||
|
Net interest income excluding loan fee income
|
$
|
10,658 |
$
|
10,530
|
||||||||||||||||||||
|
Net interest spread excluding loan fee income(4)
|
4.40 |
%
|
4.78
|
%
|
||||||||||||||||||||
|
Net interest margin excluding loan fee income
|
5.05
|
%
|
5.49
|
%
|
||||||||||||||||||||
| (1) |
Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.
|
| (2) |
Includes income and average balances for FHLB and FRB stock.
|
| (3) |
Non-accrual loans are included in loans.
|
| (4) |
Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
|
|
Net Interest Margin Excluding Loan Fee Income
|
||||||||||||||||||||||||
|
For the Year Ended December 31,
|
||||||||||||||||||||||||
|
2019
|
2018
|
|||||||||||||||||||||||
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
|||||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||
|
Short-term investments(1)
|
$
|
151,434
|
$
|
3,459
|
2.28
|
%
|
$
|
136,880
|
$
|
2,521
|
1.84
|
%
|
||||||||||||
|
Investment securities(2)
|
1,065
|
50
|
4.69
|
1,052
|
—
|
0.00
|
||||||||||||||||||
|
Loans held for sale
|
236
|
—
|
0.00
|
182
|
—
|
0.00
|
||||||||||||||||||
|
Total loans(3)
|
636,274
|
43,757 |
6.88
|
583,821
|
39,158
|
6.71
|
||||||||||||||||||
|
Total interest-earning assets
|
789,009
|
47,266 |
5.99
|
721,935
|
41,679
|
5.77
|
||||||||||||||||||
|
Noninterest-earning assets
|
9,519
|
8,629
|
||||||||||||||||||||||
|
Total assets
|
$
|
798,528
|
$
|
730,564
|
||||||||||||||||||||
|
Funding sources:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Transaction accounts
|
$
|
295,576
|
5,057 |
1.71
|
%
|
$
|
240,881
|
3,584
|
1.49
|
%
|
||||||||||||||
|
Time deposits
|
208,375
|
4,459
|
2.14
|
220,023
|
3,410
|
1.55
|
||||||||||||||||||
|
Total interest-bearing deposits
|
503,951
|
9,516 |
1.89
|
460,904
|
6,994
|
1.52
|
||||||||||||||||||
|
Other borrowings
|
—
|
—
|
0.00
|
3,652
|
175
|
4.79
|
||||||||||||||||||
|
Total interest-bearing liabilities
|
503,951
|
9,516 |
1.89
|
464,556
|
7,169
|
1.54
|
||||||||||||||||||
|
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
|
Noninterest-bearing deposits
|
192,562
|
183,750
|
||||||||||||||||||||||
|
Other noninterest-bearing liabilities
|
4,585
|
4,110
|
||||||||||||||||||||||
|
Total noninterest-bearing liabilities
|
197,147
|
187,860
|
||||||||||||||||||||||
|
Shareholders’ equity
|
97,430
|
78,148
|
||||||||||||||||||||||
|
Total liabilities and shareholders’ equity
|
$
|
798,528
|
$
|
730,564
|
||||||||||||||||||||
|
Net interest income excluding loan fee income
|
$
|
37,750 |
$
|
34,510
|
||||||||||||||||||||
|
Net interest spread excluding loan fee income(4)
|
4.10
|
%
|
4.23
|
%
|
||||||||||||||||||||
|
Net interest margin excluding loan fee income
|
4.78
|
%
|
4.78
|
%
|
||||||||||||||||||||
| (1) |
Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.
|
| (2) |
Includes income and average balances for FHLB and FRB stock.
|
| (3) |
Non-accrual loans are included in loans.
