Bank7 Corp.

The company did not provide full Q2 revenue or EPS figures in the transcript. Management highlighted a $3.7 million net gain tied to the oil-and-gas asset sale. Kelly J. Harris said Q3 expenses are projected at $9.5 million to $9.7 million, with similar IT and consulting costs likely to continue into Q3. Deposit costs were currently in the 2.28% to 2.3% range, June core margin was 4.51%, and management guided to a core NIM range of 4.45% to 4.53%. For loans, management said Q3 fundings could be about 2x Q2, and full-year loan growth guidance remains mid-single-digit year over year.

Tom Travis sounded upbeat and confident, saying the quarter was very good once noise is stripped out. He emphasized that the company has exited the oil-and-gas business, recovered its investment, and is now focused on a cleaner bank with strong liquidity, no debt, and strong earnings. He also stressed that the bank remains open to organic growth and strategic M&A, including potentially short- to mid-term follow-on deals.

Kelly J. Harris focused on the mechanics behind the quarter and the near-term outlook. She said Q3 expenses are expected to run $9.5 million to $9.7 million, with IT/remediation and consulting costs similar to Q2, and noted deposit costs were static in June and currently around 2.28% to 2.3%. On margin, she guided core NIM to 4.45% to 4.53%, said June margin was 4.51%, and added that a rate hike later in the year would likely help due to asset sensitivity.

Analysts pressed on whether the IT remediation costs are mostly complete, and management said some of those expenses should continue into Q3. They also asked about deposit pricing and margin sensitivity, with management saying deposit costs are basically flat and that the margin is being managed mainly by excess liquidity and loan paydowns rather than aggressive pricing changes. On the acquisition process, management said the court-driven auction timetable points to further clarity within about two weeks, with the bidding process expected in August and a proposed end date of September 3.