Bank7 Corp (BSVN) 2024 Q3 法說會逐字稿

Good morning, and welcome to Bank7 Corp's third quarter earnings call. Before we get started, I'd like to highlight the legal information and disclaimer on page 26 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.

早上好，歡迎參加 Bank7 Corp 第三季財報電話會議。在開始之前，我想強調一下投資者簡報第 26 頁的法律資訊和免責聲明。對於無法存取簡報的人，管理層將討論包含前瞻性資訊的某些主題，這些主題是基於管理層的信念以及管理層所做的假設和當前可獲得的資訊。

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.

儘管管理階層認為此類前瞻性聲明中反映的預期是合理的，但他們不能保證此類預期將被證明是正確的。此類陳述受到某些風險、不確定性和假設的影響，其中包括經濟狀況對利率、信貸品質、貸款需求、流動性以及銀行監管機構的貨幣和監管政策的直接和間接影響。

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.

如果其中一項或多項風險成為現實，或基本假設被證明不正確，則實際結果可能與預期有重大差異。另請注意，本次電話會議包含對非 GAAP 財務指標的引用，您可以在公司今天早上提交的 8-K 中找到這些非 GAAP 財務指標與 GAAP 財務指標的調整表。

Representing the company on today's call, we have Tom Travis, President and CEO; J T. Phillips, Chief Operating Officer; Jason Estes, Chief Credit Officer; and Kelly Harris, Chief Financial Officer.

代表公司出席今天的電話會議的是總裁兼執行長 Tom Travis； J T. Phillips，營運長； Jason Estes，首席信貸長；凱利哈里斯，財務長。

With that, I'll turn the call over to Tom Travis.

這樣，我會將電話轉給湯姆·崔維斯。

Thank you. We also have Paul Tillman with us, who Kelly's right hand person and shout out to Kelly and Paul for their great work, but also getting the information out very timely. So I'm not surprised we have a great group.

謝謝。我們還有保羅·蒂爾曼（Paul Tillman），他是凱利的得力助手，對凱利和保羅的出色工作表示讚賞，而且也非常及時地發布了信息。所以我對我們擁有一支優秀的團隊並不感到驚訝。

So good morning. Welcome to everyone. Before we launch into our results, we're certainly aware of the devastation inflicted by the recent storms on our fellow citizens and our thoughts and prayers certainly go out to them very trying times over in the Eastern Seaboard for sure.

早安.歡迎大家。在我們公佈結果之前，我們當然意識到最近的風暴對我們的同胞造成的破壞，我們的思念和祈禱肯定會傳達給東海岸的他們。

As we move into our strong financial results, we're excited we're cautiously optimistic even in the face of this upcoming and very divisive national election. It will be nice if we can tone down the rhetoric for sure. Clearly, we're in for some choppy waters over the next few months. And yeah, we're continually stressing how comforted we are to be in this part of the United States. It's a real geographic financial advantage for sure.

當我們取得強勁的財務表現時，我們感到很興奮，即使面對即將到來的、分裂性很大的全國大選，我們仍保持謹慎樂觀。如果我們能夠緩和言語的話那就太好了。顯然，未來幾個月我們將面臨一些波濤洶湧的局面。是的，我們一直在強調我們在美國的這個地區是多麼的舒適。這無疑是真正的地理經濟優勢。

With that in mind, those issues are still always on our mind and this is certainly a time for caution, and that's why we take such comfort in our fundamental strengths, especially the high levels of capital. And it isn't just the higher levels of capital that gives us that comfort. We have a very strong liquidity position, and we further enhanced that last quarter by adding a second liquidity backstop net being the new fed facility, which is now in place to meet ever needed in times of stress.

考慮到這一點，這些問題仍然始終困擾著我們，這當然是一個需要謹慎的時刻，這就是為什麼我們對我們的基本優勢，尤其是高資本水準感到如此放心。帶給我們這種安慰的不僅是更高水準的資本。我們擁有非常強勁的流動性頭寸，上個季度我們透過增加第二個流動性支撐網（即新的聯準會工具）進一步增強了流動性頭寸，該工具現已到位，可以滿足壓力時期的任何需要。

So we now have two meaningful sources of additional liquidity, the FHLB, which we've had for a long time and the new fed facility. Our disciplined approach to maintaining that properly balanced mix, match balance sheet has really been proven through the rate cycles. And those of you that have followed us over a long period of time and I know that we including the debt, the spread management that compares our spread through up and down rate cycles in the various treasury markets.

因此，我們現在有兩個有意義的額外流動性來源：我們已經擁有很長時間的 FHLB 和新的聯準會設施。我們維持適當平衡的組合、匹配資產負債表的嚴格方法已經透過利率週期得到了真正的證明。對於那些長期關注我們的人來說，我知道我們包括債務、利差管理，該利差管理透過各個國債市場的利率上升和下降週期來比較我們的利差。

It's a great strength of the company. And really it's the foundation along with our credit quality that produces these results. And as you can see record earnings and a record EPS not only for the recent quarter, but our year-to-date results. So we're very proud of those accomplishments and those were achieved through normal operations and in the case of our EPS, they weren't driven by share buybacks.

