EX-99.2 3 ef20019967_ex99-2.htm EXHIBIT 99.2
Exhibit 99.2

 0  Q4 and Full Year 2023 Earnings Release  January 29, 2024 
 

 1  Earnings Release: Q4 2023 and Full Year  BSVN – Corporate Overview  Consistently ranked by S & P Global Market Intelligence as one of the Top Performing Community Banks in the United States  Reliable strength in ROATCE, well capitalized, with sufficient liquidity  Stable deposits, excellent liquidity, and a properly matched balance sheet   Disciplined credit culture that adheres to a robust risk management framework resulting in strong historical credit quality  Experienced and talented bankers focused on high-touch personalized service, targeting entrepreneurs and their commercial banking needs  Positioned in dynamic markets, with a commercial banking emphasis delivering services via a branch-lite model  Shareholder alignment due to 58% insider ownership  Dollars in thousands, all data as of December 31, 2023, unless indicated otherwise  To illustrate impact of certain Q4 2023 items, see slide 3.  BSVN adopted the CECL model (ASC326) on 1/1/2023 using the modified retrospective method. The presented allowance for periods prior to 1/1/2023 is under the incurred loss model (pre-ASC326).  Annual  Quarterly  2023  2022  % Change  Q4 2023  Actual  Q4 2023  Event Adj.(1)  Q3 2023  % Change  Total assets  $ 1,771,666  $ 1,584,169  11.8%  $ 1,771,666  $ 1,772,399  0.0%  Total loans  1,360,839  1,270,457  7.1%  1,360,839  1,392,777  -2.3%  Total deposits  1,591,391  1,431,400  11.2%  1,591,391  11,968  1,593,572  -0.1%  Net income  28,275  29,638  -4.6%  1,070  7,853  -86.4%  Pre-provision pre-tax earnings  58,384  43,852  33.1%  17,062  15,902  14,370  18.7%  Earnings per share  3.05  3.22  -5.2%  0.12  1.30  0.85  -86.4%  Net interest margin, ex. loan fees  4.60%  4.38%  5.0%  4.50%  27.7%  4.50%  0.0%  ROATCE  19.3%  23.9%  -19.5%  2.9%  20.1%  -85.7%  Allowance for credit losses / total loans (2)  1.45%  1.16%  24.8%  1.45%  1.48%  -2.4% 
 

 2  Earnings Release: Q4 2023 and Full Year  Q4 and Full Year Overview  Grew deposits $160.00 million YoY or 11.18% in spite of challenging macroeconomic conditions  Uninsured deposits represent 28.19% of total deposits, compared to 29.62% for Q4 2022; adjusted uninsured deposits represent 14.72% of total deposits (1)  The sum of cash plus unpledged securities and undrawn lines-of-credit equals $409.207 million, which significantly  exceeds adjusted uninsured deposits of $234 million(1), a 1.75x coverage  Stable Quality Deposits & Liquidity  Dollars in thousands, all data as of December 31,2023, unless indicated otherwise  See slide 4 for adjusted uninsured deposit calculation  Net of $901.21 million of gross loans that reprice daily, and $85.80 million of those loans that are at their ceiling  Loan growth and expense discipline drove our PPE to a record $58.38 million, a 33.14% increase YoY  We continue to benefit from a low efficiency ratio of 36.07% for the year  Record PPE & Low Efficiency Ratio  Strong earnings and low dividend payout ratio builds capital rapidly  Capital ratios remain strong and exceed the “well capitalized” guidelines  CET 1 Capital: 11.49%  Tier 1 Leverage: 9.54%  Debt free Balance Sheet  No HTM securities  Prudent Capital Management  Proven ability to successfully manage NIM in varying interest rate environments as we continue to operate within historical ranges  $1.04 billion or 76.56% of loans reprice in 1 year or less, with  $815.41 million(2) or 59.82% repricing daily  AOCI is only $6.15 million; the average investment portfolio duration is ~2.0 years, with $100 million of U.S. Treasuries or 56.34% of the total investment portfolio maturing in Q1 of 2024  Proven & Consistent Balance Sheet Management 
 

