0001458412false00014584122024-07-152024-07-15

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

July 15, 2024

Date of Report (date of earliest event reported)

CROSSFIRST BANKSHARES, INC.

(Exact name of registrant as specified in its charter)

Kansas

001-39028

26-3212879

(State or other jurisdiction of incorporation or organization)

(Commission File Number)

(I.R.S. Employer Identification No.)

11440 Tomahawk Creek Parkway     Leawood     Kansas

(Address of Principal Executive Offices)

66211

(Zip Code)

(913) 901-4516

Registrant’s telephone number, including area code

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

    

Trading Symbol(s)

    

Name of each exchange on which registered

Common Stock, par value $0.01 per share

CFB

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.02.    Results of Operations and Financial Condition.

On July 15, 2024, CrossFirst Bankshares, Inc. (the “Company”) announced the release of its financial results for the quarter ended June 30, 2024. A copy of the full text of the related press release, which is posted on the Investor Section of the Company’s website (investors.crossfirstbankshares.com) under Financials – Quarterly Reports, is attached as Exhibit 99.1 and incorporated herein by reference. The Company does not intend for information contained on its website to be part of this report.

The Company intends to hold a conference call to review second quarter 2024 financial results. The investor presentation, which will accompany the call, is furnished as Exhibit 99.2 hereto and incorporated herein by reference.

The information in Item 2.02 of this Current Report, including Exhibits 99.1 and 99.2, is being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly stated in such a filing.

Item 9.01.   Financial Statements and Exhibits.

(d)Exhibits

99.1

    

Press Release Issued July 15, 2024

99.2

Investor Presentation

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:

July 15, 2024

CROSSFIRST BANKSHARES, INC.

By:

/s/ Benjamin R. Clouse

Benjamin R. Clouse

Chief Financial Officer

Exhibit 99.1

Graphic

CrossFirst Bankshares, Inc. Reports Second Quarter 2024 Results

LEAWOOD, Kan., July 15, 2024 (GLOBE NEWSWIRE) -- CrossFirst Bankshares, Inc. (Nasdaq: CFB), the bank holding company for CrossFirst Bank, today reported second quarter net income of $18.6 million, or $0.37 per diluted common share.

Second Quarter 2024 Key Financial Performance Metrics

Net Income

ROAA(1)

Net Interest Margin – Fully Tax Equivalent (“FTE”)(1)

Diluted EPS

ROCE(1)

$18.6 million

1.00%

3.20%

$0.37

10.59%

CEO Commentary:

“CrossFirst had a great quarter delivering solid earnings growth, maintaining strong credit quality, and strategically returning capital to stockholders,” said Mike Maddox, President and CEO of CrossFirst Bankshares, Inc. “Our earnings growth is a result of our focused strategy to scale our markets and verticals, driving expansion of net interest income and fee income. In turn, we increased operating leverage across our expense base.”

2024 Second Quarter Highlights:

Operating revenue(2) improved $1.4 million, or 2%, from the prior quarter
Net income improved $0.4 million and diluted earnings per common share improved $0.01 from the prior quarter
oIncurred $0.7 million of expense, net related to the renegotiation of our core system contract with an expected earn-back period of four months
Net interest margin – FTE remained consistent with the prior quarter at 3.20%
Grew loans $95 million, or 2%, for the quarter and $216 million, or 4%, year-to-date
Grew deposits $147 million, or 2%, for the quarter and $243 million, or 4%, year-to-date
Credit quality improved with non-performing assets decreasing to 0.22% of total assets, annualized net charge-offs representing 0.07% of average loans and classified loans declining meaningfully
Returned capital to stockholders of $3.0 million during the quarter via share buybacks at a weighted average price of $12.78 per share
Remained well capitalized with total risk-based capital of 11.4% and common equity Tier 1 capital of 10.2%
Grew book value per common share 2% to $14.78 at June 30, 2024 compared to the prior quarter; tangible book value per common share(3) also grew 2% to $14.02

(1)Ratios are annualized.
(2)Net interest income plus non-interest income.
(3)Represents a non-GAAP financial measure. See “Table 5. Non-GAAP Financial Measures” for a reconciliation to the most directly comparable financial measure calculated and presented in accordance with GAAP.


CROSSFIRST BANKSHARES, INC.

