BSVN 8-K
Bank7 Corp. (BSVN)
8-K
2021-10-21
For: 2021-10-21
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)
|
|
|
|
|
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
(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
|
|
|
|
|
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 October 21, 2021, 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 September 30, 2021. 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 October 21, 2021 at 4:30 pm ET to discuss its third quarter 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 October 21, 2021
|
|||
|
Third Quarter 2021 Investor Presentation
|
|||
| 104 | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document. |
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: October 21, 2021
|
By:
|
/s/ Kelly J. Harris
|
|
Kelly J. Harris
|
||
|
Executive Vice President and Chief Financial Officer
|
||
Exhibit 99.1
FOR IMMEDIATE RELEASE: Bank7 Corp. Announces Q3 2021 Earnings
Oklahoma City, October 21, 2021 – 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 September 30, 2021. “Our company continues to perform at a very high level, we are pleased to report another record quarter of net income for BSVN. While we are proud of our earnings, capital, and
liquidity strength, we also pause to acknowledge the 3-year anniversary of our IPO, and how we had confidence in our team to perform at a high level and we’ve exceeded those expectations.” said Thomas L. Travis, President and CEO of the Company.
Three months ended September 30, 2021 compared to three months ended September 30, 2020:
| - |
Pre-tax, pre-provision earnings of $9.1 million compared to $7.4 million, an increase of 23.5%
|
| - |
Net income of $6.3 million compared to $4.4 million, an increase of 41.1%
|
| - |
Total assets of $1.1 billion compared to $973.4 million, an increase of 17.8%
|
| - |
Total deposits of $1.0 billion compared to $863.7 million, an increase of 17.9%
|
| - |
Tangible book value per share of $13.34 compared to $11.21, an increase of 19.0%
|
| - |
Average cost of funds of 0.33% compared to 0.57%, a decrease of 42.1%
|
| - |
Earnings per share of $0.69 compared to $0.48, an increase of 43.8%
|
| - |
ROAA of 2.36% compared to 1.83%, an increase of 28.9%
|
| - |
ROATCE of 21.12% compared to 17.44%, an increase of 21.1%
|
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 September 30, 2021, the Bank’s Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.51%, 13.76%, and 14.82%, respectively. On September 30, 2021, on a consolidated basis, the
Company’s Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.50%, 13.74%, and 14.80%, respectively. Designation as a well-capitalized institution under regulations does not constitute a
recommendation or endorsement by bank regulators.
Pre-tax, pre-provision earnings 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. We calculate our tax-adjusted net income,
return on average assets, and return on average equity, and per share amounts by using a combined effective tax rate for federal and state income taxes of 24.8% and 27.2% in the third quarter of 2021 and 2020, respectively. 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
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
|
(Dollars in thousands, except per share data)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
|