 3  Earnings Release: Q4 2023 and Full Year  Q4 Adjusted Financials  Dollars in thousands, all data as of December 31,2023, unless indicated otherwise  Adjustments present Non-GAAP measurements. For other Non-GAAP measurements presented throughout the presentation, see reconciliations in the appendix on slides 20 and 21  Diluted earnings per share  Adjusted Financials are provided to illustrate the negative impact to BSVN’s earnings for events related to a single loan relationship:  A partial loan charge-off of $16.50 million with a remaining specific reserve of  $2 million, quarter-to-date provision expense of $15.50 million  Acquired oil and gas assets related to this loan relationship. The corresponding Q4 oil and gas operations resulted in gross revenues of $6.00 million, gross expenses of $4.84 million, and pre-tax income of  $1.16 million  PERFORMANCE  Earnings per share(2)  $ 0.12  $ 1.18  $ 1.30  RETURN ON AVERAGE  Tangible common equity  2.86  24.88  27.75  (Do llars in thousands, except per share data)  Dec 31, 2023 Adjustments  Adjusted Dec 31, 2023  INCOME STATEMENT DATA  Provision for credit losses 15,500 (15,500) -  Total noninterest income 6,769 (6,000) 769  Total noninterest expense 11,005 (4,840) 6,165  Provision for income taxes 491 3,442 3,933  Pre-tax net income 1,561 14,340 15,901  Net income 1,070 10,898 11,968  For the Three Months Ended (1) 
 

 4  Earnings Release: Q4 2023 and Full Year  Liquidity and Asset Sensitivity  Dollars in thousands, all data as of December 31,2023, unless indicated otherwise  (1) Includes $901.24 million of loans that reprice daily, with $85.80 million of those loans being at their ceiling  Asset Sensitivity  < 1 year  1 to 2 years  2 to 3 years  > 3 years  Total  Earning Assets:  Cash and cash equivalents, and interest-bearing time deposits  $  197,476 $  1,245 $  - $  198,721  - $  Gross Loans  110,747  74,980  133,791  1,363,096  Securities  105,669  4,634  7,172  52,012  169,487  Total  $ 1,346,723 $  116,626 $  82,152 $  185,803 $ 1,731,304  % of Total  77.79%  6.74%  4.75%  10.73%  100.00%  1,043,578(1)  Uninsured deposits total $448.66 million or 28.19% of total deposits; however, after deductions for insider owned, and also collateralized deposits, adjusted uninsured deposits are $234 million, which is 14.72% of total deposits  Cash, securities, and undrawn lines of credit totaled  $409.21 million, providing a 1.75x coverage of adjusted uninsured deposits  Uninsured Deposits | Cash/Liquidity  Q4 2023  Uninsured Deposits  448,659  $  Less: Insider Deposits > $1 Million  (96,230)  Less: Collateralized Deposits  (118,152)  Adjusted Uninsured Deposits  234,277  $  Q4 2023  198,721  Cash and cash equivalents, and interest-bearing time deposits $  Undrawn Lines-of-Credit  159,151  Unpledged Securities  51,335  Cash/Available Liquidity  409,207  $ 
 

 5  Earnings Release: Q4 2023 and Full Year  Deposit Composition  Deposit Growth & Composition  Core and non-interest bearing accounts have shown steady growth(1)  CAGR since 2019: 16.0%  Dollars in millions  (1) Includes interest bearing and non-interest bearing demand deposit, money market, and savings accounts  28.9% 27.2%  30.1%  30.7%  30.3%  71.1%  72.8%  69.9%  69.3%  69.7%  $757.5  $905.5  $1,217.5  $1,429.3  $1,591.4  2019 2020 2021 2022 2023  Noninterest-bearing deposits  Interest-bearing deposits  Noninterest-bearing demand  $482.3 / 30.3%  NOW deposits  $451.5 / 28.4%  Money Markets  $250.7 / 15.8%  Savings  $150.1 / 9.4%  Time deposits < $250K  $169.7 / 10.7%  Time deposits > $250K  $87.1 / 5.5% 
 

 6  Earnings Release: Q4 2023 and Full Year  Consistent Net Interest Margin  Financial data is for the twelve months ended of each respective year and as of the three months ended September 30, 2023 and December 31, 2023  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  4.78%  4.48%  4.38%  4.38%  4.60%  4.50%  4.50%  0.56%  0.53%  0.74%  0.44%  0.37%  0.37%  0.35%  5.35%  5.01%  5.12%  4.82%  4.97%  4.87%  4.85%  2019  2020  2021  2022  2023  Q3 2023  Q4 2023  Loan Fee Income Contribution  Net interest margin continues to show strength due to disciplined loan pricing, a healthy amount of non-interest bearing deposits, and our asset sensitive balance sheet 
 