    

Three Months Ended

Six Months Ended

 

(Dollars in millions except per share data)

    

June 30, 2024

    

March 31, 2024

    

June 30, 2023

    

June 30, 2024

    

June 30, 2023

 

Operating revenue(1)

$

63.6

$

62.2

$

60.3

$

125.8

$

123.0

Net income

$

18.6

$

18.2

$

16.0

$

36.8

$

32.2

Adjusted net income(2)

$

18.6

$

18.2

$

17.3

$

36.8

$

34.6

Diluted earnings per common share

$

0.37

$

0.36

$

0.33

$

0.73

$

0.65

Adjusted diluted earnings per common share(2)

$

0.37

$

0.36

$

0.35

$

0.73

$

0.70

Return on average assets

 

1.00

%  

 

1.00

%  

 

0.93

%  

 

1.00

%  

 

0.95

%

Adjusted return on average assets(2)

 

1.00

%  

 

1.00

%  

 

1.00

%  

 

1.00

%  

 

1.02

%

Return on average common equity

 

10.59

%  

 

10.36

%  

 

10.00

%  

 

10.47

%  

 

10.26

%

Adjusted return on average common equity(2)

 

10.59

%  

 

10.36

%  

 

10.81

%  

 

10.47

%  

 

11.05

%

Net interest margin

 

3.18

%  

 

3.17

%  

 

3.23

%  

 

3.17

%  

 

3.41

%

Net interest margin - FTE(3)

 

3.20

%  

 

3.20

%  

 

3.27

%  

 

3.20

%  

 

3.46

%

Efficiency ratio

 

59.32

%  

 

60.31

%  

 

62.02

%  

 

59.81

%  

 

61.41

%

Adjusted efficiency ratio - FTE(2)(3)

 

57.41

%  

 

58.31

%  

 

57.27

%  

 

57.86

%  

 

56.84

%

(1)Net interest income plus non-interest income.
(2)Represents a non-GAAP financial measure. See “Table 5. Non-GAAP Financial Measures” for a reconciliation to the most directly comparable financial measure calculated and presented in accordance with GAAP.
(3)Tax exempt income is calculated on a tax-equivalent basis. Tax-free municipal securities are exempt from federal income taxes. The incremental federal income tax rate used is 21.0%.

Income from Operations

Net income totaled $18.6 million, or $0.37 per diluted common share, for the second quarter of 2024, compared to $18.2 million, or $0.36 per diluted common share, for the first quarter of 2024 and $16.0 million, or $0.33 per diluted common share, for the second quarter of 2023. On a linked quarter basis, net income was higher due to increases in net interest income and non-interest income, partially offset by higher provision expense and non-interest expense. Compared to the same period in the prior year, the quarter’s results reflect higher net interest income, as well as lower provision expense, partially offset by lower non-interest income and higher non-interest expense.  

Net Interest Income

Net interest income – FTE increased $1.3 million compared to the first quarter of 2024 entirely due to higher average earning assets as the net interest margin – FTE was 3.20% in both periods. The yield on earning assets increased six basis points due to stronger yields on both loans and taxable securities. The cost of funds also increased six basis points due to continued pricing pressure on interest-bearing deposits, as well as higher rates on Federal Home Loan Bank advances due to higher intra-quarter utilization. Average earning assets increased $161 million compared to the prior quarter primarily due to higher average loan balances and higher average taxable securities balances.

Compared to the second quarter of 2023, net interest income – FTE increased $3.1 million as the benefit from higher average earning assets was partially offset by a seven basis point reduction in net interest margin - FTE. The yield on earning assets increased 39 basis points due to stronger loan yields and higher yields on securities. The cost of a rate hedge also lowered the earning asset yield by eight basis points. The cost of funds increased 51 basis points compared to the second quarter of 2023 due to pricing pressure on deposits, client migration into higher cost deposit products and a reduction in average non-interest-bearing deposits compared to the prior year. The increase in average earning assets was driven by higher average loan and securities balances as well as higher average cash balances.

Non-Interest Income

Non-interest income increased $0.1 million compared to the first quarter of 2024 and decreased $0.1 million compared to the same quarter in 2023. The increase compared to the linked quarter was primarily due to increases in client service charges and fees, partially offset by lower gains on sale of loans. Compared to the same quarter in the prior year, the decrease was primarily due to lower gains on sale of loans, partially offset by increases in client service charges and fees and stronger credit card interchange income.