|
| (4) |
Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
|
|
Net Interest Margin With Loan Fee Income
|
||||||||||||||||||||||||
|
For the Year Ended December 31,
|
||||||||||||||||||||||||
|
2019
|
2018
|
|||||||||||||||||||||||
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
|||||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||
|
Short-term investments(1)
|
$
|
151,434
|
$
|
3,459
|
2.28
|
%
|
$
|
136,880
|
$
|
2,521
|
1.84
|
%
|
||||||||||||
|
Investment securities(2)
|
1,065
|
50
|
4.69
|
1,052
|
—
|
0.00
|
||||||||||||||||||
|
Loans held for sale
|
236 |
—
|
0.00
|
182
|
—
|
0.00
|
||||||||||||||||||
|
Total loans(3)
|
636,274
|
48,200 |
7.58
|
583,821
|
44,279
|
7.58
|
||||||||||||||||||
|
Total interest-earning assets
|
789,009
|
51,709 |
6.55
|
721,935
|
46,800
|
6.48
|
||||||||||||||||||
|
Noninterest-earning assets
|
9,519
|
8,629
|
||||||||||||||||||||||
|
Total assets
|
$
|
798,528
|
$
|
730,564
|
||||||||||||||||||||
|
Funding sources:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Transaction accounts
|
$
|
295,576
|
5,057 |
1.71
|
%
|
$
|
240,881
|
3,584
|
1.49
|
%
|
||||||||||||||
|
Time deposits
|
208,375
|
4,459
|
2.14
|
220,023
|
3,410
|
1.55
|
||||||||||||||||||
|
Total interest-bearing deposits
|
503,951
|
9,516 |
1.89
|
460,904
|
6,994
|
1.52
|
||||||||||||||||||
|
Other borrowings
|
—
|
—
|
0.00
|
3,652
|
175
|
4.79
|
||||||||||||||||||
|
Total interest-bearing liabilities
|
503,951
|
9,516 |
1.89
|
464,556
|
7,169
|
1.54
|
||||||||||||||||||
|
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
|
Noninterest-bearing deposits
|
192,562
|
183,750
|
||||||||||||||||||||||
|
Other noninterest-bearing liabilities
|
4,585
|
4,110
|
||||||||||||||||||||||
|
Total noninterest-bearing liabilities
|
197,147
|
187,860
|
||||||||||||||||||||||
|
Shareholders’ equity
|
97,430
|
78,148
|
||||||||||||||||||||||
|
Total liabilities and shareholders’ equity
|
$
|
798,528
|
$
|
730,564
|
||||||||||||||||||||
|
Net interest income including loan fee income
|
$
|
42,193 |
$
|
39,631
|
||||||||||||||||||||
|
Net interest spread including loan fee income(4)
|
4.67
|
%
|
4.94
|
%
|
||||||||||||||||||||
|
Net interest margin including loan fee income
|
5.35
|
%
|
5.49
|
%
|
||||||||||||||||||||
| (1) |
Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.
|
| (2) |
Includes income and average balances for FHLB and FRB stock.
|
| (3) |
Non-accrual loans are included in loans.
|
| (4) |
Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
|
Bank7 Corp.
Consolidated Balance Sheets
|
Dollars in thousands, exceper per share data
|
Unaudited as of
|
|||||||||||
|
Assets
|
2019
|
December 31,
|
||||||||||
|
December 31
|
September 30
|
2018
|
||||||||||
|
Cash and due from banks
|
$
|
117,128
|
$
|
110,594
|
$
|
128,090
|
||||||
|
Interest-bearing time deposits in other banks
|
30,147
|
31,890
|
31,759
|
|||||||||
|
Loans, net
|
699,458 |
666,755
|
592,078
|
|||||||||
|
Loans held for sale
|
1,031 |
-
|
512
|
|||||||||
|
Premises and equipment, net
|
9,624
|
8,395
|
7,753
|
|||||||||
|
Nonmarketable equity securities
|
1,100
|
1,072
|
1,055
|
|||||||||
|
Foreclosed assets held for sale
|
-
|
77
|
110
|
|||||||||
|
Goodwill and intangibles
|
1,789
|
1,840
|
1,995
|
|||||||||
|
Interest receivable and other assets
|
6,115
|
6,198
|
7,159
|
|||||||||
|
Total assets
|
$
|
866,392
|
$
|
826,821
|
$
|
770,511
|
||||||
|
Liabilities and Shareholders’ Equity
|
||||||||||||
|
Deposits
|
||||||||||||
|
Noninterest-bearing
|
$
|
219,221
|
$
|
202,989
|
$
|
201,159
|
||||||
|
Interest-bearing
|
538,262
|
519,145
|
474,743
|
|||||||||
|
Total deposits
|
757,483
|
722,134
|
675,902
|
|||||||||
|
Income taxes payable
|
-
|
-
|
1,913
|
|||||||||
|
Interest payable and other liabilities
|
8,783
|
4,072
|
4,229
|
|||||||||
|
Total liabilities
|
766,266
|
726,206
|
682,044
|
|||||||||
|
Common stock
|
101
|
101
|
102
|
|||||||||
|
Additional paid-in capital
|
92,391
|
92,353
|
80,275
|
|||||||||
|
Retained earnings
|
7,610
|
8,161
|
8,090
|
|||||||||
|
Accumulated Other Comprehensive Income
|
24
|
-
|
-
|
|||||||||
|
Total shareholders’ equity
|
100,126
|
100,615
|
88,467
|
|||||||||
|
|
||||||||||||
|
Total liabilities and shareholders’ equity
|
$
|
866,392
|
$
|
826,821
|
$
|
770,511
|
||||||
Bank7 Corp.
