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 22 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 Tom Travis, President and CEO, JT Phillips, Chief Operating Officer, Jason Estes, Chief Credit Officer, Kelly Harris, Chief Financial Officer. With that, I'll turn the call over to Tom Travis. Please go ahead. Thank you. Welcome to the call, for those who are joining us. For those who have joined us on past earnings calls, we ask that you indulge us a bit here. We're going to take a little more time than we usually do, and we'll reflect on past events and current results. Today, we'll start by reflecting on two different anniversaries. We'll review and discuss our exceptional third quarter results. The first anniversary we reflect upon is the third quarter of 20 years ago. Some of us on this call lost friends, family members, fellow workers, and first responders. Although it was long ago, those were certainly trying times. We all remember that day, and we'll never forget its effects on all of us, especially our friends back east. I'm sure some of you on this call will never forget either. With that said, we move on to the second anniversary, that's the three-year anniversary of our IPO. Some of you on today's call were instrumental and helpful to us, whether as bankers, advisors, or investors, we're happy to have you with us today. We reflect back to our S1 and the three-week roadshow and ask ourselves whether we met our representations and achieved the goals set during that time. To that question, we affirmatively know that we have performed in accordance with what we said we would do. We're proud of our results. Let's take a few minutes to review a few items related to that. One question posed to us was whether Bank7 would be able to maintain its high levels of return on assets and return on equity while also experiencing strong growth. As you can see from the compounded return data, we have maintained our strong profit levels and have illustrated the ability of our model to continue producing exceptional returns while also experiencing strong growth. In fact, over the three-year period, our total return to shareholders has been 85%. While the future's never guaranteed, at this pace of shareholder value creation, Bank7 is on track to have doubled your money in slightly more than three years. Our exceptional profits are our real strength, and they're driven by many factors, the cornerstone of which is our relentless focus and commitment to a strong credit risk management discipline, which has produced a high-quality credit book. We have a high level of confidence in this area. Additionally, we have grown our loan book with good yields without compromising our tried-and-true underwriting principles. Jason Estes, our Chief Credit Officer, is rock solid. His guidance and discipline while working with our lending staff is a real strength for our company, as are our lenders. They are to be congratulated. We knew what we had in this area three years ago and what we continue to have today, we're excited to continue to build with that team in the future. Another key element that received significant discussion and questions during the roadshow was our strong net interest margin. We were frequently asked two questions: Would we be able to grow and also maintain that margin? Whether our strong net interest margin was a function of too much credit risk. With respect to the first question, we refer to the historical data in our investor presentation as it illustrates our success in maintaining that strong margin, even in the face of unprecedented low interest rates and increased competitive pressures. Our strength in this area is attributable to many factors, with the most important being our strong customer relationships and their recognition of the value of banking with Bank7. Another factor we consistently discussed was the focus by management and frontline bankers on the importance of core deposits, and we are especially proud to show solid core deposit growth over the last three years while also maintaining a consistent portion of those core deposits in our non-interest-bearing category. With respect to the second question of whether our strong NIM was a function of too much credit risk, as previously mentioned, we point to our years of success with our credit book, as we know that our credit underwriting apparatus works as it should, and you can achieve dual outcomes of a strong margin and a solid credit book. One last item that was often questioned and discussed during the IPO process related to our strong efficiency ratio and whether we could sustain that as we grew. We repeatedly expressed confidence in our branch-light model and also our strict adherence to processes that maximize efficiencies and how that would keep our costs down, even in a high-growth environment. As the data shows, we've sustained that low efficiency ratio, and we also highlight that our assets per employee metric has continued to improve and remain very strong. In summary, the results we've posted over the last three years highlight how exceptionally well our management team has performed, something we expected from ourselves and promised to deliver to our fellow investors. We also note that we did not surprise anyone with poor or weak financial results. We're proud that we produced 12 consecutive strong quarters, which is especially noteworthy considering the extraordinary challenges related to the COVID-related economic stress. If we shift gears and we look forward, we recently announced a subsequent event to 3Q, that being the pending acquisition of Cornerstone Bank, which we're excited about. We included a one-page recap in this investor presentation. However, if you're not already aware, we recently filed our 8-K in investor presentation, which outlines that transaction and illustrates why we're excited about it. We encourage you to read it. We look forward to working with the new team members who are longtime bankers and people who have illustrated the ability to serve their customers and communities very well. Their credit culture has been strong for a long time. We expect our cultures will blend well together. From a