Non-Interest Expense

Non-interest expense increased $0.2 million from the first quarter of 2024 and increased $0.3 million from the second quarter of 2023. Salaries and employee benefits were lower compared to the first quarter of 2024 primarily due to lower payroll taxes and benefits costs, partially offset by merit increases. Salaries and employee benefits were lower compared to the second quarter of 2023 primarily


CROSSFIRST BANKSHARES, INC.

due to a decrease in severance expenses and lower benefits costs, partially offset by merit increases and higher equity compensation expense. Data processing expense increased compared to both comparative periods due to $0.7 million of net cost incurred in the first quarter of 2024 related to the renegotiation of our core systems contract, which is expected to be earned back over the next four months. Additionally, foreclosed assets, net decreased compared to the first quarter of 2024 due to expense in the prior quarter related to a commercial construction credit that was moved to foreclosed assets held for sale.

The Company’s effective tax rate for the second quarter of 2024 was 20.7%, compared to 20.8% in the first quarter of 2024 and the second quarter of 2023.

Statement of Financial Condition Performance & Analysis

During the second quarter of 2024, total assets increased $159 million, or 2%, compared to the end of the prior quarter and increased $518 million, or 7%, compared to June 30, 2023. Total assets increased for both comparative periods primarily due to an increase in loans, which included acquired loans when compared to June 30, 2023. Compared to the end of the prior quarter, the asset increase also included an increase in cash. Deposits increased $147 million compared to March 31, 2024, and increased $634 million, including $165 million in acquired deposits, compared to June 30, 2023.

Loan Results

During the second quarter of 2024, loans increased $95 million, or 2%, compared to March 31, 2024. Loans increased $547 million, or 9%, compared to June 30, 2023, including $106 million, net, of acquired loans. The loan increase for both comparative periods was primarily due to growth in the commercial and industrial and the commercial real estate – non-owner-occupied portfolios. The increases in the commercial real estate portfolio were primarily due to funding of prior commitments, as well as the addition of acquired loans compared to June 30, 2023.

QoQ

QoQ

YoY

YoY

% of

Growth

 Growth

Growth

 Growth

    

6/30/2024

    

3/31/2024

    

12/31/2023

    

9/30/2023

    

6/30/2023

    

 Total

    

  ($)

    

 (%)

    

  ($)

    

 (%)

 

(Dollars in millions)

 

Period-end loans (gross)

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Commercial and industrial

$

2,207

$

2,179

$

2,160

$

2,056

$

2,058

 

35

%  

$

28

 

1

%  

$

149

 

7

%

Energy

 

234

 

221

 

214

 

214

 

233

 

4

 

13

 

6

 

1

 

Commercial real estate - owner-occupied

 

592

 

578

 

567

 

584

 

543

 

9

 

14

 

2

 

49

 

9

Commercial real estate - non-owner-occupied

 

2,812

 

2,770

 

2,686

 

2,593

 

2,480

 

44

 

42

 

2

 

332

 

13

Residential real estate

 

474

 

469

 

464

 

456

 

440

 

7

 

5

 

1

 

34

 

8

Consumer

 

25

 

32

 

37

 

43

 

43

 

1

 

(7)

 

(22)

 

(18)

 

(42)

Total

$

6,344

$

6,249

$

6,128

$

5,946

$

5,797

 

100

%  

$

95

 

2

%  

$

547

 

9

%

Deposit & Other Borrowing Results

During the second quarter of 2024, deposits increased 2%, compared to March 31, 2024, and increased 10%, compared to June 30, 2023. The deposit increase compared to March 31, 2024 was due to increases in non-interest-bearing deposits, savings and money market deposits and time deposits, partially offset by decreases in transaction deposits. The total deposit increase compared to June 30, 2023 was due to increases in non-interest-bearing deposits, transaction deposits, savings and money market deposits and time deposits, including $165 million of acquired deposits.


CROSSFIRST BANKSHARES, INC.

QoQ

QoQ

YoY

YoY

Growth

Growth

Growth

Growth

    

6/30/2024

    

3/31/2024

    

12/31/2023

    

9/30/2023

    

6/30/2023

    

($)

    

(%)

    

($)

    

(%)

 

(Dollars in millions)

 

Period-end deposits

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Non-interest-bearing deposits

$

958

$

954

$

990

$

1,029

$

928

$

4

 

%  

$

30

 

3

%

Transaction deposits

 

774

 

867

 

800

 

802

 

604

 

(93)

 

(11)

 

170

 

28

Savings and money market deposits

 

3,062

 

2,929

 

2,870

 

2,757

 

2,730

 

133

 

5

 

332

 

12

Time deposits

 

1,940

 

1,837

 

1,831

 

1,744

 

1,838

 

103

 

6

 

102

 

6

Total

$

6,734

$

6,587

$

6,491

$

6,332

$

6,100

$

147

 

2

%  

$

634

 

10

%

FHLB and Other borrowings ended the quarter at $85.1 million compared to $86.8 million at March 31, 2024 and $277 million at June 30, 2023. The average borrowings balance was higher this quarter as we utilized borrowings during the quarter due to seasonal client cash outflows which resolved by the end of the quarter leaving the ending balance flat compared to the end of the prior quarter. Compared to the same period in the prior year, borrowings were reduced due to client deposit growth, including acquired deposits.