這是公司的強大實力。事實上，正是我們的信用品質的基礎才產生了這些結果。正如您所看到的，不僅最近一個季度的利潤和每股收益創歷史新高，我們今年迄今為止的業績也是如此。因此，我們對這些成就感到非常自豪，這些成就是透過正常營運實現的，就我們的每股盈餘而言，它們並不是由股票回購所推動的。

So our strong earnings and capital levels were the driving factors that motivated us recently to make a large increase to our cash dividend. But even with that large increase, our dividend payout ratio is still in the 20% range. And when you compare that to banks that do pay dividends, the average is a little bit more than 35%.

因此，我們強勁的獲利和資本水準是促使我們最近大幅增加現金股利的驅動因素。但即使增幅如此之大，我們的股息支付率仍然在 20% 的範圍內。當你將其與支付股息的銀行進行比較時，平均值略高於 35%。

So Bank7 has plenty of room for further increases if we want to do that, while at the same time being comforted by our top tier earnings that rapidly accumulate capital. And as majority shareholders, we're really pleased with the total shareholder returns produced by our company. And as you can see, in the published materials, we rapidly compound shareholders value much faster than almost any other institution.

因此，如果我們想做到這一點，Bank7 有足夠的進一步成長空間，同時對我們快速累積資本的頂級收益感到安慰。身為大股東，我們對公司產生的股東總回報感到非常滿意。正如您所看到的，在已發布的資料中，我們快速複合股東價值的速度比幾乎任何其他機構都要快得多。

Our results are certainly attributed to our outstanding team members who work with our loyal customers. We are all very aligned and we're really looking forward to our future. And I can't thank the team members enough. So with that said, we're certainly ready for any questions and ready for Q&A this morning. Thank you.

我們的成績當然要歸功於我們優秀的團隊成員，他們與我們忠實的客戶一起工作。我們都非常一致，我們非常期待我們的未來。我對團隊成員感激不盡。話雖如此，我們當然已經準備好回答任何問題，並準備好今天早上的問答。謝謝。

We will now begin the question and answer session. (Operator Instructions) Woody Lee, KBW.

我們現在開始問答環節。（操作員說明）Woody Lee，KBW。

Hey, good morning guys.

嘿，早上好，夥計們。

Morning Woody.

早上好，伍迪。

Wanted to start on the loan growth side. I mean, the growth was great to see in the third quarter. I know there was some commentary last quarter that there was some funding delayed, but I was just curious how the pipeline is looking entering the fourth quarter.

希望從貸款成長方面入手。我的意思是，第三季的成長非常好。我知道上個季度有一些評論稱一些資金被推遲，但我只是好奇進入第四季度的管道情況如何。

Yeah. So thanks for the question. Last quarter, we were very confident that we had a lot of fundings coming. This quarter, I would say I would expect us to finish more in line with where we are now I wouldn't expect another nice growth quarter. But I think here we are kind of ending up in that range. We've talked about for the full year -- kind of a moderate to high single digit loan growth for the year.

是的。謝謝你的提問。上個季度，我們非常有信心獲得大量資金。這個季度，我想說，我預計我們的業績將與現在的情況更加一致，我預計不會再出現另一個良好的成長季度。但我認為我們最終處於這個範圍內。我們已經討論了全年的情況——今年的貸款成長率為中等到高個位數。

And I think we're going to be right in line with that. I think in general, there are certain segments we restrict to just continue to mitigate the risk in our portfolio. And so we continue to see opportunities there and we're passing on more deals specifically in the hospitality space, the energy space, those two components, we continue to really sift through opportunities to make sure we're optimizing the portfolio return with those dollars that we restrict by our own intent. So all in all should fall right in line with what we thought at the beginning of the year.

我認為我們將與此保持一致。我認為總的來說，我們限制某些部分只是為了繼續降低我們投資組合中的風險。因此，我們繼續在那裡看到機會，我們正在傳遞更多交易，特別是在酒店領域、能源領域，這兩個領域，我們繼續真正篩選機會，以確保我們用這些美元優化投資組合回報我們出於自己的意圖而限制。因此，總而言之，應該與我們年初的想法一致。

Yeah. And as you talk with clients, have you noticed the difference in activity now that we have a couple of rate cuts behind us or is that still about the same?

是的。當您與客戶交談時，您是否注意到現在我們已經進行了幾次降息，或者仍然大致相同，因此活動有所不同？

About the same.

差不多。

And Woody this is Tom. I would add to Jason's comments that again, this goes back, I believe two factors. One is the geographic advantage of the robust nature of this part of the country and two, it confounds me on a regular basis how the financial mentality has been about quote, higher interest rates in the United States.

伍迪，這是湯姆。我想在傑森的評論中補充一點，這又可以追溯到，我相信有兩個因素。一是該地區強勁的地理優勢，二是美國的金融心態如何影響報價和更高的利率，這經常讓我感到困惑。

And I think that's just been somewhat of a false narrative. And what I specifically mean, as I don't know the exact number, I know that Jason and Kelly and I looked at this four or five months ago. And I think we went back for the last 60 years, and I think there's only 9 times where the 10-year treasury was higher than where it's been.