 7  Earnings Release: Q4 2023 and Full Year  Diluted Earnings Per Share  5.22% Decrease  $2.05  $2.55  $3.22  $3.05  $0.50  $-  $1.50  $1.00  $2.00  $2.50  $3.00  $4.00  $3.50  2023  $1.96  Pro Forma  $0.81  20191 2020 2021 2022  Year-over-year EPS:  $3.05 for 2023, a 5.22% decrease from 2022  No share repurchases during the year  Tangible Book Value Per Share  CAGR since 2018: 15.5%  $8.49  $9.78  $11.69  $12.93  $14.69  $17.49  $14.00  $12.00  $10.00  $8.00  $6.00  $4.00  $2.00  $-  $20.00  $18.00  $16.00  2018 2019 2020 2021 2022 2023  Consistently strong earnings increased TBV despite three factors:  $0.85 per share paid for an all-cash acquisition in Q4 2021  $0.67 per share AOCI unrealized loss from investments  $2.67 per share paid in cash dividends, since IPO  Consistent Capital Accumulation / Strong Compounder  Dollars are in thousands, except for per share data  (1) Pro Forma 2019 is a non-GAAP financial measure which adds back the one-time, extraordinary compensation expense related to the non-cash executive stock transaction that took place during the period See 2019 Pro Forma Net Income reconciliation table for detailed calculation of this measure  YE 2018  Q4 2023  % Change  $ Change  Total tangible shareholders’ equity  $ 86,471  $ 160,837  86.0%  $ 74,366  Shares outstanding  10,187.5  9,197.7  -9.7%  (989.8)  Tangible book value per share  $ 8.49  $ 17.49  106.0%  $ 9.00  Cash dividends per share since IPO as a % of 2018 TBV per share 31.5% $ 2.67  Overall Increase:  137.5%  $ 11.67 
 

 8  Earnings Release: Q4 2023 and Full Year  Return on Average Tangible Common Equity (1)(2)  5 year average: 20.7%  19.14%  20.13%  23.92%  19.25%  5.00%  0.00%  15.00%  10.00%  20.00%  30.00%  25.00%  2019  2020  2021  2022  2023  Efficiency Ratio (2)  5 year average: 37.3%  65.36%  36.03%  36.76%  39.29%  36.07%  30.00%  20.00%  10.00%  0.00%  50.00%  40.00%  60.00%  80.00%  70.00%  2019  2020  2021  2022  2023  Return on Average Assets (1)(2)  5 year average: 2.1%  2.03%  2.21%  2.02%  1.68%  1.00%  0.50%  0.00%  1.50%  2.00%  2.50%  3.00%  2019  2020  2021  2022  2023  Reliable Top Performer  Financial data is as of or for the twelve months ended December 31 of each respective  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  Source: S&P Global Market Intelligence.  20.90%  Pro Forma  2.51%  11..0033%%  Pro Forma  ROATCE remained strong, despite the negative event disclosed in Q3 and Q4, and outperformed 89% of all public banks reported through Q3(2)  Performance ratios remain strong and within historical ranges, despite a provision expense of $15.50 million during the quarter  Pro Forma  88..6610%%  38.83% 
 

 9  Earnings Release: Q4 2023 and Full Year  Consistently Outperforming Peers  1.50%  1.47%  1.51%  1.47%  1.50%  1.13%  3.36%  3.29%  3.29%  3.44%  2.99%  3.35%  0.50%  0.00%  1.00%  2.00%  1.50%  2.50%  3.00%  4.00%  3.50%  2018  2019  2020  2021  2022  Q3 2023  Peers  BSVN  Income Statement as a Percentage of Average Assets  PPE to Average Assets vs Peers  Dollars are in thousands  Peer group is defined as exchange-traded banks nationwide with assets between $500mm-$5bn (145 banks); Source: S&P Global Market Intelligence.  Excludes one-time, non-cash executive stock transfer compensation expense of $11.8 million.  As of Q3 2023, the latest data available.  2019  Peer Group Median(1)  BSVN(2)  2020  Peer Group Median(1)  BSVN  2021  Peer Group Median(1)  BSVN  2022  Peer Group Median(1)  BSVN  Q3 2023(3)  Peer Group Median(1)  BSVN  Net Interest Income  3.41%  5.28%  3.19%  4.97%  3.09%  5.09%  3.25%  4.74%  2.93%  4.84%  Pre-provision pre-tax earnings  1.47%  3.36%  1.50%  3.29%  1.45%  3.44%  1.49%  2.99%  1.13%  3.35%  Provision Expense  0.09%  0.00%  0.29%  0.56%  0.02%  0.40%  0.08%  0.31%  0.05%  0.97%  Net Income  1.09%  2.51%  0.98%  2.03%  1.13%  2.21%  1.09%  2.02%  0.80%  1.82%  ROATCE  10.79%  20.92%  10.47%  19.14%  13.45%  20.13%  14.09%  23.92%  10.54%  20.06%  Net Interest Margin  3.67%  5.35%  3.41%  5.01%  3.33%  5.12%  3.47%  4.82%  3.12%  4.87%  Efficiency Ratio  63.72%  38.26%  62.26%  36.03%  61.82%  36.76%  61.05%  39.30%  66.92%  33.61% 
 