Asset Quality and Provision for Credit Losses

The Company recorded $2.4 million of provision expense, compared to $1.7 million in the prior quarter and $2.6 million in the prior year second quarter. The current quarter’s provision expense was primarily driven by loan growth and economic factors.

Non-performing assets decreased $3.7 million to $16.7 million, or 0.22% of total assets, at June 30, 2024.  The decrease was due to a reduction in loans 90+ days past due and still accruing, client principal payments and partial charge-offs. Annualized net charge-offs were 0.07% for the quarter compared to 0.10% in the prior quarter and 0.04% in the prior year second quarter. Classified loans also decreased meaningfully in the quarter with the ratio of classified loans to total capital and ACL improving to 13.3%.

The allowance for credit losses was $76.2 million as of June 30, 2024 and was consistent with the prior quarter at 1.20% of outstanding loans. The combined allowance for credit losses and accrual for off-balance sheet credit risk from unfunded commitments (“RUC”) was $81.4 million or 1.28% of outstanding loans.

The following table provides information regarding asset quality.

Asset quality (Dollars in millions)

    

6/30/2024

    

3/31/2024

    

12/31/2023

    

9/30/2023

    

6/30/2023

Non-accrual loans

$

10.1

$

12.1

$

18.5

$

20.4

$

12.9

Foreclosed asset held for sale

 

4.8

 

5.4

 

 

 

Loans 90+ days past due and still accruing

 

1.8

 

2.9

 

6.3

 

15.7

 

0.4

Non-performing assets

$

16.7

$

20.4

$

24.8

$

36.1

$

13.3

Loans 30 - 89 days past due

 

16.0

 

46.4

 

2.0

 

29.5

 

13.3

Net charge-offs (recoveries)

 

1.0

 

1.5

 

1.9

 

1.3

 

0.6

Asset quality metrics (%)

    

6/30/2024

    

3/31/2024

    

12/31/2023

    

9/30/2023

    

6/30/2023

 

Nonperforming assets to total assets

 

0.22

%

0.27

%

0.34

%

0.50

%

0.19

%

Allowance for credit losses to total loans

 

1.20

 

1.20

 

1.20

 

1.20

 

1.17

Allowance for credit losses + RUC to total loans(1)

 

1.28

 

1.28

 

1.30

 

1.31

 

1.30

Allowance for credit losses to non-performing loans

 

640

 

499

 

296

 

198

 

508

Net charge-offs (recoveries) to average loans(2)

 

0.07

 

0.10

 

0.12

 

0.09

 

0.04

Classified Loans / (Total Capital + ACL)

 

13.3

 

15.9

 

14.9

 

14.2

 

9.7

Classified Loans / (Total Capital + ACL + RUC)(1)

 

13.3

 

15.8

 

14.8

 

14.0

 

9.6

(1)Includes the accrual for off-balance sheet credit risk from unfunded commitments.
(2)Interim periods annualized.

CROSSFIRST BANKSHARES, INC.

Capital Position

At June 30, 2024, stockholders’ equity totaled $728 million, or $14.78 of book value per common share, compared to $715 million, or $14.47 of book value per common share, at March 31, 2024.

Tangible book value per common share(1) was $14.02 at June 30, 2024, an increase of $0.32, or 2%, from March 31, 2024. The increase was primarily due to net income, partially offset by the change in other comprehensive loss and share repurchases. The ratio of common equity Tier 1 capital to risk-weighted assets was approximately 10.2%, and the ratio of total capital to risk-weighted assets was approximately 11.4% at June 30, 2024.

(1)Represents a non-GAAP financial measure. See “Table 5. Non-GAAP Financial Measures” for a reconciliation to the most directly comparable financial measure calculated and presented in accordance with GAAP.


CROSSFIRST BANKSHARES, INC.