Loan interest income (excluding loan fees)
|
||||||||||||||||
|
Total loan interest income, including loan fee income
|
$
|
13,927
|
$
|
12,777
|
$
|
41,377
|
$
|
39,268
|
||||||||
|
Loan fee income
|
(1,636
|
)
|
(1,078
|
)
|
(6,154
|
)
|
(3,969
|
)
|
||||||||
|
Loan interest income excluding loan fee income
|
$
|
12,291
|
$
|
11,699
|
$
|
35,223
|
$
|
35,299
|
||||||||
|
Average total loans
|
$
|
924,391
|
$
|
847,076
|
$
|
887,353
|
$
|
807,134
|
||||||||
|
Yield on loans (including loan fee income)
|
5.98
|
6.00
|
6.23
|
6.50
|
||||||||||||
|
Yield on loans (excluding loan fee income)
|
5.28
|
5.49
|
5.31
|
5.84
|
||||||||||||
|
Pre-tax, pre-provision net earnings
|
||||||||||||||||
|
Net income before income taxes
|
$
|
8,327
|
$
|
6,101
|
$
|
23,226
|
$
|
19,567
|
||||||||
|
Plus: Provision for loan losses
|
750
|
1,250
|
3,325
|
3,300
|
||||||||||||
|
Pre-tax, pre-provision net earnings
|
$
|
9,077
|
$
|
7,351
|
$
|
26,551
|
$
|
22,867
|
||||||||
|
Adjusted provision for income tax
|
||||||||||||||||
|
Net income before income taxes
|
$
|
8,327
|
$
|
6,101
|
$
|
23,226
|
$
|
19,567
|
||||||||
|
Total effective adjusted tax rate
|
24.8
|
%
|
27.2
|
%
|
24.8
|
%
|
25.8
|
%
|
||||||||
|
Adjusted provision for income taxes
|
$
|
2,063
|
$
|
1,661
|
$
|
5,753
|
$
|
5,040
|
||||||||
|
Tax-adjusted net income
|
||||||||||||||||
|
Net income before income taxes
|
$
|
8,327
|
$
|
6,101
|
$
|
23,226
|
$
|
19,567
|
||||||||
|
Adjusted provision for income taxes
|
2,063
|
1,661
|
5,753
|
5,040
|
||||||||||||
|
Tax-adjusted net income
|
$
|
6,264
|
$
|
4,440
|
$
|
17,473
|
$
|
14,527
|
||||||||
|
Tax-adjusted ratios and per share data
|
||||||||||||||||
|
Tax-adjusted net income (numerator)
|
$
|
6,264
|
$
|
4,440
|
$
|
17,473
|
$
|
14,527
|
||||||||
|
Average assets (denominator)
|
$
|
1,051,873
|
$
|
967,044
|
$
|
1,019,764
|
$
|
937,849
|
||||||||
|
Tax-adjusted return on average assets
|
2.36
|
%
|
1.83
|
%
|
2.29
|
%
|
2.07
|
%
|
||||||||
|
Average shareholders' equity (denominator)
|
$
|
119,145
|
$
|
102,929
|
$
|
113,817
|
$
|
101,377
|
||||||||
|
Tax-adjusted return on average shareholders' equity
|
20.86
|
%
|
17.16
|
%
|
20.53
|
%
|
19.14
|
%
|
||||||||
|
Average tangible common equity (denominator)
|
$
|
117,679
|
$
|
101,269
|
$
|
112,305
|
$
|
99,667
|
||||||||
|
Tax-adjusted return on average tangible common equity
|
21.12
|
%
|
17.44
|
%
|
20.80
|
%
|
19.47
|
%
|
||||||||
|
Weighted average common shares outstanding basic (denominator)
|
9,052,718
|
9,228,128
|
9,051,112
|
9,483,540
|
||||||||||||
|
Tax-adjusted net income per common share--basic
|
$
|
0.69
|
$
|
0.48
|
$
|
1.93
|
$
|
1.53
|
||||||||
|
Weighted average common shares outstanding diluted (denominator)
|
9,105,255
|
9,228,128
|
9,078,671
|
9,483,540
|
||||||||||||
|
Tax-adjusted net income per common share--diluted
|
$
|
0.69
|
$
|
0.48
|
$
|
1.92
|
$
|
1.53
|
||||||||
|
Tangible assets
|
||||||||||||||||
|
Total assets
|
$
|
1,146,230
|
$
|
973,354
|
||||||||||||
|
Less: Goodwill and intangibles
|
(1,446
|
)
|
(1,634
|
)
|
||||||||||||
|
Tangible assets
|
$
|
1,144,784
|
$
|
971,720
|
||||||||||||
|
Tangible shareholders' equity
|
||||||||||||||||
|
Total shareholders' equity
|
$
|
122,409
|
$
|
105,230
|
||||||||||||
|
Less: Goodwill and intangibles
|
(1,446
|
)
|
(1,634
|
)
|
||||||||||||
|
Tangible shareholders' equity