 10  Earnings Release: Q4 2023 and Full Year  Maximizing Employee Base (3)  $11.1  $11.1  $12.9  $14.4  2.08%  1.95%  1.96%  1.99%  5.00%  4.50%  4.00%  3.50%  3.00%  2.50%  2.00%  1.50%  1.00%  0.50%  0.00%  $-  $4.0  $2.0  $6.0  $16.0  $14.0  $12.0  $10.0  $8.0  2019 2020  2021  Assets / FTE Employee (Millions)  2022 2023  Noninterest expense to average assets  PPE(1)  33.14% increase  18.73% increase  Strength in Core Earnings  $43.9  $58.4  $14.4  $17.1  $10.0  $-  $20.0  $30.0  $40.0 $35.1  $31.2  $60.0  $50.0  $70.0  2019  2020  2021  2022  2023 Q3 2023 Q4 2023  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 three months ended September 30, 2023 and December 31, 2023  Pre-provision, pre-tax earnings (“PPE”) is a non-GAAP financial measure. See appendix for reconciliation to their most comparable GAAP measure  Pro Forma 2019 is a non-GAAP financial measure which adds back the one-time, extraordinary compensation expense related to the non-cash executive stock transaction that took place during the period. See 2019 Pro Forma Net Income reconciliation table for detailed calculation of this measure  Pro Forma noninterest expense to average assets is a non-GAAP financial measure. See appendix for reconciliation to their most comparable GAAP measure  $o1r5m.1  Pro  F a  $26.8  $15.1  Record PPE:  PPE of $58.38 million, an increase of 33.14% as compared to 2022  Strong PPE was driven by:  Disciplined loan pricing  Rising rates and our asset sensitive balance sheet  Expense discipline  We achieve maximum productivity by:  Utilizing a branch-lite model  Hiring fewer but better FTEs  Operating an efficient delivery system with a strict adherence to processes  3.56%  Actual  1.85%  Pro Forma  $12.7  2  2 
 

 11  Earnings Release: Q4 2023 and Full Year  $280.8  $338.8  $469.3  $518.9  $540.4  $167.0  $194.0  $199.9  $244.3  $298.5  $158.6  $204.3  $245.1  $327.6  $334.6  $102.1  $102.0  $116.7  $182.8  $190.5     $708.6     $839.1   $1,273.6  $1,031.0   $1,364.0  $0  $200  $400  $600  $800  $1,000  $1,200  $1,400  2019  2020  2021  2022  2023  Other Hospitality C&I Energy  Loan Portfolio Trends  CAGR Since 2019: 17.8%  Loan Portfolio Trends – Selected Categories  Dollars are in millions  14.0%  24.5%  21.9%  39.6% 
 

 12  Earnings Release: Q4 2023 and Full Year  Loan Portfolio Distribution  Dollars are in millions. Data as of December 31, 2023  1-4 family (commercial purpose)  $100.5 / 7.4%  Owner-occupied CRE  $110.6 / 8.1%  Hospitality - operational properties CRE  $277.6 / 20.4%  Non-owner-occupied CRE  $130.3 / 9.6%  Energy - exploration & production  $126.8 / 9.3%  Energy - mineral / royalty interest  $10.6 / 0.8%  Energy - service companies  $43.0 / 3.2%  Energy - midstream  $10.1 / 0.7%  Commercial and industrial  $334.6 / 24.5%  PPP Loans  $2.0 / 0.1%  Consumer  $20.2 / 1.5%  Agricultural Non-Farmland  $25.4 / 1.9%  Agricultural Farmland  $41.1 / 3.0%  Hospitality construction  $20.9 / 1.5%  Commercial construction  $53.7 / 3.9%  1-4 family construction  $56.6 / 4.1%  Loan Portfolio Selected Categories  Industry  YE 2023  % of Total  Loans  YE 2022  % of Total  Loans  Commercial & Industrial  $ 334.60  24.53%  $ 327.58  25.72%  Hospitality  298.50  21.88%  244.27  19.18%  Energy  190.50  13.97%  182.83  14.36% 
 