我認為這在某種程度上是一種錯誤的敘述。我具體的意思是，因為我不知道確切的數字，我知道傑森和凱利和我四五個月前看過這個。我想我們回顧過去 60 年，我認為 10 年期公債只有 9 次比以前高。

And so I think there's this narrative evolved, when the fed started raising rates that oh, my gosh, we're in these high interest rates and then that bled into borrowers aren't going to be able to make payments or economic activity. And when you really look at long-term averages, it really hasn't been an interest rate story. It's been a cost story that may have had a dampening effect on companies borrowing money in building projects and investing in capital goods.

因此，我認為，當聯準會開始升息時，哦，天哪，我們處於高利率之中，然後藉款人將無法付款或無法進行經濟活動，這種說法就演變了。當你真正關注長期平均時，你會發現這實際上並不是一個利率問題。這是一個成本故事，可能對借錢建設項目和投資資本貨物的公司產生抑製作用。

And so I'm not trying to be long-winded here, but I think it's important for all of us to remember that we're operating in a very normal interest rate environment. And when you marry that with where we are in the part of the country and the inward migration, it's just a very nice, steady ambient level of economic activity. And --

因此，我不想在這裡囉嗦，但我認為我們所有人都必須記住，我們是在一個非常正常的利率環境中運作的。當你將其與我們所在地區的情況以及向內移民結合起來時，這就是一個非常好的、穩定的經濟活動環境水平。和--

And that's why the growth continues.

這就是成長持續的原因。

That's right.

這是正確的。

Throughout the last, call it, 15 months, 18 months.

最後，我們稱之為 15 個月、18 個月。

That's right. And again, I said another way, I mean, we've bounced into historical modern, low modern history, United States, historical interest rate lows. And so when you bounce the offer that people think, oh, my gosh, the rates are high, but that's just not the case.

這是正確的。再說一次，我用另一種方​​式說，我的意思是，我們已經反彈到歷史現代、現代歷史低點、美國歷史利率低點。因此，當你拒絕報價時，人們會想，哦，天哪，利率很高，但事實並非如此。

Go look at the research, go look at the historical numbers on the treasury markets and so -- so anyway, enough of that. But we feel really good about, as Jason said, we could have put even more loans on the books, but we're trying to be very careful.

去看看研究，看看國債市場的歷史數據等等——無論如何，這些已經足夠了。但正如傑森所說，我們感覺非常好，我們本可以在帳面上放更多的貸款，但我們正在努力非常小心。

Yeah. That's really helpful color. I guess shifting over to more than deposit side, I really appreciate the color you provided on the loan betas and the deposit betas and how that has shifted with the recent rate cuts. And I was a little surprised to see the deposit betas sort of go in lockstep with the loan beta. Did you see any deposit runoff when you made those rate adjustments and with future cut, do you think you can continue to cut deposit rates as aggressively?

是的。這真是有用的顏色。我想轉向的不僅僅是存款方面，我真的很欣賞你在貸款貝塔值和存款貝塔值上提供的顏色，以及隨著最近的降息而發生的變化。我有點驚訝地發現存款貝塔值與貸款貝塔值步調一致。當您進行這些利率調整時，您是否看到存款流失？

I think -- this is Tom again, Woody. We're not surprised your comment about you were -- I forget your words, but you noted how we have gone lockstep and I think it goes back to my opening comments relative to a properly matched balance sheet and we work so hard and we don't take our eye off the ball relative to loan floors and floaters and keep on our fixed rates. I think it's 24% of the loan portfolio or something like that. And even those are rapidly amortizing and so.

我想──這又是湯姆，伍迪。我們對你對你的評論並不感到驚訝——我忘記了你的話，但你注意到我們是如何步調一致的，我認為這可以追溯到我關於正確匹配的資產負債表的開場評論，我們工作如此努力，但我們不這樣做我們不要將目光從貸款下限和浮動利率上移開，並保持我們的固定利率。我認為這是貸款組合的 24% 或類似的數字。即使這些也在迅速攤銷等等。

The end result is a very properly methodically applied concept here, I would tell you that we have modeled. I mean, Kelly, whether we do we did four columns, we did 25 basis points, 50 basis points, 75 basis points and 100 basis points. And I guess I would use the term, non-issue for the first 100 basis points, Kelly?

最終結果是一個非常正確、有條理地應用的概念，我會告訴你，我們已經建模了。我的意思是，凱利，無論我們是否這樣做，我們都做了四欄，我們做了25個基點、50個基點、75個基點和100個基點。我想我會用“非問題”一詞來表示前 100 個基點，凱利？

Correct. And then once you get through the first 100 basis points to 150 basis points, that's when you start to see the floors really start to kick in.

正確的。然後，一旦你達到前 100 個基點到 150 個基點，你就會開始看到地板真正開始發揮作用。

Right. And so historically, it becomes more difficult as you get into that 100 basis points territory because you do have customers that will want to come in and say, hey, I think my floors are maybe too high. I don't want to renegotiate and but again, we've lived through these cycles and we've been very successful. And so yes, it might get a little more difficult. But the end of the day worthy, we are very comfortable operating our NIM and our historical ranges, and that's really the final message.