|
$
|
120,963
|
$
|
103,596
|
||||||||||||
|
Tangible shareholders' equity
|
||||||||||||||||
|
Tangible shareholders' equity (numerator)
|
$
|
120,963
|
$
|
103,596
|
||||||||||||
|
Tangible assets (denominator)
|
1,144,784
|
971,720
|
||||||||||||||
|
Tangible common equity to tangible assets
|
10.57
|
%
|
10.66
|
%
|
||||||||||||
|
End of period common shares outstanding
|
9,070,038
|
9,241,689
|
||||||||||||||
|
Book value per share
|
$
|
13.50
|
$
|
11.39
|
||||||||||||
|
Tangible book value per share
|
$
|
13.34
|
$
|
11.21
|
||||||||||||
|
Total shareholders' equity to total assets
|
10.68
|
%
|
10.81
|
%
|
||||||||||||
|
Net Interest Margin Excluding Loan Fee Income
|
||||||||||||||||||||||||
|
For the Three Months Ended September 30,
|
||||||||||||||||||||||||
|
2021
|
2020
|
|||||||||||||||||||||||
|
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)
|
$
|
120,078
|
$
|
79
|
0.26
|
%
|
$
|
111,019
|
$
|
147
|
0.53
|
%
|
||||||||||||
|
Investment securities(2)
|
1,187
|
2
|
0.67
|
1,138
|
2
|
0.70
|
||||||||||||||||||
|
Loans held for sale
|
610
|
-
|
-
|
425
|
-
|
-
|
||||||||||||||||||
|
Total loans(3)
|
924,391
|
12,291
|
5.28
|
847,076
|
11,699
|
5.49
|
||||||||||||||||||
|
Total interest-earning assets
|
1,046,266
|
12,372
|
4.69
|
959,658
|
11,848
|
4.91
|
||||||||||||||||||
|
Noninterest-earning assets
|
5,607
|
7,386
|
||||||||||||||||||||||
|
Total assets
|
$
|
1,051,873
|
$
|
967,044
|
||||||||||||||||||||
|
Funding sources:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Transaction accounts
|
$
|
401,843
|
332
|
0.33
|
%
|
$
|
381,572
|
545
|
0.57
|
%
|
||||||||||||||
|
Time deposits
|
220,189
|
397
|
0.72
|
200,961
|
780
|
1.54
|
||||||||||||||||||
|
Total interest-bearing deposits
|
622,032
|
729
|
0.46
|
582,533
|
1,325
|
0.90
|
||||||||||||||||||
|
Total interest-bearing liabilities
|
622,032
|
729
|
0.46
|
582,533
|
1,325
|
0.90
|
||||||||||||||||||
|
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
|
Noninterest-bearing deposits
|
304,063
|
276,219
|
||||||||||||||||||||||
|
Other noninterest-bearing liabilities
|
6,633
|
5,363
|
||||||||||||||||||||||
|
Total noninterest-bearing liabilities
|
310,696
|
281,582
|
||||||||||||||||||||||
|
Shareholders' equity
|
119,145
|
102,929
|
||||||||||||||||||||||
|
Total liabilities and shareholders' equity
|
$
|
1,051,873
|
$
|
967,044
|
||||||||||||||||||||
|
Net interest income excluding loan fee income
|
$
|
11,643
|
$
|
10,523
|
||||||||||||||||||||
|
Net interest spread excluding loan fee income(4)
|
4.23
|
%
|
4.01
|
%
|
||||||||||||||||||||
|
Net interest margin excluding loan fee income
|
4.41
|
%
|
4.36
|
%
|
||||||||||||||||||||
|
Net Interest Margin Including Loan Fee Income
|
||||||||||||||||||||||||
|
For the Three Months Ended September 30,
|
||||||||||||||||||||||||
|
2021
|
2020
|
|||||||||||||||||||||||
|
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)
|
$
|
120,078
|
$
|
79
|
0.26
|
%
|
$
|
111,019
|
$
|
147
|
0.53
|
%
|
||||||||||||
|
Investment securities(2)
|
1,187
|
2
|
0.67
|
1,138
|
2
|
0.70
|
||||||||||||||||||
|
Loans held for sale
|
610
|
-
|
-
|
425
|
-
|
-
|
||||||||||||||||||
|
Total loans(3)
|
924,391
|
13,927
|
5.98
|
847,076
|
12,777
|
6.00
|
||||||||||||||||||
|
Total interest-earning assets
|
1,046,266
|
14,008
|
5.31
|
959,658
|
12,926
|
5.36
|
||||||||||||||||||