 13  Earnings Release: Q4 2023 and Full Year  Diverse CRE Portfolio  Dollars are in millions. Data as of December 31, 2023  Diverse commercial real estate lending activity in Texas and Oklahoma with an emphasis in the DFW, Oklahoma City, and Tulsa metros  Minimal office and retail loans with over- weighting in each segment to owner- occupied properties  No office exposure to downtown metropolitan locations  Office Loan Average Size:  Owner Occupied — $0.69 million  Non-Owner Occupied — $0.93 million  Construction lending activity primarily in Oklahoma City and the Dallas metroplex with an emphasis on entry level homes with established homebuilders  Limited lot and development lending activity  Hospitality niche managed by seasoned professionals with proven track record through various economic cycles  CONSTRUCTION  OWNER OCCUPIED  Industrial  $46.2 / 6.2%  Office  $38.2 / 5.1%  Retail  $19.9 / 2.7%  Restaurant  $5.5 / 0.7%  Other  $0.9 / 0.1%  1-4 Family - Commercial  $56.6 / 7.5%  1-4 Family Lots  $22.5 / 3.0%  Hospitality  $20.9 / 2.8%  Comm Lots  $7.5 / 1.0%  Raw Land  $10.0 / 1.3%  Industrial  $1.8 / 0.2%  Office  $2.4 / 0.3%  Retail  $2.7 / 0.4%  Restaurant  $2.1 / 0.3%  Mulltifamily  $2.7 / 0.4%  Other  $2.0 / 0.3%  Hospitality  $277.7 / 37.0%  1-4 Family - Commercial  $97.6 / 13.0%  Multifamily  $19.1 / 2.5%  Retail  $65.5 / 8.7%  Office  $21.3 / 2.8%  Restaurant  $10.0 / 1.3%  Industrial  $9.9 / 1.3%  Other  $7.5 / 1.0% 
 

 14  Earnings Release: Q4 2023 and Full Year  Hotel Portfolio by Class  Midscale  $155.52 / 52.1%  Upper Midscale  $70.12 / 23.5%  Upscale  $0.00 / 0.0%  Luxury  $0.00 / 0.0%  Economy  $72.91 / 24.4%  Hotel Portfolio by Location  3.56%  Actual  Hospitality Loan Portfolio Detail  Dollars are in millions, data as December 31, 2023  No historical NCOs in the hospitality segment  Blue collar portfolio that is well-protected by the “cycle-down” effect of a recession  Geographically concentrated in TX (85%) and other markets with favorable economic conditions  Loans personally guaranteed by experienced owner/operators with operating history spanning decades of economic cycles  Diversified lending to many reputable brands  Consistent underwriting fundamentals with disciplined equity requirements, debt coverage ratio requirements, personal recourse, and rapid amortization  Average loan size of $4.95 million  Hotel Portfolio by Location  73.65%  11.14%  15.21%  0%  20%  40%  60%  80%  100%  Outstanding Balance  Dallas / Ft. Worth Metro Area  Other Texas Metros  Other 
 

 15  Earnings Release: Q4 2023 and Full Year  Strategic Growth in Dynamic Markets  Dollars are in millions  2014  2015  2016  2017  2018  2019  2020  2021  2022  2023  LPO opened in Tulsa,  OK, full-service branch opened in Frisco, TX  Oklahoma acquisition  Full-service branch opened in Tulsa, OK  Completed IPO  Full-service branch opened in Irving, TX  LPO opened in Irving, TX  Kansas acquisition  Total Assets  CAGR Since 2014: 15.6%  $479.5  $563.5  $613.8  $703.6  $770.5  $866.4  $1,016.7  $1,350.5  $1,584.2  $1,771.7  $400.0  $200.0  $-  $600.0  $800.0  $1,000.0  $1,200.0  $1,400.0  $1,600.0  $1,800.0 
 

 16  Earnings Release: Q4 2023 and Full Year  Earnings-driven Capital Shock-absorption  Earnings-driven cushion far exceeds regulatory capital minimums as illustrated over a two-year period, consistent with DFAST parameters(1)  Dollars are in thousands  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 $58.4 million extrapolated over two years  Regulatory Minimum  Target Ratios  Q4 2023 Capital  Ratios  Excess Capital to Target Excess Capital to Target Ratio Expressed in %(2) Ratio Expressed in $(3)  Add: PPE Cushion(4)  Total Shock Absorption Ability Prior to Hitting Reg Minimums  Tier 1 Leverage  5.00%  9.54%  90.85%  $ 79,919  +  $ 116,768  =  $ 196,687  CET1  7.00%  11.49%  64.16%  $ 65,351  +  $ 116,768  =  $ 182,119  Tier 1 Risk Based Capital  8.50%  11.49%  35.19%  $ 43,525  +  $ 116,768  =  $ 160,293  Total Risk Based Capital  10.50%  12.74%  21.36%  $ 32,636  +  $ 116,768  =  $ 149,404 
 