正確的。從歷史上看，當你進入 100 個基點的範圍時，事情變得更加困難，因為你確實有客戶會進來說，嘿，我認為我的底線可能太高了。我不想重新談判，但我們已經經歷了這些週期並且非常成功。是的，這可能會變得更加困難。但歸根結底，我們對淨利差和歷史範圍的操作非常滿意，這確實是最後的訊息。

Yeah. Well, that's all for me. Congrats on the great quarter.

是的。嗯，這就是我的全部了。恭喜這個偉大的季度。

And Woody, I have a question this is Tom. I noticed your target was $40. It seems to me like you're sandbagging because we're almost already there.

伍迪，我有個問題，這是湯姆。我注意到你的目標是 40 美元。在我看來，你就像在裝沙袋，因為我們已經快到了。

It was a great quarter. So let's see where it goes from that.

這是一個很棒的季度。那麼讓我們看看它會走向何方。

We appreciate your coverage, Woody. Thank you.

感謝您的報道，伍迪。謝謝。

Yeah, of course. Thanks, guys.

是的，當然。謝謝，夥計們。

(Operator Instructions) Nathan Race, Piper Sandler.

（操作說明）Nathan Race，Piper Sandler。

Hey, guys, good morning. Thanks for taking the questions.

嘿，夥計們，早安。感謝您提出問題。

Hey Nate, good morning.

嘿內特，早安。

Just going back to the margin commentary previously, I appreciate you still expect the margin to remain kind of within that historical range, but just given you guys posted, 20%-plus NII growth as short term rates are going up the last couple of years. Just curious how you're thinking about NII growth prospects in the next year, just given that short-term rates are expected to decline from here?

回到先前的利潤率評論，我很感激你們仍然期望利潤率保持在歷史範圍內，但鑑於你們發布的信息，隨著過去幾年短期利率的上升，NII 增長了 20% 以上。只是好奇，考慮到短期利率預計將從現在開始下降，您如何看待明年的 NII 成長前景？

So Nate, I think the one of the things that's not really been spoken about on this call yet is the fact that banks in general in 2023 after what happened in March really tightened up on lending money. And so our net interest income and our NIM, that's been helped because we've been able to be more stubborn on giving in negotiations on loan rates, okay.

Nate，我認為這次電話會議中尚未真正討論的一件事是，在 3 月份發生的事情之後，銀行總體上在 2023 年確實收緊了貸款。因此，我們的淨利息收入和淨利差得到了幫助，因為我們能夠在貸款利率談判中更加頑固地做出讓步，好吧。

And that's allowed us to give in a little more on deposit rates. And so there's different, I would say, variables involved as we're negotiating loans and deposits and trying to attract new clients and take care of our existing clients. But in general, I hear you yes, there's been pressure, but we've been able to navigate that because they're really -- in our market, you still have good healthy economic growth.

這使得我們能夠在存款利率方面做出更多讓步。因此，我想說，當我們談判貸款和存款、試圖吸引新客戶並照顧現有客戶時，涉及的變數是不同的。但總的來說，我聽到的是，確實存在壓力，但我們已經能夠應對這一點，因為在我們的市場上，經濟仍然保持良好的健康成長。

And you have, I would say, fewer banks really pursuing loans. There's always competition but I think the level of competition for loans, it shifted a little bit last year, really in the second half of the year. And yeah, I'm sure that's going to normalize. And it wouldn't surprise me as we continue to try to grow both loans and deposits going into next year, if some of that restriction or governance that we've seen on some of these competing banks if they start to return to more normal competing levels.

我想說的是，真正尋求貸款的銀行越來越少。競爭總是存在的，但我認為貸款競爭的程度去年發生了一些變化，實際上是在今年下半年。是的，我確信這將會正常化。當我們在明年繼續努力增加貸款和存款時，如果我們在一些競爭銀行上看到的一些限製或治理開始恢復到更正常的競爭狀態，我不會感到驚訝水平。

And so I think we've talked about this now for several quarters in a row that we could see our NIM gradually sliding down, but we're fighting every data maximize it.

因此，我認為我們已經連續幾個季度討論這個問題，我們可以看到我們的淨息差逐漸下滑，但我們正在努力爭取每一個數據最大化它。

Got it. That's very helpful. And well, we have you Jason, just would be curious to hear an update on the credit quality front. It would seem like your nonperformers are relatively stable in the quarter. So just curious to hear what you're seeing in terms of criticized classified trends these days?

知道了。這非常有幫助。好吧，傑森，我很想知道信用品質方面的最新情況。您的不良表現似乎在本季相對穩定。所以只是想聽聽您最近在受到批評的分類趨勢方面看到了什麼？

Yeah. So we were up $1 million roughly in the quarter, but there's a lot that's actually gone on there. That doesn't really show up in that individual number. We had a couple of really nice results. The largest NPA we had left. We actually got $1.6 million in principal reduction during the quarter, and we had the final tail of the energy credit paid off that was $1 million one.

