Bank7 Q2 Earnings Call Highlights

Bank7 said Q2 2026 was solid overall, with management highlighting strong asset quality, liquidity, capital, and no debt. The company also reported a $3.7 million net gain tied to oil and gas assets, which helped offset earlier losses.

Expenses are expected to stay elevated in Q3 as IT remediation tied to material weaknesses, consulting costs, and possible M&A-related spending continue. Management guided third-quarter expenses to roughly $9.5 million to $9.7 million.

Loan growth and margin outlook remain constructive, though Bank7 expects some large loan paydowns to offset new fundings. Deposit costs were stable around 2.28% to 2.3%, and management said the bank remains well positioned if rates rise later this year.

Bank7 NASDAQ: BSVN executives said the company was pleased with its second-quarter 2026 performance, citing strong asset quality, liquidity and capital while also flagging elevated expenses tied to technology remediation and potential merger-and-acquisition activity.

President and CEO Tom Travis said the quarter included “a few items of noise,” most notably a $3.7 million net gain related to oil and gas assets. Travis said the company’s earlier investment in those assets helped avoid a larger loss after a 2023 asset-related setback and allowed Bank7 to recover cash spent on the asset plus generate a return.

Travis also said the company incurred heavier expenses from internal information technology changes connected to material weaknesses identified by a new accounting firm, as well as costs related to possible M&A activity. He said that when factoring out those items, management was pleased with recurring results.

Chief Financial Officer Kelly Harris said Bank7 expects third-quarter expenses to run between $9.5 million and $9.7 million. She said some second-quarter expenses related to IT and consulting are expected to spill into the third quarter, while M&A transaction expenses are more difficult to estimate.

In closing remarks, Travis said most of the remaining expenses tied to IT structural changes and material weakness remediation are expected to be completed through the third quarter.

Travis said Bank7 expects “some significant loan pay downs” that the company will need to offset, while noting that such periods are not unusual for the bank. Chief Credit Officer Jason Estes described the loan pipeline as “robust” for third-quarter fundings and said the bank could produce roughly double the loan fundings it generated in the second quarter. However, he cautioned that the growth would come against known payoffs. Estes said mid-single-digit loan growth remains a reasonable full-year goal, measured year over year. He also said Bank7 expects to maintain similar pricing on new loans compared with current levels and may see improved fee income in the third quarter because of higher expected loan booking activity.

Harris said Bank7’s deposit costs were static in June and tracked the second-quarter average. After clarifying the figure during the call, management said deposit costs were in the range of approximately 2.28% to 2.3%. Travis characterized the outlook as “basically flat,” adding that he agreed with Harris’ description of deposit costs as static.