|
Noninterest-earning assets
|
5,607
|
7,386
|
||||||||||||||||||||||
|
Total assets
|
$
|
1,051,873
|
$
|
967,044
|
||||||||||||||||||||
|
Funding sources:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Transaction accounts
|
$
|
401,843
|
332
|
0.33
|
%
|
$
|
381,572
|
545
|
0.57
|
%
|
||||||||||||||
|
Time deposits
|
220,189
|
397
|
0.72
|
200,961
|
780
|
1.54
|
||||||||||||||||||
|
Total interest-bearing deposits
|
622,032
|
729
|
0.46
|
582,533
|
1,325
|
0.90
|
||||||||||||||||||
|
Total interest-bearing liabilities
|
622,032
|
729
|
0.46
|
582,533
|
1,325
|
0.90
|
||||||||||||||||||
|
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
|
Noninterest-bearing deposits
|
$
|
304,063
|
276,219
|
|||||||||||||||||||||
|
Other noninterest-bearing liabilities
|
6,633
|
5,363
|
||||||||||||||||||||||
|
Total noninterest-bearing liabilities
|
310,696
|
281,582
|
||||||||||||||||||||||
|
Shareholders' equity
|
119,145
|
102,929
|
||||||||||||||||||||||
|
Total liabilities and shareholders' equity
|
$
|
1,051,873
|
$
|
967,044
|
||||||||||||||||||||
|
Net interest income including loan fee income
|
$
|
13,279
|
$
|
11,601
|
||||||||||||||||||||
|
Net interest spread including loan fee income(4)
|
4.85
|
%
|
4.45
|
%
|
||||||||||||||||||||
|
Net interest margin including loan fee income
|
5.04
|
%
|
4.81
|
%
|
||||||||||||||||||||
| (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 Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
2021
|
2020
|
|||||||||||||||||||||||
|
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)
|
$
|
124,801
|
$
|
236
|
0.25
|
%
|
$
|
120,909
|
$
|
701
|
0.77
|
%
|
||||||||||||
|
Investment securities(2)
|
1,182
|
19
|
2.15
|
1,109
|
21
|
2.53
|
||||||||||||||||||
|
Loans held for sale
|
501
|
-
|
-
|
258
|
-
|
-
|
||||||||||||||||||
|
Total loans(3)
|
887,353
|
35,223
|
5.31
|
807,134
|
35,299
|
5.84
|
||||||||||||||||||
|
Total interest-earning assets
|
1,013,837
|
35,478
|
4.68
|
929,410
|
36,021
|
5.18
|
||||||||||||||||||
|
Noninterest-earning assets
|
5,927
|
8,439
|
||||||||||||||||||||||
|
Total assets
|
$
|
1,019,764
|
$
|
937,849
|
||||||||||||||||||||
|
Funding sources:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Transaction accounts
|
$
|
410,299
|
1,024
|
0.33
|
%
|
$
|
366,162
|
2,259
|
0.82
|
%
|
||||||||||||||
|
Time deposits
|
212,706
|
1,352
|
0.85
|
208,650
|
2,769
|
1.77
|
||||||||||||||||||
|
Total interest-bearing deposits
|
623,005
|
2,376
|
0.51
|
574,812
|
5,028
|
1.17
|
||||||||||||||||||
|
Total interest-bearing liabilities
|
623,005
|
2,376
|
0.51
|
574,812
|
5,028
|
1.17
|
||||||||||||||||||
|
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
|
Noninterest-bearing deposits
|
277,308
|
256,429
|
||||||||||||||||||||||
|
Other noninterest-bearing liabilities
|
5,634
|
5,231
|
||||||||||||||||||||||
|
Total noninterest-bearing liabilities
|
282,942
|
261,660
|
||||||||||||||||||||||
|
Shareholders' equity
|
113,817
|
101,377
|
||||||||||||||||||||||
|
Total liabilities and shareholders' equity
|
$
|
1,019,764
|
$
|
937,849
|
||||||||||||||||||||
|
Net interest income excluding loan fee income
|
$
|
33,102
|
$
|
30,993
|
||||||||||||||||||||
|
Net interest spread excluding loan fee income(4)
|
4.17
|
%
|
4.01
|
%
|
||||||||||||||||||||
|
Net interest margin excluding loan fee income
|
4.37
|
%
|
4.45
|
%
|