 17  Appendix 
 

 18  Earnings Release: Q4 2023 and Full Year  Bank7 Corp. Financials   BSVN adopted the CECL model (ASC326) on 1/1/2023 using the modified retrospective method. The presented allowance for periods prior to 1/1/2023 is under the incurred loss model (pre-ASC326).  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 23 of this presentation  BALANCE SHEET DATA  Cash and cash equivalents  $ 181,042  $ 169,490  $ 109,115  $ 181,042  $ 109,115  $ 204,852  $ 153,901  $ 117,128  Interest-bearing time deposits in other banks  17,679  17,182  5,474  17,679  5,474  3,237  16,412  30,147  Securities available for sale, at fair value  169,487  167,138  173,165  169,487  173,165  84,808  -  -  Nonmarketable equity securities  1,283  1,251  1,209  1,283  1,209  1,202  1,172  1,100  Total loans  1,360,839  1,392,777  1,270,456  1,360,838  1,270,457  1,028,401  836,613  707,304  Allowance for credit losses (1)  19,691  20,649  14,734  19,691  14,734  10,316  9,639  7,846  Total assets  1,771,666  1,772,399  1,584,169  1,771,666  1,584,169  1,350,549  1,016,669  866,392  Interest-bearing deposits  1,109,042  1,112,745  989,891  1,109,042  989,891  850,766  658,945  538,262  Noninterest-bearing deposits  482,349  480,827  439,409  482,349  439,409  366,705  246,569  219,221  Total deposits  1,591,391  1,593,572  1,431,400  1,591,391  1,431,400  1,217,471  905,514  757,483  Total shareholders’ equity  170,326  167,907  144,100  170,326  144,100  127,408  107,319  100,126  SHARES OUTSTANDING AT END OF PERIOD  Earnings per share (basic)  $ 0.12  $ 0.86  $ 0.92  $ 3.09  $ 3.26  $ 2.56  $ 2.05  $ 0.81  $ 1.96  Earnings per share (diluted)  0.12  0.85  0.91  3.05  3.22  2.55  2.05  0.81  1.96  Dividends per share  0.21  0.21  0.16  0.74  0.52  0.45  0.41  0.60  Book value per share  18.52  18.28  15.78  18.52  15.78  14.04  11.87  9.96  Tangible book value per share (2)  17.49  17.24  14.69  17.49  14.69  12.93  11.69  9.78  Weighted average common shares outstanding–basic  9,188,888  9,158,027  9,118,728  9,161,565  9,101,523  9,056,117  9,378,769  10,145,032  10,192,930  Weighted average common shares outstanding–diluted  9,274,960  9,273,595  9,232,333  9,264,307  9,204,716  9,091,536  9,379,154  10,147,311  10,195,209  Shares outstanding at end of period  9,197,696  9,184,975  9,131,973  9,197,696  9,131,973  9,071,417  9,044,765  10,057,506  10,206,931  Dec 31, 2023 Sep 30, 2023  Dec 31, 2022  2023  2022  For the Year Ended December 31  2021 2020  2019  2019  (Dollars in thousands, except per share data)  Pro Forma(3)  INCOME STATEMENT DATA  Total interest income $ 32,401 $ 31,722 $ 25,462 $ 121,544 $ 78,749 $ 56,289 $ 53,314 $ 51,709  Total interest expense 11,104 10,976 5,081 38,998 9,322 3,053 6,153 9,516  Provision for credit losses (1) 15,500 4,159 1,625 21,145 4,468 4,175 5,350 -  Total noninterest income 6,769 1,007 732 9,242 2,939 2,250 1,665 1,308  Total noninterest expense 11,005 7,390 8,129 33,420 28,641 20,397 17,592 28,432 $ 16,636  Provision for income taxes 491 2,351 2,973 8,948 9,619 7,755 6,618 6,844 6,836  Pre-tax net income 1,561 10,204 11,359 37,223 39,257 30,914 25,884 15,069 26,866  Net income 1,070 7,853 8,386 28,275 29,638 23,159 19,266 8,225 20,030  For the Three Months Ended 
 