是的。因此，本季度我們增加了大約 100 萬美元，但實際上發生了很多事情。這並沒有真正體現在那個個人數字中。我們取得了一些非常好的結果。我們留下的最大的NPA。實際上，我們在本季減少了 160 萬美元的本金，並且最終還清了能源信貸的尾部，即 100 萬美元。

And so we collected just under $3 million on last quarter's numbers from the NPA and principle, which is a good result. We did have two new relationships show up on this list that are on nonaccrual. I think those two, we don't expect a meaningful loss there, one approximately $3 million, the other one $750,000 in total balance, but I do think those will stay on here through year end, but my goal is always work this number to zero.

因此，我們根據上季度的 NPA 和原則收取了近 300 萬美元的資金，這是一個很好的結果。我們確實有兩個新的關係出現在這個清單上，它們是非應計的。我認為這兩個，我們預計不會出現重大損失，一個約為300 萬美元，另一個的總餘額為75 萬美元，但我確實認為這些將一直留在這裡到年底，但我的目標始終是透過這個數字來實現零。

And so we've had good results throughout this entire year, credit wise, the portfolio is performing well overall, but still always -- the book's big enough now where there's enough clients, there's enough exposure to various areas and industries. And so we're always eyeing something, but we're working through those successfully.

因此，我們一整年都取得了良好的業績，從信貸角度來看，投資組合總體表現良好，但仍然始終如此——現在賬簿足夠大，有足夠的客戶，對各個領域和行業都有足夠的接觸。所以我們總是在專注於一些事情，但我們正在成功地解決這些問題。

Okay, great. And then just in terms of thinking about the future of provisioning levels, growth kind of reverts to the mid-single-digit range going forward. Any thoughts on just the provision and kind of where you'd like the reserve to kind of trend over time going forward relative to think of one in the quarter coming out of 3Q.

好的，太好了。然後，就未來的供應水準而言，成長將恢復到中個位數範圍。關於準備金的任何想法，以及您希望準備金隨著時間的推移而變化的趨勢，相對於第三季的季度準備金。

Yeah. This quarter, depending on what happens with the economy in the fourth quarter, I still expect us to operate in the same ranges, as long as the portfolio holds up and the economic activity stays similar, knock on wood, it's been really good in Texas and Oklahoma. And so we're hopeful that it continues kind of in the same ranges.

是的。本季度，根據第四季度經濟的情況，我仍然預計我們將在相同的範圍內運營，只要投資組合保持不變並且經濟活動保持相似，天哪，德克薩斯州的情況真的很好和俄克拉荷馬州。因此，我們希望它繼續保持在相同的範圍內。

Yeah. And I think to add to Jason's comments, Nate, this is Tom. As we've commented before, it's good. It's the Rubik's Cube, so-to-speak and what I specifically mean is we carry a significant amount of cushion over and above the PCA levels of capital.

是的。我想補充一下傑森的評論，內特，這是湯姆。正如我們之前評論過的，這很好。可以這麼說，這就是魔術方塊，我具體的意思是，我們在 PCA 資本水準之上擁有大量的緩衝。

And Kelly, I don't remember do we put that slide in the deck? I know we have the stress test. I don't think we do, but I have it in my lap. But if you look at the cushion, the dollar cushion of where we are relative to excess capital, if you want to call it that way, you really are in a splitting hairs environment, whether it's [125], [120] or [130] and so we really look at those factors in tandem and as an example, it's not in the deck, but I've got it here just on the CET loan ratio we have $98 million of excess capital just over and above the prompt corrective action levels.

凱利，我不記得我們是否把那張幻燈片放在了甲板上？我知道我們有壓力測試。我不認為我們這樣做，但我把它放在我的腿上。但如果你看一下緩衝，即我們相對於過剩資本的美元緩衝，如果你想這樣稱呼它，你確實處於一個令人分心的環境，無論是 [125]、[120] 還是 [130] ] 所以我們真的會同時考慮這些因素，舉個例子，它不在甲板上，但我在這裡只是根據CET 貸款比率，我們有9800 萬美元的超額資本，略高於及時的糾正措施水平。

And it's kind of consistent with you go to risk-based capital at some $60 million-odd. So we don't really feel like that, that we're going to always. I mean, we're mindful of CECL. We have a very precise application of our methodology, but we're not conflicted at all about minor variations. And a lot of it has to do with how great of a job Jason and his staff do on asset quality. So that's a long answer, but that's kind of how we feel about it.

這與你投資約 6000 萬美元的基於風險的資本是一致的。所以我們並不是真的有這樣的感覺，我們會一直這樣下去。我的意思是，我們很關注 CECL。我們對我們的方法有非常精確的應用，但我們對微小的變化一點也不衝突。這在很大程度上與傑森和他的員工在資產品質方面所做的出色工作有關。這是一個很長的答案，但這就是我們的感覺。

Got it. That's helpful. And one last one for me. Tom, as you describe, you guys are accreting capital at pretty strong clips to say the least. So just curious how you're thinking about the M&A environment today and just kind of the acquisition prospects going forward.