Conference Call and Webcast

Management will host a conference call to review second quarter results on Tuesday, July 16, 2024, at 10 a.m. CT / 11 a.m. ET. The conference call and webcast may also include discussion of Company developments, forward-looking statements and other material information about business and financial matters. To access the event by telephone, please dial (844) 481-2831 at least fifteen minutes prior to the start of the call and request access to the CrossFirst Bankshares call. International callers should dial +1 (412) 317-1851 and request access as directed above. The call will also be broadcast live over the internet and can be accessed via the following link: https://edge.media-server.com/mmc/p/uorjsgvq. Please visit the site at least 15 minutes prior to the call to allow time for registration. For those unable to join the presentation, a replay of the call will be available two hours after the conclusion of the live call. To access the replay, dial (877) 344-7529 and enter the replay access code 4103192. International callers should dial +1 (412) 317-0088 and enter the same access code. A replay of the webcast will also be available for 90 days on the Company’s website https://investors.crossfirstbankshares.com/.

Cautionary Note Regarding Forward-Looking Information

The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company’s Quarterly Report on Form 10-Q is filed. This earnings release contains forward-looking statements regarding, among other things, our business plans; growth opportunities; expense control initiatives; anticipated expenses, cash requirements and sources of liquidity; capital allocation strategies and plans; and future financial performance. These statements are often, but not always, made through the use of words or phrases such as “growth,” “plan,” “guidance,” “believe,” “future,” “opportunities,” “anticipate,” “expect,” “expected,” “will,” “goal,” “focused,” “intend,” “position,” “initiatives,” “could,” “estimated,” “assume” and similar words or phrases of a future or forward-looking nature. The inclusion of forward-looking information herein should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs, certain assumptions made by management, and financial trends that may affect our financial condition, results of operations, business strategy or financial needs, many of which, by their nature, are inherently uncertain and beyond our control. Our actual results could differ materially from those anticipated in such forward-looking statements.

Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a number of factors, including, without limitation, the following: uncertain or unfavorable business or economic conditions and any regulatory responses thereto, including uncertainty and volatility in the financial markets, possible slowing or recessionary economic conditions and continuing or increasing inflation; geographic concentration of our markets; changes in market interest rates that affect the pricing of our products and our net interest income; our ability to effectively execute our growth strategy and manage our growth, including identifying, consummating and integrating suitable mergers and acquisitions, entering new lines of business or offering new or enhanced services or products; fluctuations in the fair value of our investments; our ability to successfully manage our credit risk, particularly in our commercial real estate, energy and commercial-based loan portfolios, and the sufficiency of our allowance for credit losses; declines in the values of the real estate and other collateral securing loans in our portfolio; an increase in non-performing assets; borrower and depositor concentration risks; risks associated with originating Small Business Administration loans; our dependence on our management team, including our ability to attract, hire and retain key employees and their client and community relationships; our ability to raise and maintain sufficient liquidity and capital; competition from banks, credit unions, FinTech companies and other financial services providers; the effectiveness of our risk management framework; accounting estimates; our ability to maintain effective internal control over financial reporting; our ability to keep pace with technological changes; system failures, service denials, cyber incidents or other failures, disruptions or security breaches; employee error, employee or client misconduct, fraud committed against the Company or our clients, or incomplete or inaccurate information about clients and counterparties; disruptions to our business caused by our third-party service providers; our ability to maintain our reputation; environmental liability or failure to comply with regulatory requirements affecting foreclosed properties; costs and effects of litigation, investigations or similar matters to which we may be subject; risk exposure from transactions with financial counterparties; severe weather, natural disasters, pandemics or other health crises, acts of war or terrorism, climate change and responses thereto, or other external events; compliance with (and changes in) laws, rules, regulations, interpretations or policies relating to or affecting financial institutions, including stringent capital requirements, higher FDIC insurance premiums and assessments, consumer protection laws and privacy laws and accounting, tax, trade, monetary and fiscal matters, including the policies of the Federal Reserve and as a result of government initiatives; systemic risks across the banking industry associated with the soundness of other financial institutions; volatility in our stock price and other risks associated with our common stock; changes in our dividend or share repurchase policies and practices or other external events. These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. These forward-looking statements are made as of the date hereof, and we disclaim any obligation to update any forward-looking statement or to publicly announce the results of any revisions to any of the forward-looking statements included herein, except as required by law.


CROSSFIRST BANKSHARES, INC.

About CrossFirst Bankshares, Inc.

CrossFirst Bankshares, Inc. (Nasdaq: CFB) is a Kansas corporation and a registered bank holding company for its wholly owned subsidiary, CrossFirst Bank, a full-service financial institution that offers products and services to businesses, professionals, individuals, and families. CrossFirst Bank, headquartered in Leawood, Kansas, has locations in Kansas, Missouri, Oklahoma, Texas, Arizona, Colorado, and New Mexico.