Consolidated Statements of Income
|
|
Unaudited as of
|
|||||||||||||||||||
|
|
Quarter Ended
|
Year Ended
|
||||||||||||||||||
|
|
2019
|
2018
|
2019
|
2018
|
||||||||||||||||
|
Dollars in thousands, exceper per share data
|
December 31
|
September 30
|
December 31
|
December 31
|
December 31
|
|||||||||||||||
|
Interest Income
|
||||||||||||||||||||
|
Loans, including fees
|
$
|
12,299
|
$
|
12,179
|
$
|
11,789
|
$
|
48,200 |
$
|
44,279
|
||||||||||
|
Interest-bearing time deposits in other banks
|
295
|
500
|
150
|
1,709
|
588
|
|||||||||||||||
|
Interest-bearing deposits in other banks
|
402
|
392
|
645
|
1,800
|
1,933
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Total interest income
|
12,996
|
13,071
|
12,584
|
51,709 |
46,800
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Interest Expense
|
||||||||||||||||||||
|
Deposits
|
2,338
|
2,471
|
2,054
|
9,516
|
6,994
|
|||||||||||||||
|
Other borrowings
|
-
|
-
|
-
|
-
|
175
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Total interest expense
|
2,338
|
2,471
|
2,054
|
9,516
|
7,169
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Net Interest Income
|
10,658
|
10,600
|
10,530
|
42,193 |
39,631
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Provision for Loan Losses
|
-
|
-
|
100
|
-
|
200
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Net Interest Income After Provision for Loan Losses
|
10,658
|
10,600
|
10,430
|
42,193 |
39,431
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Noninterest Income
|
||||||||||||||||||||
|
Secondary market income
|
18
|
69
|
39
|
164
|
212
|
|||||||||||||||
|
Service charges on deposit accounts
|
113
|
110
|
86
|
392
|
347
|
|||||||||||||||
|
Other
|
126
|
330
|
137
|
728
|
772
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Total noninterest income
|
257
|
509
|
262
|
1,284
|
1,331
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Noninterest Expense
|
||||||||||||||||||||
|
Salaries and employee benefits
|
2,473
|
14,256
|
2,035
|
21,265
|
8,113
|
|||||||||||||||
|
Furniture and equipment
|
223
|
229
|
193
|
829
|
684
|
|||||||||||||||
|
Occupancy
|
520
|
436
|
207
|
1,677
|
1,310
|
|||||||||||||||
|
Data and item processing
|
264
|
276
|
250
|
1,078
|
966
|
|||||||||||||||
|
Accounting, marketing and legal fees
|
250
|
218
|
87
|
757
|
305
|
|||||||||||||||
|
Regulatory assessments
|
32
|
31
|
146
|
126
|
542
|
|||||||||||||||
|
Advertising and public relations
|
239
|
71
|
140
|
588
|
553
|
|||||||||||||||
|
Travel, lodging and entertainment
|
81
|
153
|
81
|
368
|
699
|
|||||||||||||||
|
Other
|
475
|
402
|
800
|
1,744
|
1,793
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Total noninterest expense
|
4,557
|
16,072
|
3,939
|
28,432
|
14,965
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Income Before Taxes
|
6,358
|
(4,963
|
)
|
6,753
|
15,045
|
25,797
|
||||||||||||||
|
Income tax expense
|
1,879
|
1,556
|
1,192
|
6,844
|
797
|
|||||||||||||||
|
Net Income
|
$
|
4,479
|
$
|
(6,519
|
)
|
$
|
5,561
|
$
|
8,201
|
$
|
25,000
|
|||||||||
|
|
||||||||||||||||||||
|
Earnings per common share - basic
|
$
|
0.45
|
$
|
(0.64
|
)
|
$
|
0.55
|
$
|
0.81
|
$
|
3.08
|
|||||||||
|
Diluted earnings per common share
|
0.45
|
(0.64
|
)
|
0.54
|
0.81
|
3.03
|
||||||||||||||
|
Weighted average common shares outstanding - basic
|
10,057,506
|
10,149,007
|
10,187,500
|
10,145,032
|
8,105,856
|
|||||||||||||||
|
Weighted average common shares outstanding - diluted
|
10,059,208
|
10,161,778
|
10,322,193
|
10,147,311
|
8,237,638
|
|||||||||||||||
About Bank7 Corp.
