Bank7 Corp.

Welcome to the Bank 7 Corp. Second Quarter 2026 Earnings Call. Before we get started, I'd like to highlight the legal information and disclaimer on page 27 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 8K that was filed this morning by the company. 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, Kelly Harris, Chief Financial Officer, and Paul Timmons, Director of Accounting. With that, I'll turn the call over to Tom Travis.

Thank you, and welcome to the call this morning. We're very pleased with our quarter. There was a few items of noise in the quarter, specifically the oil and gas, and we reported that three point seven million dollar net gain. However, I think it's important that we all remember that by us making that investment, we also precluded ourselves or eliminated the possibility that we would have had a larger loss when we suffered that loss back in 2023 on the assets. And that's really an important thing to remember. So not only did we recover more as a result of that, but once we recovered all the cash that we had spent for the asset and then we had on top of that a nice return. So management's very pleased and we also accomplished our goal a little quicker than we thought we would. So we're delighted with that outcome and it's important to remember that. And then I think the second thing is that we also have experienced some heavier expenses relative to some internal changes that we're making in the IT area specifically as a result of those material weaknesses that the new accounting firm thought that existed. So we spent considerable time and money doing that. And then in addition to those expenses, we've incurred expenses related to potential M&A activity, and so when you factor out the noise and you look at the recurring results, we're very pleased with those and so we look forward to the rest of the year. We do have some significant loan pay downs that we will need to overcome. That's nothing new. We sometimes experience those but our asset quality has never been better and we're just delighted at the position that we're in with plenty of liquidity and no debt, strong earnings, heavy capital and well positioned for growing the bank and organically and also in the M&A space. So with that said, we're here to answer any questions. Thank you.

We will now begin the question and answer session. To ask a question, you may press star then 1 on your touch-tone 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 2. At this time, we will pause momentarily to assemble our roster. Our first question comes from Woody Lay with KBW. Please go ahead.