 19  Earnings Release: Q4 2023 and Full Year  Bank7 Corp. Performance Ratios  Annualized  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 December 31, 2023, Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 9.54%, 11.49%, and 12.74% 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 23 of this presentation  Dec 31, 2023  Sep 30, 2023  Dec 31, 2022  2023  2022  2021  2020  2019  2019  (Dollars in thousands, except per share data)  Pro Forma(5)  RETURN ON AVERAGE(1)  Assets  0.24%  1.82%  2.15%  1.68%  2.02%  2.21%  2.03%  1.03%  2.51%  Tangible common equity  2.86  20.06  25.78  19.25  23.92  20.13  19.14  8.61  20.92  Shareholders’ equity  2.69  18.89  24.04  18.06  22.13  26.41  18.82  8.44  20.53  Yield on earning assets  7.38  7.44  6.56  7.31  5.46  5.42  5.67  6.55  Yield on loans  8.36  8.52  7.48  8.35  6.51  6.16  6.37  7.58  Yield on loans excluding fees  7.91  8.06  7.02  7.89  5.96  5.30  5.76  6.88  Cost of funds  2.77  2.83  1.43  2.57  0.70  0.33  0.73  1.37  Cost of int bearing deposits  3.99  3.90  2.11  3.60  1.05  0.48  1.05  1.89  Cost of total deposits  2.77  2.83  1.43  2.57  0.70  0.33  0.73  1.37  Net interest margin  4.85  4.87  5.25  4.97  4.82  5.12  5.01  5.35  Net interest margin excluding loan fees  4.50  4.50  4.87  4.60  4.38  4.38  4.48  4.78  Noninterest expense to average assets  2.48  1.71  2.08  1.99  1.96  1.95  1.85  3.56  2.08  Efficiency ratio (2)  38.94  33.61  38.14  36.07  39.29  36.76  36.03  65.36  38.26  Loan to deposit ratio  85.51  87.40  88.89  85.51  88.89  84.47  92.39  93.38  Liquidity ratio  16.05  20.85  16.17  16.05  16.17  28.42  25.48  19.22  CREDIT QUALITY RATIOS  Nonperforming assets to total assets  1.64%  2.88%  1.13%  1.64%  1.13%  0.77%  1.63%  0.38%  Nonperforming assets to total loans and OREO  2.13  3.67  1.42  2.13  1.42  1.01  1.98  0.47  Nonperforming loans to total loans  2.13  3.67  1.42  2.13  1.42  1.01  1.98  0.47  Allowance for credit losses to nonperforming loans  67.98  40.41  81.95  67.98  81.95  99.37  58.29  235.47  Allowance for credit losses to total loans  1.45  1.48  1.16  1.45  1.16  1.00  1.15  1.11  Net charge-offs to average loans  4.80  0.00  0.01  1.26  0.01  0.39  0.43  (0.00)  CAPITAL RATIOS  Total shareholders’ equity to total assets  9.61%  9.47%  9.10%  9.61%  9.10%  9.43%  10.56%  11.56%  Tangible equity to tangible assets (3)  9.13  7.88  8.52  9.13  8.52  8.75  10.42  11.37  Tier 1 leverage ratio (4)  9.54  9.75  9.18  9.54  9.18  10.55  10.78  11.65  Tier 1 risk-based capital ratio (4)  11.50  11.39  11.26  11.50  11.26  11.53  13.51  14.28  Total risk-based capital ratio (4)  12.75  12.64  12.42  12.75  12.42  12.54  14.75  15.42  For the Three Months Ended  For the Year Ended December 31 
 

