Question · Q4 2025
Woodrow Lay inquired about Bank7's strong loan growth in 2025, specifically if lighter payoff activity contributed to the consistent growth, and asked for forward expectations. He also questioned if 2026 growth could mirror 2025 and sought clarity on net interest margin compression, its trend with potential rate cuts, and historical NIM ranges.
Answer
Thomas L. Travis (President and CEO) and Jason Estes (EVP and COO) attributed strong loan growth to thriving economies in Oklahoma and Texas, noting accelerated payoffs throughout 2025 but lighter in Q4. They anticipate $25 million/month in payoffs for 2026, requiring $35-$45 million/month in new fundings. Jason Estes indicated that 2026 growth matching 2025 would be a stretch due to pricing pressure. Thomas L. Travis and Kelly Harris (CFO) explained NIM compression was from an all-time high, with loans reaching floors. Kelly Harris stated the current NIM of 445 is a good starting point, potentially dipping slightly, while Thomas L. Travis mentioned historical lows around 415-420 with deeper rate cuts.
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