We are Bank7 Corp., a bank holding company headquartered in Oklahoma City, Oklahoma. Through our wholly-owned subsidiary, Bank7, we operate nine 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 fourth quarter and full year 2019 results, which will be broadcast live over the Internet, on Thursday, January 30 at 4:30 p.m. Eastern Time. To participate in the call, dial
1-888-348-6421, or access it live over the Internet at https://www.webcaster4.com/Webcast/Page/2179/32829. For those not able to
participate in the live call, an archive of the webcast will be available at https://www.webcaster4.com/Webcast/Page/2179/32829 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 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.
About Non-GAAP Financial Measures
This communication includes certain non-GAAP financial measures, including 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 above in this communication for a reconciliation of
the non-GAAP financial measures used in (or conveyed orally during) this communication to their most directly comparable GAAP financial measures.
Contact:
Thomas Travis
President & CEO
(405) 810-8600
Exhibit 99.2
Corporate Overview NASDAQ: BSVN December 31,2018 December 31,2019 $ Change % Change Assets $771
million $866 million $96 million 12.4% Loans $600 million $707 million $107 million 17.9% Deposits $676 million $758 million $82 million 12.1% One of the Top Performing Community Banks in the United States(1)Track Record of Strong
Profitability and Expense ControlIntense Focus on Underwriting and Asset QualityScalable and Consistently Growing Platform (1) Best-performing community banks of 2018 under $3B in assets, S&P Global Market Intelligence -
https://www.spglobal.com/marketintelligence/en/news-insights/trending/5zt6a8x6w9-uBR3RAAq5xg2 1
Fourth Quarter & Full Year Accomplishments Strong Core Earnings Loan growth generated a higher net
interest income, and combined with our stable net interest margin to boost pro forma pre-tax income(2) by $1.0 million YOY, or 4.05%, despite facing a falling interest rate environment and adding two new locations during the year.The Company
earned a record $37.8 million in net interest income excluding loan fees in 2019 compared to $34.3 million for 2018(1).Management maintained a stable net interest margin within historical ranges. All-time Highs & Robust Growth The Company
ended the year with $866.4 million in total assets, $707.3 million in total loans, and $757.5 million in total deposits.Changes from 2018 to 2019: - Total assets increased $95.9 million, or 12.4% - Total loans increased $107.4 million, or 17.9%
- Total deposit growth of $81.6 million, or 12.1% - Tangible shareholders’ equity increased $11.8 million, or 13.7% 2 Footprint Expansion During 4Q, we converted our existing Tulsa LPO to a full-service branch, which was opened in January
2020.Modernized our Oklahoma City corporate headquarters and renovated our Oklahoma City branch into a state-of-the-art banking center. Capital Management The Company established a quarterly dividend, which paid 10 cents per share (40 cents
per share or 2.1% yield annualized).In addition to the regular quarterly dividend, a special dividend of 40 cents per share (2.1% yield) was declared and paid. Net interest income excluding fees is a non-GAAP financial measure. See non-GAAP
reconciliation table for detailed calculation of this measure. Pro Forma pre-tax income 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 Pro Forma Net Income reconciliation table for detailed calculation of this measure.
Bank7 Corp. Key Statistics For the Year EndedDecember 31, 2019 After Tax Net Income & EPS
(2)(3) Dollars are in millions, except earnings per share. Financial data is as of or for the twelve months ended December 31 of each respective year.Tangible shareholders’ equity and tangible shareholders’ equity to tangible assets are
non-GAAP financial measures. See non-GAAP reconciliation table for reconciliation to their most comparable GAAP measures.Profitability metrics 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 basic and diluted shares and pro forma net income. Combined federal and state effective tax rates for 2018 and 2019 were 22.2% and 45.5%, respectively. Pro Forma YTD net income 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 Pro Forma Net Income reconciliation table for detailed calculation of this
measure.Net interest margin (excluding loan fee income) is a non-GAAP financial measure. See non-GAAP reconciliation table for reconciliation to its most comparable GAAP measure.At December 31, 2019, Tier 1 leverage ratio, Tier 1 risk based
capital ratio, and total risk-based capital ratios were 11.49%, 14.06%, and 15.20% respectively for the Company. Total Assets 3 Pro Forma
Pro Forma Net Income Reconciliation 4 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. (1) Due to the Company’s status as a subchapter S corporation for a portion of 2018, this Pro forma income tax expense was adjusted as if the Company were a C Corporation at the estimated tax rates
for the period presented. Combined federal and state effective tax rate for 2018 was 22.2%.
