EX-99.2 3 brhc20056101_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2
Q2 2023 Earnings Release BSVN July 20, 2023

BSVN – Corporate Overview Consistently ranked by S & P Global Market Intelligence as one of the Top Performing Community Banks in the United States Stable deposits and a strong cash position, and less dependent on uninsured deposits when compared to the industry average(3) Disciplined credit culture that adheres to a robust risk management framework resulting in excellent credit quality and a history of low loan losses 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 June 30,2023, unless indicated otherwise Adjusted equity within calculation to back-out the impact of the tax effected unrealized loss included in AOCI. See slide 21 for the indicated amounts. 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). See slide 4 for uninsured deposit comparison to industry average

Q2 Overview Total deposits increased $16.67 million or 1.12% as compared to Q1 2023. Uninsured deposits represent 22.17% of total deposits, as compared to the industry average of 34.00%(1) The sum of cash plus unpledged securities, and our undrawn lines-of-credit equals $506.69 million, which exceeds our adjusted uninsured deposits of $247.93 million(2), providing a 2.04X coverage Stable Quality Deposits & Liquidity Dollars in thousands, all data as of June 30,2023, unless indicated otherwise Based on Call Report data; Source: S&P Global; See slide 4 See slide 4 for adjusted uninsured deposit calculation All U.S. Banks/Thrifts; Must be traded on a major exchange; As of Q1 2023; Source: S&P Global; See slide 3 Disciplined loan pricing combined with our consistent net interest margin and low efficiency ratio drove record PPE and EPS Record EPS results were achieved through core earnings with no share repurchases Record PPE, Net Income, and EPS Our strong earnings and low dividend payout ratio builds capital rapidly Capital ratios remain robust and exceed the “well capitalized” guidelines CET 1 Capital: 11.88% an increase of 54 bps Tier 1 Leverage: 9.71% an increase of 23 bps Debt free Balance Sheet No HTM securities Prudent Capital Management $914.36 million or 77.05% of loans reprice in 1 year or less, with $879.97 million or 68.78% repricing daily Cash to total assets was 11.68% at quarter end, as compared to the industry average of 5.78%(3); however, the sum of our cash plus unpledged securities to total assets was 20.68% at quarter end; securities are available for immediate liquidation if necessary Minimal AOCI impact; the average duration of our investment portfolio is ~2.4 years, with $100.00 million of U.S. Treasuries or 55.27% maturing in February of 2024 Proven & Consistent Balance Sheet Management

Liquidity and Asset Sensitivity Dollars in thousands, all data as of June 30,2023, unless indicated otherwise Based on Call Report data for public banks; Source: S&P Global. See slide 4 for adjusted uninsured deposit reconciliation Includes $879.97 million of loans that reprice daily, with $78.28 million of those loans being at their ceiling Asset Sensitivity Comparative Banking Industry Data (3)

Uninsured Deposits / Total Deposits All Banks (1)(2) Uninsured Deposits Dollars are in thousands Based on Call Report data for public banks; Source: S&P Global. The 2023 data presented is as of Q1 2023 for public banks(the latest data available) and Q2 2023 for BSVN data. Uninsured Deposits | Cash/Liquidity Uninsured deposits total $334.31 million or 22.17% of total deposits; however, after deductions for insider owned, and also collateralized deposits, our adjusted uninsured deposits are $247.93 million, which is only 16.44% of total deposits Cash, securities, and our undrawn lines of credit totaled $506.69 million, an increase of $86.80 million or 20.67% as compared to Q1 2023, providing a 2.04X coverage of our adjusted uninsured deposits

Deposit Composition Deposit Growth & Composition Year-to-date deposits increased $78.90 million or 5.52% Historically we have shown steady growth in our core and non-interest bearing accounts(1) CAGR since 2018: 19.5% Dollars in millions Includes interest bearing and non-interest bearing demand deposit, money market, and savings accounts

Consistent Net Interest Margin Financial data is as of or for the three months ended March 31, 2023 and June 30, 2023, and as of or for the twelve months ended of each respective year Net interest margin (excluding loan fee income) is a non-GAAP financial measure, see Appendix for reconciliation to the most comparable GAAP measure for this metric ◼︎ Loan Fee Income Contribution Our net interest margin continued to show strength due to disciplined loan pricing, a healthy amount of non-interest bearing deposits, and our asset sensitive balance sheet During the quarter we benefited 5 bps by a purchase accounting adjustment. Real-time core NIM is approximately 4.55%.