||||||||||||||||||||
|
Net Interest Margin With Loan Fee Income
|
||||||||||||||||||||||||
|
For the Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
2021
|
2020
|
|||||||||||||||||||||||
|
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)
|
$
|
124,801
|
$
|
236
|
0.25
|
%
|
$
|
120,909
|
$
|
701
|
0.77
|
%
|
||||||||||||
|
Investment securities(2)
|
1,182
|
19
|
2.15
|
1,109
|
21
|
2.53
|
||||||||||||||||||
|
Loans held for sale
|
501
|
-
|
-
|
258
|
-
|
-
|
||||||||||||||||||
|
Total loans(3)
|
887,353
|
41,377
|
6.23
|
807,134
|
39,268
|
6.50
|
||||||||||||||||||
|
Total interest-earning assets
|
1,013,837
|
41,632
|
5.49
|
929,410
|
39,990
|
5.75
|
||||||||||||||||||
|
Noninterest-earning assets
|
5,927
|
8,439
|
||||||||||||||||||||||
|
Total assets
|
$
|
1,019,764
|
$
|
937,849
|
||||||||||||||||||||
|
Funding sources:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Transaction accounts
|
$
|
410,299
|
1,024
|
0.33
|
%
|
$
|
366,162
|
2,259
|
0.82
|
%
|
||||||||||||||
|
Time deposits
|
212,706
|
1,352
|
0.85
|
208,650
|
2,769
|
1.77
|
||||||||||||||||||
|
Total interest-bearing deposits
|
623,005
|
2,376
|
0.51
|
574,812
|
5,028
|
1.17
|
||||||||||||||||||
|
Total interest-bearing liabilities
|
623,005
|
2,376
|
0.51
|
574,812
|
5,028
|
1.17
|
||||||||||||||||||
|
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
|
Noninterest-bearing deposits
|
277,308
|
256,429
|
||||||||||||||||||||||
|
Other noninterest-bearing liabilities
|
5,634
|
5,231
|
||||||||||||||||||||||
|
Total noninterest-bearing liabilities
|
282,942
|
261,660
|
||||||||||||||||||||||
|
Shareholders' equity
|
113,817
|
101,377
|
||||||||||||||||||||||
|
Total liabilities and shareholders' equity
|
$
|
1,019,764
|
$
|
937,849
|
||||||||||||||||||||
|
Net interest income including loan fee income
|
$
|
39,256
|
$
|
34,962
|
||||||||||||||||||||
|
Net interest spread including loan fee income(4)
|
4.98
|
%
|
4.58
|
%
|
||||||||||||||||||||
|
Net interest margin including loan fee income
|
5.18
|
%
|
5.02
|
%
|
||||||||||||||||||||
| (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
|
Unaudited as of
|
|||||||
|
Assets
|
September 30,
|
December 31,
|
||||||
|
2021
|
2020
|
|||||||
|
Cash and due from banks
|
$
|
205,762
|
$
|
153,901
|
||||
|
Interest-bearing time deposits in other banks
|
5,229
|
16,412
|
||||||
|
Loans, net
|
915,393
|
826,974
|
||||||
|
Loans held for sale
|
1,002
|
324
|
||||||
|
Premises and equipment, net
|
8,775
|
9,151
|
||||||
|
Nonmarketable equity securities
|
1,193
|
1,172
|
||||||
|
Goodwill and intangibles
|
1,446
|
1,583
|
||||||
|
Interest receivable and other assets
|
7,430
|
7,152
|
||||||
|
Total assets
|
$
|
1,146,230
|
$
|
1,016,669
|
||||
|
Liabilities and Shareholders’ Equity
|
||||||||
|
Deposits
|
||||||||
|
Noninterest-bearing
|
$
|
335,316
|
$
|
246,569
|
||||
|
Interest-bearing
|
683,058
|
658,945
|
||||||
|
Total deposits
|
1,018,374
|
905,514
|
||||||
|
Interest payable and other liabilities
|
5,447
|
3,827
|
||||||
|
Total liabilities
|
1,023,821
|
909,350
|
||||||
|
Common stock
|
91
|
90
|
||||||
|
Additional paid-in capital
|
93,766
|
93,162
|
||||||
|
Retained earnings
|
28,552
|
14,067
|
||||||
|
Total shareholders’ equity
|
122,409
|
107,319
|
||||||
|
Total liabilities and shareholders’ equity
|
$
|
1,146,230
|
$
|
1,016,669
|
||||
Bank7 Corp.
