Bank7 Corp. Q1 FY2026 earnings call

Tom Travis mentioned the company's strong results, thanked the team of bankers, and noted pride in managing NIM and balancing the balance sheet. He also discussed the team's strength and the effort put in to produce consistent results. Jason Estes talked about loan growth goals, expecting moderate single-digit growth with some slowing after robust growth in prior quarters, noting sizable payoffs expected in Q2 and offset by new loan bookings. He also mentioned the energy portfolio is at a 10-year low at over 8% of the portfolio, and it's not a huge driver. Kelly Harris discussed core NIM modeling in the range of 440 to 445 and loan fees reverting to normal of 28 to 35 basis points. Tom Travis spoke about capital management, stating the company is over 16% on risk base, more focused on organic growth and M&A for efficient capital use. Jason Estes also mentioned credit book being clean, with some migration, multiple credits transitioning out, and a couple of downgrades, but active in managing credit quality. Tom Travis discussed the energy loan situation, having accomplished the goal of reducing the hit and expecting it to be diminished or gone soon. Kelly Harris and Tom Travis also talked about fee and expense guidance for Q2, with expenses projected in $9 million to $9.25 million range and non-interest income in $750,000 to $850,000 range

Jason Estes said loan growth goals remain intact with moderate single-digit expected, slightly slowed down from prior robust growth. Kelly Harris modeled core NIM in 440 - 445 range and loan fees in 28 - 35 basis points. Tom Travis mentioned capital management focus on organic growth and M&A for efficient capital use. Tom Travis also discussed energy loan situation expecting it to be either gone or diminished quite a bit over next few months. For Q2, expenses projected $9 million to $9.25 million and non-interest income $750,000 to $850,000

Discussed risks related to economic conditions affecting interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators. Also, Middle Eastern conflict impact on oil prices and potential effects on the company's business

Q: Adam Kroll asked about loan growth expectations and energy portfolio demand.

A: Jason Estes said loan growth goals remain intact with moderate single-digit, slightly slowed from prior robust growth, expecting sizable payoffs in Q2 offset by new loan bookings. Energy portfolio at 10-year low over 8% of portfolio, not a huge driver.

Q: Adam Kroll asked about net interest margin trend.

A: Kelly Harris said modeling core NIM in 440 - 445 range and loan fees reverting to 28 - 35 basis points.

Q: Adam Kroll asked about capital management and M&A.

A: Tom Travis said company is over 16% on risk base, more focused on organic growth and M&A for efficient capital use.

Q: Will Jones asked about deposit cost competitive environment and margin.

A: Tom Travis said no massive fluctuation in deposit costs, margin expected stable.

Q: Will Jones asked about interest recoverers.

A: Kelly Harris said non-accrual interest net up 1.1 million and fee side closer to 1.7 million.

Q: Will Jones asked about credit provision.

A: Jason Estes said credit book clean, some migration, multiple credits transitioning out, couple of downgrades, but active in managing credit quality, provision depends on loan growth and economy.

Q: Will Jones asked about capital buybacks.

A: Tom Travis said buybacks don't add franchise value, not a critical need, but may consider if good price.

Q: Jordan Genn asked about downgraded credits details.

A: Jason Estes said large builder-developer relationship downgraded.

Q: Jordan Genn asked about M&A MOE and downstream partners.

A: Tom Travis said both are on the table, strategic matters long-term.

Q: Jordan Genn asked about fee and expense guidance excluding oil and gas.

A: Kelly Harris said Q2 expenses $9 - $9.25 million, non-interest income $750k - $850k.

Q: Nathan Race asked about oil and gas impact on fees and expenses.

A: Tom Travis said it's a small outlier item, expected to be diminished or gone soon