financial perspective, the acquisition increases core deposits by approximately 20%, which is always welcome, as it provides further funding capabilities to us. Once those are fully deployed, we expect a double-digit increase to our earnings per share. We're also comforted by knowing that we deployed our excess capital, yet we are still above what is considered well-capitalized, and therefore, we maintain our capital strength, which of course, is rapidly reinforced with our strong earnings. As we wrap up today, we're pleased with our third quarter and excited to move forward executing on our strategy and integrating the new bank into ours. At the risk of sounding like a broken record, and that's okay, I emphasize how exceptional the management team is and how gratifying it is to work with them and all of our team members. Frankly, it's a lot of fun to succeed together, and it isn't anything to take for granted. I look forward to working with the fellow team members to continue our high levels of achievement. With that, we thank you for your participation today, and we invite any questions you might have. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Brady Gailey of KBW. Please go ahead. Hey, thank you. Good afternoon, guys. Afternoon, Brady. Hey, thanks for the three-year recap. Congrats on that. That's a lot of hard work. I wanted to hit on loan growth. I know loan growth can be lumpy for you guys just quarter to quarter. When you think about the pro forma company with Cornerstone in the mix, what do you think your kind of longer-term loan growth rate should be? We're still thinking in the low double-digit range, Brady. All right. When you look at it looks like you guys charged off some previously reserved for net charge-offs in the quarter. Maybe just a comment on kind of the dynamics there. Separately, that takes your reserve down to about 1.04% of non-PPP loans. Maybe just a comment on kind of how you think that reserve level will trend from here as well. Yeah. You're right. That was previously identified as a specific reserve. There was litigation involved, not between us and the client, but it became more clear through the quarter, and so that transaction was run. As you said, it was previously specifically identified. As it relates to the ALL level, part of that's driven by the NPAs and overall portfolio performance. This level, something that we're comfortable with currently, and especially when we're carrying excess capital. All right. The net charge-offs, I'm guessing, are related to that midstream energy credit that you guys have been talking about. Were there any net charge-offs beyond that one energy credit? No, just a minor recovery. Lastly for me, there's not as much focus on hospitality anymore. It seems like everybody's getting on with life post-COVID. Maybe just a quick update on the hospitality book. I know you all fared pretty well through COVID, but does that industry and does you all's relationships there continue to improve? The industry does continue to improve. In our slide deck, there was a comment in there about second quarter revenue in Texas hospitality exceeding 2019 second quarter. There was a little bit of a deficit comparing the two in ADR and RevPAR, but overall, gross revenues were up. As you're aware, most of our activity in the hospitality space is in Texas, specifically the Dallas-Fort Worth metro. We've continued to see improvement and strong performance through the summertime at the vast majority of our portfolio properties. Brady, I would also say that we've been kind of like a broken record on the hospitality. We've been commenting that there's really just two operating hotel loans that we had any concern about, and those have also recovered. They're still the two that are the laggards, I would say. We still expect little to no meaningful actual losses in the portfolio. Really, it's just a story of those two credits and their ability to continue to recover. I would add on top of that the world has quickly changed, especially in Texas, and we're confronted with, what is it, almost $50 million of hospitality loans that are going to be paying off here in the next 60 days because the buyers are back in force and they're recognizing value for these strong brands and these strong markets. I guess my point is that it's performing the way we thought it would, and we're not concerned about any meaningful exposure whatsoever. Okay, great. Thanks for the color, guys. The next question comes from Nathan Race of Piper Sandler. Please go ahead. Hi, guys. Hey, Nate. Hey. Question just on the margin outlook ex-PPP. Curious how we should kind of think about the trajectory or the pressure expected there from the 441 level that we saw here, and perhaps maybe just within the context of kind of what the weighted average rate on new loan production is lately. We start there? Yeah, go ahead, Jason. Well, I would say on the new loan originations, they're coming in similar to the last two quarters in what we've reported there, kind of mid fours. That's holding pretty consistent and has remained that way throughout pretty much this entire year. I would say this on the NIM. It's been very difficult with-- what are we keeping at the Fed, Kelly, $150 million-$200 million? Yep. It's been really tough to maintain that margin with that much cash at the Fed, and doesn't make any money. At the same time, Jason and I were at lunch today talking about the competitive pressures, especially in the Texas market, and, well, I guess it's just as bad in Oklahoma City and Tulsa, but lenders are just really down in the dirt. Given the liquidity and the current interest rate environment and where we are, it's not going to surprise us to see our NIM degrade down. As Jason and I were talking about at lunch, look, if we wanted to grow the portfolio a lot faster, we could do it if we lowered our rates. We still think there's plenty of economic activity to where we don't have to get crazy with our rates, and we can still maintain our discipline. All this is to say that we wouldn't be surprised to see the NIM slip from here for those reasons. Understood. That's great color. Thank you. Just a clarifying