Strong Historical Performance Return on Average Assets (1)(2) Return on Average Tangible Common Equity
(1) (2) Dollars are in millionsFinancial data is as of or for the twelve months ended December 31 of each respective year.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, efficiency ratio, and noninterest expense to average assets ratio are non-GAAP financial measures. See non-GAAP reconciliation table for reconciliation to their most comparable GAAP
measures. Leveraging Our Employee Base(2) Efficiency Ratio(2) We continue to produce excellent returns on average assets (ROAA) and also on average tangible common equity (ROATCE). Excluding the one-time non-cash executive stock transaction,
pro forma ROAA and ROATCE for the year were 2.51% and 20.7%, respectively.We have maintained our excellent efficiency ratio, as highlighted by our low noninterest expense to average assets ratio. Excluding the one-time non-cash executive stock
transaction, our pro forma efficiency ratio for the year was 38.3%. 5 5-year average: 1.96% 5-year average: 22.3% 3.56% Pro Forma Pro Forma Pro Forma Pro Forma Actual
Net Income December 31, 2018 December 31, 2019 Balance Sheet and Earnings Growth Dollars are in
millions, except earnings per share.Financial data is as of or for the years ended December 31, 2019 and 2018.Net income is tax-adjusted as if the Company were a C Corporation at the estimated tax rates for the respective periods. Tangible book
value per share is a non-GAAP financial measure. See Appendix for reconciliation to its most comparable GAAP measure. Balance Sheet and Earnings Growth Tangible Book Value Per Share (2) (1) For the year, tangible book value per share grew
by $1.29, or 15.2%. YOY balance sheet growth remains strong, highlighted by 17.9% of loan growth, deposit growth of 12.1%, 12.4% total asset growth and 13.2% growth in total shareholders’ equity.Excluding the one-time, non-cash executive stock
transaction, we grew pre-tax YOY earnings by 4.05% in a falling interest rate environment, despite expenses related to our newly opened Dallas and Tulsa locations, and expenses related to being a public company. 6 Pro Forma
Net Interest Margin Financial data is as of or for the twelve months ended December 31 of each
respective year, and as of the three months ended December 31, 2019.Net interest margin (excluding loan fee income) is a non-GAAP financial measure. See Appendix for reconciliation to their most comparable GAAP measures. Net Interest
Margin Net interest margin excluding loan fee income continues to remain well within our historical range. 7
Allowance for Loan Losses to Total Loans Nonperforming Assets to Loans and OREO Asset Quality Net
Charge-Offs to Average Loans Financial data is as of or for the twelve months ended December 31 of each respective year. Asset quality remains strong, our quality underwriting and disciplined lending practices continue to produce low levels
of nonperforming assets.We continue to maintain a strong loan loss reserve.Net recoveries of $14,000 in 2019. 8
Diversified Loan Portfolio Dollars are in millions. Data as of December 31, 2019. Gross Loan Portfolio
Composition by Purpose Type 9
Deposit Composition Historical Deposit Growth Compound Annual Growth Rate = 10.5% Deposit Composition
as of December 31, 2019 84.7% of our loan customers also had a deposit relationship with us as of December 31, 2019.Core Deposits(1)Total organic core deposit growth YOY was $62.9M, or 10.2%. Core deposits totaled $678.4 million as of
December 31, 2019 compared to $615.4 million as of December 31, 2018. Dollars are in millions.Financial data is as of or for the twelve months ended December 31 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. 28.4% 26.3% Commentary 10
Appendix 11
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 2018 and 2019 were 22.2% and 45.5%, respectively. Represents a non-GAAP financial
measure. See non-GAAP reconciliations table for reconciliation to its more comparable GAAP measure. 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 4 of this presentation. 12
Bank7 Corp. 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.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 its more comparable GAAP measure. Ratios are based on Bank level financial information rather than consolidated information. At December 31, 2019 Tier 1
leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.49%, 14.06%, and 15.20% 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 4 of this presentation. 13
Non-GAAP Reconciliations 14
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 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 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 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. 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 presentation, we reference
certain market, industry and demographic data, forecasts and other statistical information. We have obtained this data, forecasts and information from various independent, third party industry sources and publications. 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 publications and surveys
and independent sources. We believe that these sources and estimates are reliable, but have not independently verified them. Statements as to our market position are based on market data currently available to us. Although 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 on Slide 15 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. 15