知道了。這很有幫助。最後一張是給我的。湯姆，正如你所描述的，至少可以說，你們正在以相當強勁的速度累積資本。所以只是好奇您如何看待當今的併購環境以及未來的收購前景。

Nate, you know us well and there are -- I'm pretty certain a few people on this call that I've interfaced with relative to the M&A space this year and continue to do so. We were pretty far down the road on a particular potential transaction earlier this year that ended up not doing.

內特，你很了解我們，我很確定今年我在這次電話會議上與一些人就併購領域進行了接觸，並將繼續這樣做。今年早些時候，我們在一項特定的潛在交易上進行了相當長的努力，但最終沒有成功。

We have -- I would tell you that the market is very robust and we are constantly over the last four, five months being approached not to -- not as a the potential person to sell, but as a bank that's known for public currency and a high performing bank.

我們——我想告訴你，市場非常強勁，在過去的四五個月裡，我們不斷地被接觸——不是作為潛在的出售者，而是作為一家以公共貨幣和金融服務而聞名的銀行。

And so what's now starting to increasingly occur are quite a few opportunities and some of which are unfortunately, what I call the zombie banks who are really stuck with AOCI issues or not just in their securities portfolio, but also in the loan rate interest rate mark world and I don't want to be as bolder forward to say that some of these banks may have been using hope as a strategy relative to interest rates falling and therefore unwinding some of that AOCI and interest rate mark.

因此，現在開始越來越多地出現相當多的機會，其中一些是不幸的，我稱之為殭屍銀行，它們真正陷入了AOCI 問題，或者不僅在其證券投資組合中，而且在貸款利率利率標記中我不想更大膽地說，其中一些銀行可能一直在利用希望作為相對於利率下降的策略，從而解除部分 AOCI 和利率標記。

But I think the reality has hit in many places and I mean, if you just look at the 10-year, still around 4% today, right and so a lot of remember the 10-year debt, but I think there are based on the volume of opportunities that are being presented to our institution because of our performance in our currency, but also the fact that some of these banks have, I think, come to realize that it's a slower boat to China relative to unwinding some of these marks that I would expect that more -- I think more opportunities that were more discussion type, exploratory conversations will convert into actual transactions.

但我認為現實已經在很多地方發生了，我的意思是，如果你只看 10 年期債務，今天仍然在 4% 左右，對，所以很多人都記得 10 年期債務，但我認為有基於由於我們的貨幣表現，為我們機構帶來了大量的機會，而且我認為，其中一些銀行已經意識到，相對於解除其中一些馬克，進入中國的速度較慢我希望更多——我認為更多討論類型、探索性對話的機會將轉化為實際交易。

And we certainly see that. We're constantly engaged, we have some specific targets and discussions and so we've always been consistent that we want to build capital to be opportunistic. And I would expect transactions to occur, given all those dynamics sooner rather than later in our space.

我們當然看到了這一點。我們不斷地參與，我們有一些具體的目標和討論，因此我們始終一致，我們希望建立機會主義的資本。考慮到我們領域的所有這些動態，我預計交易會發生，宜早不宜遲。

Got it. That's great color. I appreciate the commentary. Thanks, guys. Congrats on the great quarter.

知道了。那顏色真棒。我很欣賞你的評論。謝謝，夥計們。恭喜這個偉大的季度。

Matt Olney, Stephens.

馬特·奧爾尼、史蒂芬斯。

Hey, good morning. Tom, on the last comments on the M&A front, just remind us of the characteristics of an M&A partner that you're looking for as it relates to size and geography and just the type -- the type of bank you're looking to partner with?

嘿，早安。湯姆，在關於併購方面的最後評論中，請提醒我們您正在尋找的併購合作夥伴的特徵，因為它與規模和地理位置以及類型有關 - 您正在尋找合作夥伴的銀行類型和？

Matt, we've been consistent in our history, and I like to call it, you've heard this many times the right side of the balance sheet. And so we are -- we have opportunities now and we're evaluating a handful that are really nice core banking groups with core funding and really good cultures.

馬特，我們在歷史上一直保持一致，我喜歡稱之為“資產負債表的右側”，你已經聽過很多次了。所以我們現在有機會，我們正在評估一些非常好的核心銀行集團，它們擁有核心資金和非常好的文化。

And so I guess I would flip the coin over and say that we are not interested in our specific verticals and fintech’s and our earnings. We're interested in people that are culturally aligned that would bring a really nice balance sheet to the bank and blend really well with the Bank7 team and as far as size goes, we're excited about we compound equity so quickly and we have excess equity.

因此，我想我會翻轉硬幣並說我們對我們的特定垂直行業、金融科技以及我們的收入不感興趣。我們對文化上一致的人感興趣，他們將為銀行帶來非常好的資產負債表，並與Bank7 團隊很好地融合，就規模而言，我們對我們如此迅速地複合股本感到興奮，而且我們有多餘的資金公平。

We are -- we would love to do an MOE. I think those are fun to do, and they're also very rewarding to the shareholder base and our executive team were big bank people and were without sounding arrogant were properly trained and hopefully, as you followed us over the last six years and all those quarters, what is it 24 quarters now since we've been public and we've been rock steady with our reporting and no misstatements.