Diluted Earnings Per Share 38.68% increase 1 Pro Forma $0.81 Tangible Book Value Per Share CAGR since 2018: 16.1% Record EPS: $1.05 for Q2, a 38.68% increase from Q2 2022 No share repurchases during the year Consistent Capital & EPS Growth Dollars are in thousands, except for per share data Pro Forma 2019 is a non-GAAP financial measure which adds back the one-time, extraordinary compensation expense related to the non-cash executive stock transaction that took place during the period See 2019 Pro Forma Net Income reconciliation table for detailed calculation of this measure Consistently strong earnings increased TBV despite three factors: $0.85 per share paid for an all-cash acquisition in Q4 2021 $0.89 per share AOCI unrealized loss from investments $2.30 per share paid in cash dividends

Return on Average Tangible Common Equity (1)(2) 5 year average: 22.1% Efficiency Ratio (2) 5 year average: 37.5% Return on Average Assets (1)(2) 5 year average: 2.3% Reliable Top Performer Dollars are in millions Financial data is as of or for the twelve months ended December 31 of each respective year and for the three months ended March 31, 2023 and June 30, 2023 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 20.90% Pro Forma 2.51% 1.03% Pro Forma As expected, the Q4 2021 acquisition of Watonga Bancshares caused a temporary decline in ROAA and a slight increase in our efficiency ratio; however, both metrics have returned to historical ranges Pro Forma 8.60% 38.83%

Consistently Outperforming Peers 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 (149 banks); Source: S&P Global Market Intelligence. Excludes one-time, non-cash executive stock transfer compensation expense of $11.8 million. As of Q1 2023, the latest data available.

Maximizing Our Employee Base (3) PPE(1) 46.35% increase Strength in Core Earnings 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 March 31, 2023 and June 30, 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 in a non-GAAP financial measure. See appendix for reconciliation to their most comparable GAAP measure Pro Forma $26.8 $15.1 Record PPE of $13.92 million: An increase of 46.35% as compared to Q2 2022 Strong PPE was driven by: Disciplined loan pricing Rising rates and an asset sensitive balance sheet We scale and achieve maximum productivity by: Utilizing a branch-lite model Hiring fewer but better FTEs Operating an efficient delivery system with a strict adherence to our processes 3.56% Actual Pro Forma 2 2

Loan Portfolio Trends Loan Portfolio Trends – Selected Categories Dollars are in millions CAGR Since 2018: 18.3% 12.6% 26.6% 21.2% 39.6%

Loan Portfolio Distribution Dollars are in millions. Data as of June 30, 2023 Loan Portfolio Selected Categories

COVID-19 Pandemic Net Charge-Offs to Average Loans Low historical charge-offs due to: Disciplined approach to lending Geographic footprint in high growth metros with thriving economies (OK and TX) Management team with long history of making loans with low historical loss levels Tenured lending staff with 81% of balances from team members with > 10 years of common experience 0.00%

Diverse CRE Portfolio Dollars are in millions. Data as of June 30, 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 — $0.80 million Non-Owner Occupied — $0.99 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

Hotel Portfolio by Class Hotel Portfolio by Location Hospitality Loan Portfolio Detail Dollars are in millions, data as June 30, 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 (81%) 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 $4.74 million 3.56% Actual Hotel Portfolio by Location

Total Assets Strategic Growth in Dynamic Markets Dollars are in millions 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q2 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 CAGR Since 2014: 15.9%

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 $52.7 million extrapolated over two years

Appendix

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). 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 tax periods; EPS calculation is based on diluted shares and combined federal and state effective tax rate for the three months ended June 30, 2023, March 31, 2023 and June 30, 2022 of 24.5%, 23.5%, and 24.5%, 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 24 of this presentation

Bank7 Corp. Performance Ratios Annualized. Return on average assets and shareholder’s 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 June 30, 2023, Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 9.47%, 11.88%, and 13.09% 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 24 of this presentation

Non-GAAP Reconciliations

Non-GAAP Reconciliations -- Continued

Available-for-Sale Securities Portfolio Investment Portfolio Dollars are in millions. All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities. Total investment securities of $169.9 million as of June 30, 2023 Weighted Average Duration: 2.4 Years Book Yield: 1.78%

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.

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.