 20  Earnings Release: Q4 2023 and Full Year  Non-GAAP Reconciliations  Dec 31, 2023  Sep 30, 2023  Dec 31, 2022  2023  2022  2021  2020  2019  (Dollars in thousands, except per share data)  TANGIBLE SHAREHOLDERS’ EQUITY  Total shareholders equity  $ 170,326  $ 167,907  $ 144,100  $ 170,326  $ 144,100  $ 127,408  $ 107,319  $ 100,126  Goodwill and other intangibles  (9,489)  (9,565)  (9,939)  (9,489)  (9,939)  (10,122)  (1,583)  (1,789)  Tangible shareholders’ equity  160,837  158,342  134,161  160,837  134,161  117,286  105,736  98,337  TANGIBLE ASSETS  Total assets  $ 1,771,666  $ 1,772,399  $ 1,584,169  $ 1,771,666  $ 1,584,169  $ 1,350,549  $ 1,016,669  $ 866,392  Tangible assets  1,762,177  1,762,834  1,574,230  1,762,177  1,574,230  1,340,427  1,015,086  864,603  AVERAGE TANGIBLE COMMON EQUITY  Average shareholders equity  $ 157,719  $ 164,964  $ 135,968  $ 156,551  $ 144,097  $ 117,053  $ 102,359  $ 97,431  Add back: average net unrealized loss on debt securities  8,525  8,680  10,198  8,570  6,682  -  -  -  Less: average goodwill and other Intangibles  (9,539)  (9,616)  (9,441)  (9,688)  (9,995)  (2,030)  (1,684)  (1,893)  Average tangible common equity  156,706  164,028  136,725  155,432  140,784  115,023  100,675  95,538  End of period common shares outstanding  9,197,696  9,184,975  9,131,973  9,197,696  9,131,973  9,071,417  9,044,765  10,057,506  Book value per share  18.52  18.28  15.78  18.52  15.78  14.04  11.87  9.96  Tangible book value per share  17.49  17.24  14.69  17.49  14.69  12.93  11.69  9.78  Total shareholders’ equity to total assets  9.61%  9.47%  9.10%  9.61%  9.10%  9.43%  10.56%  11.56%  Tangible shareholders’ equity to tangible assets  9.13%  8.98%  8.52%  9.13%  8.52%  8.75%  10.42%  11.37%  LOAN INTEREST INCOME (Excluding loan fees):  Total loan interest income, including fees  $ 28,727  $ 28,880  $ 23,806  $ 109,843  $ 74,403  $ 55,768  $ 52,450  $ 48,200  Loan fee income  (1,550)  (1,579)  (1,471)  (6,099)  (6,278)  (7,787)  (5,035)  (4,443)  Loan interest income excluding loan fees  27,177  27,301  22,335  103,744  68,125  47,981  47,415  43,757  Average total loans  $ 1,362,533  $ 1,344,038  $ 1,262,864  $ 1,315,578  $ 1,143,380  $ 905,804  $ 823,228  $ 636,274  Yield on loans  8.36%  8.52%  7.48%  8.35%  6.51%  6.16%  6.37%  7.58%  Yield on loans (excluding loan fee income)  7.91%  8.06%  7.02%  7.89%  5.96%  5.30%  5.76%  6.88%  NET INTEREST MARGIN (Excluding loan fees):  Net interest income  $ 21,297  $ 20,746  $ 20,381  $ 82,546  $ 69,427  $ 53,236  $ 47,161  $ 42,193  Loan fee income  (1,550)  (1,579)  (1,471)  (6,099)  (6,278)  (7,787)  (5,035)  (4,443)  Net interest income excluding loan fees  19,747  19,167  18,910  76,447  63,149  45,449  42,126  37,750  Average earning assets  $ 1,742,068  $ 1,691,463  $ 1,539,698  $ 1,661,860  $ 1,441,140  $ 1,038,773  $ 940,890  $ 789,009  Net interest margin  4.85%  4.87%  5.25%  4.97%  4.82%  5.12%  5.01%  5.35%  Net interest margin (excluding loan fee income)  4.50%  4.50%  4.87%  4.60%  4.38%  4.38%  4.48%  4.78%  Less: goodwill and other Intangibles  (9,489)  (9,565)  (9,939)  (9,489)  (9,939)  (10,122)  (1,583)  (1,789)  For the Three Months Ended  For the Year Ended December 31 
 

 21  Earnings Release: Q4 2023 and Full Year  Non-GAAP Reconciliations -- Continued  Dec 31, 2023  Sep 30, 2023  Dec 31, 2022  2023  2022  2021  2020  2019  (Dollars in thousands, except per share data)  PRE-PROVISION PRE-TAX EARNINGS  Net Income  $ 1,070  $ 7,853  $ 8,386  $ 28,275  $ 29,638  $ 23,159  $ 19,266  $ 8,225  Income Tax Expense  491  2,351  2,973  8,948  9,619  7,755  6,618  6,844  Pre-tax net income  1,561  10,204  11,359  37,223  39,257  30,914  25,884  15,069  Add back: Provision for credit losses  15,500  4,159  1,625  21,145  4,468  4,175  5,350  -  Add back: (Gain)Loss on sales/calls of AFS debt securities  1  7  -  16  127  -  -  -  Pre-provision pre-tax earnings  17,062  14,370  12,984  58,384  43,852  35,089  31,234  15,069  For the Three Months Ended  For the Year Ended December 31 
 

 22  Earnings Release: Q4 2023 and Full Year  Available-for-Sale Securities Portfolio  Investment Portfolio  Dollars are in millions.  All mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities.  Total investment securities of $169.5 million as of December 31, 2023  Weighted Average Duration: 2.0 Years  Book Yield: 1.75%  Municipal - Taxable  $7.26 / 4.3%  Municipal - Tax Exempt  $18.60 / 11.0%  U.S. Treasuries  $104.66 / 61.7%  Mortgage Backed Securities  $34.50 / 20.4%  U.S. Federal Agencies  $0.13 / 0.1%  Corporate  $4.34 / 2.6% 
 

 23  Earnings Release: Q4 2023 and Full Year  2019 Pro Forma Net Income Reconciliation  On September 5, 2019, the largest shareholders, 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.  PRO FORMA NET INCOME  Total Interest Income  $ 51,709  Total Interest Expense  9,516  Net Interest Margin  42,193  Provision for Loan Losses  $ -  Noninterest Income  $ 1,308.00  Noninterest Expense  $ 28,432.00  Less: Stock Transfer Comp. Expense  (11,796)  Pro Forma Noninterest Expense  16,636  Pro Forma Pre-Tax Income  $ 26,865.00  (Do llars in thousands)  For the Year  Ended: Dec. 31, 2019 
 

 24  Earnings Release: Q4 2023 and Full Year  Legal Information and Distribution  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. 
 

 25