Bank7 (NASDAQ:BSVN) released first-quarter financial results and hosted an earnings call on Tuesday. Read the complete transcript below.
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Summary
Bank7 reported strong financial performance with solid average loan growth, although some payoffs later in the quarter affected end-of-period balances.
The company is managing its net interest margin effectively and expects it to remain stable despite potential changes in interest rates.
Loan growth is expected to be moderate single digits for the year, with a focus on offsetting early payoffs with new loan bookings.
The energy portfolio is at a 10-year low and not expected to significantly impact overall performance.
The company has a strong capital position and is actively pursuing strategic M&A opportunities, indicating a preference for growth through acquisitions rather than share buybacks.
Management highlighted the effective management of asset quality and credit risk, with minimal provisions needed for loan losses.
The company is optimistic about its ability to navigate potential economic uncertainties, including geopolitical tensions affecting energy prices.
Full Transcript
OPERATOR
Sam. Welcome to Bank 7 core first quarter 2026 earnings call. Before we get started, I’d like to highlight the legal information and disclaimer on page 25 of the Investor presentation. For those who do not have access to the presentation, management is going to discuss certain topics that contain forward looking information which is based on management’s beliefs as well as assumptions made by and information currently available to management. Although management believes that the expectations reflected in such forward looking statements are reasonable, they can give no assurance that such expectations will prove to be correct. Such statements are subject to certain risks, uncertainties and assumptions, including, among other things, the direct and indirect effect of economic conditions on interest rates, credit quality, loan demand, liquidity and monetary and supervisory policies of banking regulators. Should one or more of these risks materialize or should underlying assumptions prove incorrect, actual results may vary materially from those expected. Also, please note that this conference call contains references to non GAAP financial measures. You can find reconciliations of these non GAAP financial measures to GAAP financial measures in an 8-K that was filed this morning by the company. Representing the company on today’s call we have Brad Haynes, Chairman, Tom Travis, President and CEO J.T. phillips, Chief Operating Officer, Jason Estes, Chief Credit Officer, Kelly Harris, Chief Financial Officer and Paul Timmons, Director of Accounting. With that, I’ll turn the call over to Tom Travis. Please go ahead.
Tom Travis (President and CEO)
Thank you. Welcome to that as you can see, we’re happy with our results today. As we regularly say, we’re probably a little boring in this area, but we have to thank our team of bankers and I know some of them listen to these calls and if you’re on the call, thank you. And we have a great group that’s been together for a few decades and it’s very comforting to have such a strong, deep, broad team. And that’s why we produce the results that we do. And so I suppose it’s a little boring for some people quarter after quarter where we’re always putting up these fantastic results. But it takes a lot of effort and we don’t take many days off around here and we do it the right way and, and the results speak for themselves. And so, you know, last quarter we were, I think the markets were expecting rate cuts in this quarter. Now the market’s thinking maybe the rates will go the other way due to the increase in commodity prices associated with the Middle Eastern conflict. Who knows? But the reason that I bring it up is that we are really proud of our ability to manage our NIM and to properly mix our balance sheet and we’re not concerned about rates going down or rates going up. We’re positioned either way. And so with all of that said, you can see the major metrics in the deck and we’re here to answer any questions. So thank you.
OPERATOR
We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw the question, please press star then two. At this time, we will pause momentarily to assemble our roster. Our first question comes from Nathan Race with Piper Sandler. Please go ahead.
Tom Travis (President and CEO)
Hi, good morning, this is Adam Kroll on for Nathan Race and thanks for taking my questions. Hey, Adam, good morning.
Adam Kroll
Yeah, so maybe just starting on loan growth. You know, looks like average loan growth was pretty solid while some payoffs later in the quarter dragged down end of period balances. So I guess I’m curious if your expectations for loan growth has changed for the remainder of the year and along with that, if you’re seeing any noticeable change in demand within your energy portfolio.
Jason Estes (Chief Credit Officer)
Yes, thanks for the question. This is Jason and I think our goals for the year remain intact. We’re still thinking moderate single digit, but I would say that coming off of the third and fourth quarter we had last year where we had really robust growth that kind of exceeded expectations in both quarters, we’re not at that pace, so I would say that it has slightly slowed down, but we had really nice bookings in the first quarter. So just expect kind of the same from us this year. I do think, you know, like last year we offset really sizable early payoffs throughout last year. That’s a routine thing for us. I think you’ll see more of that this year. In the second quarter in particular, you know, we expect pretty sizable payoffs and then we’ll just offset that with new loan bookings throughout the rest of the year. And as it relates to the energy portfolio, …
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