我們——我們很樂意做一個教育部。我認為做這些很有趣，而且對股東基礎也非常有回報，我們的執行團隊都是大銀行人士，聽起來並不傲慢，接受過適當的培訓，希望你們在過去六年裡關注我們，所有這些季度，自從我們上市以來已經過去了24 個季度，我們的報告一直保持穩定，沒有任何錯誤陳述。

And I think that again, I give so much credit to this team and how precise and professional and top-tier performing they are. And so when you really think about that married with the excess capital, compounding of equity and MOE or $2 billion or $1 billion or whatever it is institution, is right in our wheelhouse.

我再次認為，我非常信任這個團隊，以及他們的精確、專業和頂級表現。因此，當你真正考慮與過剩資本結合時，股權和 MOE 或 20 億美元或 10 億美元或任何機構的複利，就在我們的駕駛室中。

And so -- and I think that those are the preferred things, does that mean we wouldn't do a $500 million acquisition. No, we would. So if those characteristics are in place, that's how we would see the future.

所以——我認為這些是首選的事情，這是否意味著我們不會進行 5 億美元的收購。不，我們會的。因此，如果這些特徵具備，我們就會看到未來。

Okay, that’s great, Tom, appreciate that. And I guess on the sticking with the M&A theme that there's lots of financial metrics to consider as you review these in your view and the Board's view, what's the -- what are the more important financial metrics to review as you kind of go through these various M&A options?

好的，那太好了，湯姆，謝謝。我想，堅持併購主題，當你以你的觀點和董事會的觀點審查這些指標時，需要考慮很多財務指標，當你審查這些指標時，需要審查的更重要的財務指標是什麼各種併購選擇？

I think it's a very difficult question to answer because look some people are more focused on earn backs, some people are more focused on PE ratios and tangible book value and deposit premiums. And for us, really, we are guided by long-term fundamental principles. And so all of those metrics have to coalesce, they have to merge and blend.

我認為這是一個很難回答的問題，因為看起來有些人更關注獲利回報，有些人更關注市盈率、有形帳面價值和存款溢價。對我們來說，確實，我們以長期基本原則為指導。因此，所有這些指標都必須合併、合併和混合。

And so with that, being said, you're not going to see Bank7 get outside of any normal or right down the middle of the fairway parameters. There's no reason for us to do that. And so if you look at us and again, not trying to prop ourselves up, but these are just facts, but we are a top tier organization and we are top 1%. And you look at that in any metric, whether it's the efficiency ratio, ROE, ROA, credit quality, we are just liquidity.

因此，話雖這麼說，你不會看到 Bank7 超出任何正常範圍或位於球道參數的中間。我們沒有理由這樣做。所以，如果你再看看我們，並不是想自吹自擂，但這些只是事實，但我們是頂級組織，我們是前 1%。你看看任何指標，無論是效率比、ROE、ROA、信貸質量，我們都只是流動性。

And so when you really look at that we're trading at where are we today about 1.8 times or 2 times book and then, our PE is 9.5 or 10. And so when you start thinking about, some banks and they seem to think that or maybe the investment bankers with all due respect to you guys go in and say, well, we think you guys are worth metrics that are anywhere near what I just described, but yet their performance is not there.

因此，當你真正看到我們今天的交易價格大約是預訂的 1.8 倍或 2 倍時，我們的本益比為 9.5 或 10。因此，當你開始思考時，一些銀行和他們似乎認為，或者也許那些對你們充滿敬意的投資銀行家會說，好吧，我們認為你們的價值指標與我剛才描述的非常接近，但他們的表現卻不在那裡。

It's a pretty tough thing for us to accept that. And so what we tried to do when we approach, (technical difficulty) we do. And so we'll pay a very fair price. And it will make a lot of sense and then the rising tide, so to speak, will raise both boats going forward. And so that's not a specific, metric by metric answer for you. But it's how we view things and we do things over the course of a three and a five-year strategic period.

對我們來說，接受這一點是一件非常困難的事。因此，當我們接近時，我們嘗試做的事情（技術難度）我們做到了。所以我們會支付一個非常公平的價格。這將很有意義，可以說，上漲的潮水將推動兩艘船繼續前進。因此，這並不是一個具體的、逐一衡量標準的答案。但這是我們在三年和五年策略期內看待事物和做事的方式。

Okay, great. Appreciate the commentary, Tom, and I guess just stepping away from M&A, going back to the core margin discussion. You talked about kind of maintaining that historical range, regardless of what the fed does in the near term. Any general commentary about the core margin as it relates to the fed so if we were to see a very active fed cutting each meeting 25 bps or 50 bps versus a more methodical, slower-moving fed cutting, maybe every other meetings? Any commentary about kind of directionally what that would mean for the core margin? Thanks.