INVESTOR CONTACT

Mike Daley, Chief Accounting Officer and Head of Investor Relations

mike.daley@crossfirstbank.com

(913) 754-9707

https://investors.crossfirstbankshares.com


CROSSFIRST BANKSHARES, INC.

TABLE 1. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

    

June 30, 2024

    

March 31, 2024

    

December 31, 2023

(Dollars in thousands)

Assets

Cash and cash equivalents

$

250,364

$

206,773

$

255,229

Available-for-sale securities - taxable

 

461,018

 

441,157

 

413,217

Available-for-sale securities - tax-exempt

 

341,331

 

345,446

 

353,436

Loans, net of unearned fees

 

6,344,407

 

6,249,187

 

6,127,690

Allowance for credit losses on loans

 

76,218

 

74,856

 

73,462

Loans, net of the allowance for credit losses on loans

 

6,268,189

 

6,174,331

 

6,054,228

Premises and equipment, net

 

69,898

 

70,580

 

70,869

Restricted equity securities

 

3,768

 

3,752

 

3,950

Interest receivable

 

39,497

 

37,833

 

37,294

Foreclosed assets held for sale

 

4,818

 

5,377

 

Goodwill and other intangible assets, net

 

29,499

 

30,404

 

31,335

Bank-owned life insurance

 

71,766

 

71,266

 

70,810

Other

 

98,403

 

92,813

 

90,312

Total assets

$

7,638,551

$

7,479,732

$

7,380,680

Liabilities and stockholders’ equity

Deposits

Non-interest-bearing

$

957,584

$

954,240

$

990,458

Savings, NOW and money market

 

3,836,070

 

3,795,770

 

3,669,726

Time

 

1,939,972

 

1,837,136

 

1,831,092

Total deposits

 

6,733,626

 

6,587,146

 

6,491,276

Federal Home Loan Bank advances

 

76,256

 

77,840

 

77,889

Other borrowings

 

8,875

 

8,911

 

8,950

Interest payable and other liabilities

 

91,916

 

90,864

 

94,422

Total liabilities

 

6,910,673

 

6,764,761

 

6,672,537

Stockholders’ equity

Preferred Stock, $0.01 par value: Authorized - 5,000,000 shares, issued - 7,750 at June 30, 2024, March 31, 2024 and December 31, 2023

 

 

 

Common Stock, $0.01 par value: Authorized - 200,000,000 shares, issued - 53,590,173, 53,503,391 and 53,326,641 at June 30, 2024, March 31, 2024 and December 31, 2023, respectively

 

536

 

535

 

533

Treasury stock, at cost: 4,340,033, 4,102,925 and 3,990,753 shares held at June 30, 2024, March 31, 2024 and December 31, 2023, respectively

 

(62,761)

 

(59,720)

 

(58,251)

Additional paid-in capital

 

545,716

 

544,206

 

543,556

Retained earnings

 

308,886

 

290,419

 

272,351

Accumulated other comprehensive loss

 

(64,499)

 

(60,469)

 

(50,046)

Total stockholders’ equity

 

727,878

 

714,971

 

708,143

Total liabilities and stockholders’ equity

$

7,638,551

$

7,479,732

$

7,380,680


CROSSFIRST BANKSHARES, INC.

TABLE 2. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended

Six Months Ended

June 30, 

March 31,

June 30, 

June 30, 

June 30, 

    

2024

    

2024

    

2023

    

2024

    

2023

(Dollars in thousands except per share data)

Interest Income

Loans, including fees

$

113,346

$

110,099

$

98,982

$

223,445

$

188,600

Available-for-sale securities - taxable

 

5,052

 

4,528

 

2,622

 

9,580

 

4,471

Available-for-sale securities - tax-exempt

 

2,554

 

2,553

 

3,571

 

5,107

 

7,365

Deposits with financial institutions

 

1,985

 

1,981

 

1,609

 

3,966

 

3,623

Dividends on bank stocks

 

161

 

78

 

364

 

239

 

626

Total interest income

 

123,098

 

119,239

 

107,148

 

242,337

 

204,685

Interest Expense

Deposits

 

63,700

 

62,111

 

48,663

 

125,811

 

85,388

Fed funds purchased and repurchase agreements

 

 

 

 

 

46

Federal Home Loan Bank advances

 

1,442

 

471

 

3,734

 

1,913

 

6,125

Other borrowings

 

64

 

63

 

212

 

127

 

366

Total interest expense

 

65,206

 

62,645

 

52,609

 

127,851

 

91,925

Net Interest Income

 

57,892

 

56,594

 

54,539

 

114,486

 

112,760

Provision for Credit Losses

 

2,383

 

1,655

 