Consolidated Statements of Income
|
Unaudited as of
|
||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
Dollars in thousands, except per share data
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
|
Interest Income
|
||||||||||||||||
|
Loans, including fees
|
$
|
13,927
|
$
|
12,777
|
$
|
41,377
|
$
|
39,268
|
||||||||
|
Interest-bearing time deposits in other banks
|
35
|
123
|
141
|
419
|
||||||||||||
|
Interest-bearing deposits in other banks
|
46
|
26
|
114
|
303
|
||||||||||||
|
|
||||||||||||||||
|
Total interest income
|
14,008
|
12,926
|
41,632
|
39,990
|
||||||||||||
|
|
||||||||||||||||
|
Interest Expense
|
||||||||||||||||
|
Deposits
|
729
|
1,325
|
2,376
|
5,028
|
||||||||||||
|
|
||||||||||||||||
|
Total interest expense
|
729
|
1,325
|
2,376
|
5,028
|
||||||||||||
|
|
||||||||||||||||
|
Net Interest Income
|
13,279
|
11,601
|
39,256
|
34,962
|
||||||||||||
|
|
||||||||||||||||
|
Provision for Loan Losses
|
750
|
1,250
|
3,325
|
3,300
|
||||||||||||
|
|
||||||||||||||||
|
Net Interest Income After Provision for Loan Losses
|
12,529
|
10,351
|
35,931
|
31,662
|
||||||||||||
|
|
||||||||||||||||
|
Noninterest Income
|
||||||||||||||||
|
Secondary market income
|
161
|
57
|
253
|
134
|
||||||||||||
|
Service charges on deposit accounts
|
141
|
104
|
380
|
318
|
||||||||||||
|
Other
|
275
|
173
|
860
|
513
|
||||||||||||
|
|
||||||||||||||||
|
Total noninterest income
|
577
|
334
|
1,493
|
965
|
||||||||||||
|
|
||||||||||||||||
|
Noninterest Expense
|
||||||||||||||||
|
Salaries and employee benefits
|
2,946
|
2,505
|
8,685
|
7,576
|
||||||||||||
|
Furniture and equipment
|
218
|
224
|
651
|
658
|
||||||||||||
|
Occupancy
|
461
|
543
|
1,391
|
1,417
|
||||||||||||
|
Data and item processing
|
292
|
276
|
857
|
821
|
||||||||||||
|
Accounting, marketing and legal fees
|
150
|
135
|
447
|
338
|
||||||||||||
|
Regulatory assessments
|
162
|
164
|
464
|
281
|
||||||||||||
|
Advertising and public relations
|
76
|
62
|
181
|
360
|
||||||||||||
|
Travel, lodging and entertainment
|
102
|
50
|
309
|
146
|
||||||||||||
|
Other
|
372
|
625
|
1,213
|
1,463
|
||||||||||||
|
|
||||||||||||||||
|
Total noninterest expense
|
4,779
|
4,584
|
14,198
|
13,060
|
||||||||||||
|
|
||||||||||||||||
|
Income Before Taxes
|
8,327
|
6,101
|
23,226
|
19,567
|
||||||||||||
|
Income tax expense
|
2,063
|
1,661
|
5,753
|
5,040
|
||||||||||||
|
Net Income
|
$
|
6,264
|
$
|
4,440
|
$
|
17,473
|
$
|
14,527
|
||||||||
|
|
||||||||||||||||
|
Earnings per common share - basic
|
$
|
0.69
|
$
|
0.48
|
$
|
1.93
|
$
|
1.53
|
||||||||
|
Diluted earnings per common share
|
0.69
|
0.48
|
1.92
|
1.53
|
||||||||||||
|
Weighted average common shares outstanding - basic
|
9,052,718
|
9,228,128
|
9,051,112
|
9,483,540
|
||||||||||||
|
Weighted average common shares outstanding - diluted
|
9,105,255
|
9,228,128
|
9,078,671
|
9,483,540
|
||||||||||||
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 first quarter results, which will be broadcast live over the Internet, on Thursday, October 21,
2021 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/2179/43192 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/2179/43192 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.