好的，太好了。湯姆，感謝您的評論，我想我們只是暫時離開併購，回到核心利潤率討論上來。您談到了維持這段歷史區間，無論聯準會近期做什麼。關於核心利率的一般性評論，因為它與美聯儲有關，所以如果我們看到一個非常活躍的美聯儲在每次會議上降息25 個基點或50 個基點，而不是更加有條理、行動緩慢的美聯儲降息，也許每隔一次會議？有什麼關於這對核心利潤率意味著什麼的評論嗎？謝謝。

I just think historically, you can go back to the COVID years and go back to the slide that we have. And nothing concerns us our ability to manage that. I don't know what pays us slides on. It's on page 9, but we've gone back to 2016 and showed our spread compared to the 5 year, the 10 year and cost of funds.

我只是認為從歷史上看，你可以回到新冠疫情時期，回到我們現在的幻燈片。我們的管理能力與我們無關。我不知道我們靠什麼賺錢。它在第 9 頁，但我們回到了 2016 年，並顯示了與 5 年期、10 年期和資金成本相比的利差。

And so there's nothing that would indicate to us. And again, we've modeled this and we're not concerned at all. So I think the lowest of the non-fee income in new components was the low point --

所以沒有任何東西可以向我們表明。再說一次，我們已經對此進行了建模，並且我們根本不擔心。所以我認為新組件中非費用收入的最低點是最低點--

438 --

第438章——

438 --

第438章——

For full year.

全年。

Right. And I think Jason has said, in the past and I think he's right that at some point as the bank gets larger and larger, you say, well, maybe you touch those loans and maybe it goes to 425 or 450, if we get it to be a really large bank in a certain economic environment, but if that were to ever happen, then fine, we're still going to be a top-tier bank.

正確的。我認為傑森過去曾說過，我認為他是對的，在某個時候，隨著銀行變得越來越大，你會說，好吧，也許你接觸這些貸款，如果我們得到它，也許它將達到425 或450在特定的經濟環境下成為一家真正的大型銀行，但如果這真的發生了，那好吧，我們仍然會是一家頂級銀行。

Okay. Thanks, guys.

好的。謝謝，夥計們。

Thank you.

謝謝。

Nathan Race, Piper Sandler.

內森·雷斯，派珀·桑德勒。

Thanks for taking the follow-up. Maybe a question for Kelly, just in terms of thinking about the impact within fees and expenses from the oil and gas assets going forward?

感謝您的關注。也許凱利有一個問題，只是考慮石油和天然氣資產未來的費用和支出的影響？

[Certainly]. For Q4, we do feel like that we saw peak revenue and expenses from the oil and gas perspective in Q3. And then that said, noninterest income combine bank by $3 million and $2.3 million that's going to come from oil and gas and $700,000 coming from core fee and the from a non-interest expense perspective for Q4.

[當然]。對於第四季度，我們確實認為從第三季石油和天然氣的角度來看，我們看到了收入和支出的峰值。話雖如此，銀行非利息收入中的 300 萬美元和 230 萬美元將來自石油和天然氣，70 萬美元來自核心費用以及第四季非利息支出的角度。

For modeling $9.5 million with $1 million coming from oil and gas and a $8.5 million coming from core. So core noninterest expense up a little bit quarter over quarter. Historically, our fourth quarters have been a little bit higher in that perspective.

建模費用為 950 萬美元，其中 100 萬美元來自石油和天然氣，850 萬美元來自核心。因此，核心非利息支出季度較上季略有上升。從歷史上看，從這個角度來看，我們第四季的業績要高一些。

Got it. That's helpful. And then one last one. I know there's some noise in there (technical difficulty)

知道了。這很有幫助。然後是最後一張。我知道裡面有些噪音（技術難度）

Hello? Nate, are you still there?

你好？內特，你還在嗎？

Did you not hear my question?

你沒聽到我的問題嗎？

No we didn't. Your phone cut off.

不，我們沒有。你的電話斷了。

I apologize. Just the last question around non-interest bearing deposit levels. I know there's some noise, the last couple of quarters tied to some legal matters. So just curious how you're thinking about that trajectory going forward?

我道歉。關於無利息存款水準的最後一個問題。我知道過去幾季有一些與一些法律問題有關的噪音。所以只是好奇你如何看待未來的發展軌跡？

Pretty flat. Just our normal growth, we didn't have that large $100 million deposit that flowed out here earlier this year and then I'd say pretty flat. Nothing major either way.

相當平坦。只是我們的正常成長，我們沒有今年早些時候流出的 1 億美元大筆存款，然後我會說相當持平。無論如何，沒什麼大不了的。

Okay. So it seems like some of the mix shift changes have largely slowed across the client base lately but not entirely.

好的。因此，最近客戶群的一些混合轉變變化似乎在很大程度上放緩，但並非完全放緩。

Yeah.

是的。

Okay, great. I appreciate you guys taking the follow-ups. Thanks again.

好的，太好了。我感謝你們採取後續行動。再次感謝。

Thank you.

謝謝。

Concludes our question and answer session. I would like to turn the conference back over to Tom Travis for any closing remarks.

我們的問答環節結束了。我想將會議轉回湯姆·特拉維斯（Tom Travis）發表閉幕詞。

Well, thank you all for your interest. We appreciate that coverage and we look forward to the future. Thank you. Bye-bye.

好的，謝謝大家的注意。我們感謝這樣的報道，並對未來充滿期待。謝謝。再見。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。