2,640

 

4,038

 

7,061

Net Interest Income after Provision for Credit Losses

 

55,509

 

54,939

 

51,899

 

110,448

 

105,699

Non-Interest Income

Service charges and fees on client accounts

 

2,333

 

2,104

 

2,110

 

4,437

 

3,939

ATM and credit card interchange income

 

1,568

 

1,487

 

1,213

 

3,055

 

2,477

Gain on sale of loans

 

440

 

537

 

1,205

 

977

 

1,392

Income from bank-owned life insurance

 

501

 

456

 

418

 

957

 

829

Swap fees and credit valuation adjustments, net

 

88

 

158

 

84

 

246

 

174

Other non-interest income

 

771

 

847

 

749

 

1,618

 

1,389

Total non-interest income

 

5,701

 

5,589

 

5,779

 

11,290

 

10,200

Non-Interest Expense

Salaries and employee benefits

 

23,162

 

23,585

 

24,061

 

46,747

 

46,683

Occupancy

 

3,181

 

3,206

 

3,054

 

6,387

 

6,028

Professional fees

 

1,083

 

972

 

970

 

2,055

 

3,588

Deposit insurance premiums

 

1,851

 

1,906

 

1,881

 

3,757

 

3,412

Data processing

 

1,719

 

970

 

1,057

 

2,689

 

2,299

Advertising

 

491

 

558

 

649

 

1,049

 

1,401

Software and communication

 

1,833

 

1,824

 

1,655

 

3,657

 

3,306

Foreclosed assets, net

 

24

 

229

 

(21)

 

253

 

128

Core deposit intangible amortization

 

906

 

931

 

802

 

1,837

 

1,624

Other non-interest expense

 

3,475

 

3,324

 

3,304

 

6,799

 

7,035

Total non-interest expense

 

37,725

 

37,505

 

37,412

 

75,230

 

75,504

Net Income Before Taxes

 

23,485

 

23,023

 

20,266

 

46,508

 

40,395

Income tax expense

 

4,863

 

4,800

 

4,219

 

9,663

 

8,240

Net Income

$

18,622

$

18,223

$

16,047

$

36,845

$

32,155

Basic Earnings Per Common Share

$

0.37

$

0.36

$

0.33

$

0.74

$

0.66

Diluted Earnings Per Common Share

$

0.37

$

0.36

$

0.33

$

0.73

$

0.65


CROSSFIRST BANKSHARES, INC.

TABLE 3. YEAR-TO-DATE ANALYSIS OF CHANGES IN NET INTEREST INCOME – FTE (UNAUDITED)

Six Months Ended

 

June 30, 

 

2024

2023

 

Interest

Average

Interest

Average

 

Average

Income /

Yield /

Average

Income /

Yield /

 

    

Balance

    

Expense

    

Rate(3)

    

Balance

    

Expense

    

Rate(3)

 

(Dollars in thousands)

 

Interest-earning assets:

 

  

Securities - taxable

$

466,010

$

9,819

 

4.21

%  

$

302,763

$

5,097

 

3.37

%

Securities - tax-exempt - FTE(1)

 

392,077

 

6,179

 

3.15

 

527,047

 

8,912

 

3.38

Federal funds sold

 

 

 

873

 

6

 

1.39

Interest-bearing deposits in other banks

 

167,826

 

3,966

 

4.75

 

170,287

 

3,617

 

4.28

Gross loans, net of unearned income(2)

 

6,221,388

 

223,445

 

7.22

 

5,658,698

 

188,600

 

6.72

Total interest-earning assets - FTE(1)

 

7,247,301

$

243,409

 

6.75

%  

 

6,659,668

$

206,232

 

6.24

%

Allowance for loan losses

 

(74,864)

 

(64,664)

Other non-interest-earning assets

 

247,501

 

226,983

Total assets

$

7,419,938

$

6,821,987

Interest-bearing liabilities

Transaction deposits

$

839,363

$

15,287

 

3.66

%  

$

570,661

$

7,839

 

2.77

%

Savings and money market deposits

 

2,878,339

 

63,623

 

4.45

 

2,794,201

 

50,496

 

3.64

Time deposits

 

1,869,375

 

46,901

 

5.05

 

1,357,688

 

27,053

 

4.02

Total interest-bearing deposits

 

5,587,077

 

125,811

 

4.53

 

4,722,550

 

85,388

 

3.65

FHLB and short-term borrowings

 

113,038

 

1,913

 

3.40

 

311,471

 

6,423

 

4.16

Trust preferred securities, net of fair value adjustments

 