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
President & CEO
(405) 810-8600
Exhibit 99.2
BSVN Q3 2021EARNINGS RELEASEOctober 21, 2021
2 BSVN – Corporate Overview Shareholder alignment due to 70.3% insider ownership Continued focus on
organic growth in our geographic footprint, while pursuing strategic acquisitionsMultiple year recipient of annual Raymond James Community Bankers Cup award recognizing top 10% of community banks across the U.S. All data as of September 30,
2021, and income statement information is annualized unless indicated otherwise.(1) Core loans is a non-GAAP financial measure and is defined as total loans less PPP loans of $27.3 and $64.3 million for September 30, 2021 and 2020,
respectively Positioned in dynamic markets, with a commercial banking emphasis that delivers services via a branch-lite modelExperienced and talented bankers focused on high-touch personalized serviceHighly disciplined credit culture that
adheres to a robust risk management framework resulting in excellent credit quality and a history of low loan losses Consistently ranked by S & P Global Market Intelligence as one of the Top Performing Community Banks in the United States
3 Pro Forma YTD Net Income as of 2018 is a non-GAAP financial measure, see Appendix for reconciliation
to the most comparable GAAP measures for these metrics.Pre-tax pre-provision earnings (PPE) is a non-GAAP financial measure, see Appendix for reconciliation to the most comparable GAAP measure for this metric.Overall Return is defined as the
appreciation in tangible book value per share plus cash dividends paid per share - $1.34 as of September 30, 2021 Exceeding Expectations – The BSVN Promise A 3-Year Lookback From Our IPO (3)
4 Q3 2021 Overview Continued Strong Performance Consistent & Robust Growth Tangible book value
per share of $13.34, an increase of $2.13 or 19.00% compared to Q3 2020Core deposits continue to keep pace with our loan demandDuring the quarter, we grew total deposits by $9.8 million, with 53.5% centered in non-interest
bearing accountsContinued focus on growth – Bank7 to acquire Cornerstone Bank, announced October 7,2021, expected to close Q4 2021(4) All data as of September 30, 2021, unless indicated otherwise.Pre-tax pre-provision earnings (PPE) is a
non-GAAP financial measure, see Appendix for reconciliation to the most comparable GAAP measure for this metric.As of Q3 2021, the latest figures available. Peer group is defined as 184 exchange-traded banks nationwide with assets between $500
million and $5 billion. Source: S&P Global Market IntelligenceROAA and ROAE annualized for the three months ended September 30, 2021 and 2020For more information, please refer to Form 8-K Filed October 7, 2021 Double-digit PPE
Growth PPE(1) totaled $9.1 million for the quarter, an increase of $1.7 million or 23.48% compared to Q3 2020PPE to average assets is far greater than our peer group: 3.65% for BSVN vs. 1.42% peer average (2)
2.51% Pro Forma Pro Forma Reliable BSVN Performance Return on Average Assets (2)(3) Return on
Average Tangible Common Equity (2) (3) Dollars are in millionsFinancial data is as of or for the twelve months ended December 31 of each respective year and as of and for the nine months ended September 30, 2021.Efficiency ratio of 33.94% vs.
peer average of 62.65% as of Q2 2021. Peer group is defined as exchange-traded banks nationwide with assets between $500mm-$5bn (184 banks); Source: S&P Global Market Intelligence. See slide 13.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 (3) Despite the challenging rate environment, we continue to produce robust annualized ROAA and ROATCE - 2.29% and 20.8% as of Q3 2021, respectively.Industry-leading efficiency ratio(1) 5 5-year average:
2.25% 5-year average: 22.3% 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 nine months ended September 30, 2020 and 2021.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 PPE 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. 16.1% increase YoY Robust and Consistent Organic Growth PPE(2) Total Assets 6 $26.8 Pro Forma PPE grew 16.1% YoY- Our high level of PPE is achieved in part because of our strategy of having fewer,
but better FTEs, who excel at providing services and solutions utilizing our technology and processes, delivered through our branch-lite model Leveraging Our Employee Base(1) 3.56%Actual Pro Forma CAGR Since 2016: 14.1%
7 Exceptional Book Value Appreciation Tangible Book Value Per Share Dollars are in thousands, except
for per share data. CAGR since 2018 = 18.9% At Q3 2018, the quarter of our IPO – tangible book value per share was $7.92, compared to tangible book value of $13.34 for the current quarter, an increase of 68.5% Including cash dividends, BSVN
has produced a 85.4% overall return over the same period
Continued improvement in NPA levels after peaking in Q3 2020. Currently at 1.07% and concentrated 70% in
a single credit Underwriting practices withstood the pandemic induced economic stress with zero hospitality loans in the NPA bucket, and overall NPA’s are normalizingPandemic related downturn continues to fade and management is confident that