question, Tom, to your earlier point, just in terms of expecting some hospitality payoffs. Is that kind of factored into Jason's earlier comment in terms of expecting low double-digit growth on a combined basis with Cornerstone coming into the fold this quarter? We have a nice pipeline, Nate. I think that the part of what we're also faced with this quarter, and I would imagine that other banks will be facing it as well, is there is quite a flurry of potential sales of assets and companies to beat this deadline to try to get ahead of any capital gains tax treatment change. I would say that that's exacerbated a little bit the potential payoffs. We still have that ambient level of underlying economic activity in this part of the country that keeps our new fundings and pipelines in good shape. We could experience a slight dip in our non-acquisition book for the fourth quarter, but we'd expect to recover that quickly just because of those factors that I mentioned. Understood. Makes sense. Just maybe one last one from me, just going back to the energy credit and the charge-offs this quarter, could you update us in just in terms of what the balance remaining on the books is tied to that credit particular and kind of what the outlook is for any remaining portion of that credit going forward? Yeah. The remaining balance is $6.9 million. That represents about 70% of the NPAs at quarter end. There's actually two other credits that represent 27% combined. I would say the 27%, those two have been in the NPA category for a long time. They continue to pay and perform. There's some expectation that those would come out of the bucket at some point, and the same thing with the single large energy credit. It's just hard to predict exactly when, but improvement is expected from this point. Continued improvement. Okay, great. I appreciate all the color. Thank you, guys. Congrats again. The next question comes from Matt Olney of Stephens. Please go ahead. Hey, guys. Good afternoon. I guess the question is kind of what's the view of a more normalized level of liquidity at the bank at this point? Then once you fold in Cornerstone deal, how do you expect that to change? I would say that anytime that you're running the bank in that high 80%-low 90% loan-to-deposit, you really need to prudently maintain extra liquidity. Regardless of the fact that it hurts you because of the Fed's interest rate policy, it's still tried and true fundamentals that you just need to do it. I would say that the other thing that was on our mind during COVID was, frankly, the whole world was very scared, right? It wasn't a time for us to consider pulling liquidity down and doing anything with it. We're always going to be a little bit heavy on the liquidity side, and we have that luxury because of our NIM and because of the earnings. That's just the way we are. As far as moving forward, one of the things I did not mention in the NIM is what comes with this acquisition in the near term is a bond portfolio. Clearly, we plan to reposition the balance sheet to where we gradually convert the bonds into better-yielding loans. That's a factor as well. I don't know if that answered your question other than it's something that we constantly will watch but always maintain strong liquidity. Yep. That's helpful. Thanks for that. On the operating expense side, you guys had some good cost controls this quarter. Anything to call out in particular in the third quarter? Kind of rolling forward, I guess, just general thoughts about managing expenses in light of inflation and higher expenses just to run the core bank even outside of the Cornerstone acquisition. Thanks. I would say that for the next two to three quarters, clearly, the acquisition, we're going to have acquisition-related expenses. We're going to keep those in a separate, obviously, general ledger, we're going to be able to report what those extraordinary one-time expenses were. Over and above that, there's clearly wage pressure. Clearly. Outside of the wage pressure, because we're a branch-light model, we're not a manufacturer with raw material inputs and things like that, I would expect the non-wage expense area of the bank to be more of the same. Clearly, small items like energy costs increase for us is not near what it would be if we had a lot of branches. I don't think outside of the wage pressures that we're experiencing, it'll be more of the same. Okay. All right. That's all from me, guys. Thanks, and congrats on the quarter. Thank you. Thank you. If you have a question, please press star then one. Our next question will come from Tim Abbott of Twin Lions. Please go ahead. Hey, guys. Congrats on the strong quarter and really consistent execution over the first three years as a public company. Thank you. Thank you. I guess first question on the acquisition. Tom, you referenced the opportunity to take their bond portfolio and convert that into some higher-yielding assets, and looks like from their call reports, Cornerstone is running with a loan deposit ratio somewhere in the 50s, so quite a bit of excess liquidity. In your guidance, when you talk about 7% accretion in 2022, 13% in 2023, are you factoring in the benefit from deploying some of that excess liquidity into higher-yielding assets? Is that sort of in addition to the over and above the guided accretion? It's all together, and most of it's going to occur in 2023. I'd say the back half of 2022, but fully into 2023. Okay. Just to make sure I'm understanding you correctly, I guess your modeling and your guidance on the accretion does include the benefit of deploying some of that excess liquidity. Correct. Got it. One other just quick one sort of point of clarification. When you guys talk about new production coming in at somewhere in sort of the mid-fours average yield, is that ex fees or does that include the benefit from fee income? That's ex fees. Great. All right. That's all I got. Thanks a lot, guys. Thank you. Thank you. This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks. Thank you for joining the call. We appreciate your involvement and look forward to talking to you in the near future. The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.