Bank7 Corp. Common stock 2026 Q3 Earnings Call

Thank you, and welcome to the call. First and foremost, what a great company we have here at Bank7. It doesn't happen by accident. Our team's been together a long time. We execute at a high level every day. We like to say it takes courage to be great, and we're proud of our consistent top-tier results. Just a fantastic company and really good results, especially given all the things that we're having to do at the same time closing our recent acquisition. So, a really great quarter. I would say that highlights would start out with very strong loan growth that is stronger than what it appears because we overcame substantial unscheduled pay downs from large customers. So our loan team, as usual, is functioning at a very high level, and we're very thankful for them.

Then we discipline ourselves with our loan pricing and our deposit pricing, and we properly manage that balance sheet, which enables us to continue benefiting from that strong and consistent NIM. We also benefit from the robust economy and the business-friendly markets down here in Texas and Oklahoma, and it's a real blessing, and we're mindful of that. For a long time, people on the call were asking us what we were going to do with the excess capital, and it was tempting to distribute some of those funds while the calls were being made asking us what we were going to do, but we waited, and we're glad we did.

And we are very excited about the pending merger with Century in New Mexico, and it is a really good example of discipline and patience and prudent use of capital, which really drives the metrics on how transformational and beneficial this transaction will be. Century is an outstanding deposit and banking franchise. It is well entrenched in the communities in New Mexico, especially Santa Fe and its surrounding areas. We really look forward to that merger. We look forward to continuing serving our existing communities and customers as well as theirs and coming together as one team. We are well positioned for the future, looking forward to executing on our plans. With that, we are here to answer any questions anyone might have.

Hey, Woody, this is Kelly. Yeah. During the quarter, we experienced, as Tom mentioned, substantial loan pay down. We chose to be conservative from an excess liquidity, higher deposit balance.

Because of the known loan fundings as well as the pending merger and some of that cash that goes out related to that. That is kind of the game plan going forward. A strong pipeline as well as closing this merger.

Yeah. I think from a deal perspective, we currently view the deal as neutral to our margin, and we intend to sell some to all of Century's bonds. Depending on when those sales occur, it will generate a meaningful amount of cash, and we will be methodical about how we deploy that cash. In some scenarios, it will be more accretive to our margin. In other scenarios, it will be more neutral to our margin. From a Bank7 legacy perspective, the loan beta in the quarter was close to 60%. The deposit beta was around 52%. I think, forward-looking, assuming a rate hike in Q4, we anticipate that loan beta being in the 65%-70% range. The deposit beta a little bit harder to project, but we assume less.