overall cycle NCO’s will be within our expected rangeSelectively active in the energy space, though overall reduction of energy portfolio concentration continues; decreasing from 18.60% of total loans at YE 2017 to 12.86% of total loans as of
September 30, 2021ALLL level remains acceptable as NPA levels have quickly reduced after peaking one year ago 8 Allowance for Loan Losses to Total Loans Asset Quality Financial data is as of or for the twelve months ended December 31 of
each respective year and as of or for the nine months ended September 30, 2021. (1) “Total Loans” excludes $44.9, $64.7, $48.4 and $27.3 million in PPP loans for YE 2020, Q1 2021, Q2 2021 and Q3 2021, respectively. With PPP loans included,
ratio is 1.15%, 1.26%, 1.32% and 1.01%, respectively. (1) Energy Portfolio as a % of Total Loans (1) Nonperforming Assets to Total Loans
Dollars are in millions Energy Portfolio Potential Exposure 9
Hospitality Loan Portfolio Detail 10 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 recessionsGeographically concentrated in TX (83%) and other markets with few remaining COVID restrictionsDiversified
lending to many reputable brands serving mostly low to moderate price pointsBuy, sell, and refinance activity has returned to the hospitality segment with 3 portfolio property sales and 1 refinance which paid off during Q3 2021 Dollars are in
millions. Hotel Portfolio Exposure by Class Hotel Portfolio Exposure by Flag
11 Hospitality Loan Portfolio Detail Consistent underwriting fundamentals with disciplined equity
requirements, debt coverage ratio requirements, personal recourse, and rapid amortization Portfolio Metrics – 33 Operating Properties Dollars are in millions except per room data. Data as of September 30, 2021.(1) per Source Strategies Inc.
2nd Quarter Factbook Significant rebound in revenue throughout Texas with Q2 2021 hospitality revenue exceeding Q2 2019(1) Concentrated primarily in “Drive-To” markets in the Dallas/Fort Worth metropolitan area, with most of the remaining
exposure also in TexasNo exposure to towns or cities that are heavily dependent on the energy space, or that are “gateway” cities that depend on airline traffic
Net Interest Margin Strength Financial data is as of or for the twelve months ended December 31 of each
respective year and as of or for the nine months ended September 30, 2021 and for the three months ended March 31, 2021, June 30 2021 and September 30, 2021.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 Despite a challenging yield curve, low-yielding PPP loans, and excess liquidity, our net interest margin continues to show strengthPPP loan
fee income recognized during the quarter totaled $297,000, with $533,000 remaining to be recognized; YTD PPP loan fees recognized totaled $2.04 million. 12
13 Earnings-driven cushion far exceeds regulatory capital minimums as illustrated over a two-year
period, consistent with DFAST parameters(1) Dollars are in millionsThe 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 $34.92 million extrapolated over two years. Earnings-driven Capital Shock-absorption
14 Income Statement as a Percentage of Average Assets Dollars are in thousandsPeer group is defined as
exchange-traded banks nationwide with assets between $500mm-$5bn (166 banks); Source: S&P Global Market Intelligence.Excludes one-time, non-cash executive stock transfer compensation expense of $11.8 million.As of Q2 2021, the latest data
available. (3) Peer Analysis : PPE to Average Assets
Deposit Composition Historical Deposit Growth Compound Annual Growth Rate = 13.9% Deposit Composition
as of September 30, 2021 84% of our loan customers also had a deposit relationship with us as of September 30, 2021Total organic core deposit growth YoY was $107.7 million, or 13.13%Core deposits totaled $928.0 million as of September 30, 2021
compared to $820.3 million as of September 30, 2020 Dollars are in millions.Financial data is as of or for the twelve months ended December 31 of each respective year and as of or for the nine months ended September 30, 2021.(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
16 For more information, please refer to Form 8-K Filed October 7, 2021 BSVN + WBI: A Look
Forward Growing Forward – Pro Forma Financial Highlights(1)
Appendix 17
18 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 nine months ended September 30, 2020 and 2021 of 25.8% and 24.8%,
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.
19 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 the most comparable GAAP measure for this metric. Ratios are based on Bank level financial information rather than consolidated information. At September 30,
2021, Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.50%, 13.74%, and 14.80% 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.
20 Non-GAAP Reconciliations
Loan Portfolio Distribution Dollars are in millions. Data as of June 30, 2021. Gross Loan Portfolio
Composition by Purpose Type 21
22 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.
23 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 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 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 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.