1,128

 

127

 

22.64

 

1,070

 

114

 

21.49

Non-interest-bearing deposits

 

904,850

 

 

 

1,057,268

 

 

Cost of funds

 

6,606,093

$

127,851

 

3.89

%  

 

6,092,359

$

91,925

 

3.04

%

Other liabilities

 

104,555

 

95,702

Stockholders’ equity

 

709,290

 

633,926

Total liabilities and stockholders’ equity

$

7,419,938

$

6,821,987

Net interest income - FTE(1)

$

115,558

$

114,307

Net interest spread - FTE(1)

 

2.86

%

 

3.20

%

Net interest margin - FTE(1)

 

3.20

%

 

3.46

%

(1)Tax exempt income is calculated on a tax-equivalent basis. Tax-free municipal securities are exempt from federal income taxes. The incremental income tax rate used is 21.0%.
(2)Average loan balances include non-accrual loans.
(3)Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this

release may not produce the same amounts.


CROSSFIRST BANKSHARES, INC.

TABLE 4. QUARTERLY ANALYSIS OF CHANGES IN NET INTEREST INCOME – FTE (UNAUDITED)

Three Months Ended

 

June 30, 2024

March 31, 2024

June 30, 2023

Interest

Average

Interest

Average

Interest

Average

 

Average

Income /

Yield /

Average

Income /

Yield /

Average

Income /

Yield /

 

    

Balance

    

Expense

    

Rate(3)

    

Balance

    

Expense

    

Rate(3)

    

Balance

    

Expense

    

Rate(3)

 

(Dollars in thousands)

 

Interest-earning assets:

Securities - taxable

$

485,849

$

5,213

 

4.29

%  

$

445,952

$

4,606

 

4.13

%  

$

336,446

$

2,986

 

3.55

%

Securities - tax-exempt - FTE(1)

 

391,655

 

3,090

 

3.16

 

392,505

 

3,089

 

3.15

 

511,993

 

4,321

 

3.38

Interest-bearing deposits in other banks

 

167,007

 

1,985

 

4.78

 

168,653

 

1,981

 

4.72

 

145,559

 

1,609

 

4.43

Gross loans, net of unearned income(2)

 

6,282,649

 

113,346

 

7.26

 

6,159,447

 

110,099

 

7.19

 

5,776,137

 

98,982

 

6.87

Total interest-earning assets - FTE(1)

 

7,327,160

$

123,634

 

6.78

%  

 

7,166,557

$

119,775

 

6.72

%  

 

6,770,135

$

107,898

 

6.39

%

Allowance for loan losses

 

(76,032)

 

(73,683)

 

(66,078)

Other non-interest-earning assets

 

243,813

 

251,228

 

225,915

Total assets

$

7,494,941

$

7,344,102

$

6,929,972

Interest-bearing liabilities

Transaction deposits

$

800,709

$

7,357

 

3.70

%  

$

878,446

$

7,930

 

3.63

%  

$

598,646

$

4,339

 

2.91

%

Savings and money market deposits

 

2,907,375

 

31,948

 

4.42

 

2,848,979

 

31,675

 

4.47

 

2,707,637

 

26,927

 

3.99

Time deposits

 

1,918,195

 

24,395

 

5.12

 

1,820,013

 

22,506

 

4.97

 

1,612,105

 

17,397

 

4.33

Total interest-bearing deposits

 

5,626,279

 

63,700

 

4.55

 

5,547,438

 

62,111

 

4.50

 

4,918,388

 

48,663

 

3.97

FHLB and short-term borrowings

 

147,816

 

1,442

 

3.92

 

77,874

 

471

 

2.43

 

349,763

 

3,888

 

4.46

Trust preferred securities, net of fair value adjustments

 

1,135

 

64

 

22.68

 

1,121

 

63

 

22.60

 

1,077

 

58

 

21.60

Non-interest-bearing deposits

 

909,434

 

 

 

900,216

 

 

 

921,259

 

 

Cost of funds

 

6,684,664

$

65,206

 

3.92

%  

 

6,526,649

$

62,645

 

3.86

%  

 

6,190,487

$

52,609

 

3.41

%

Other liabilities

 

101,044

 

108,105

 

91,994

Stockholders’ equity

 

709,233

 

709,348

 

647,491

Total liabilities and stockholders’ equity

$

7,494,941

$

7,344,102

$

6,929,972

Net interest income - FTE(1)

$

58,428

$

57,130

$

55,289

Net interest spread - FTE(1)

 

2.86

%

 

2.86

%

 

2.98

%

Net interest margin - FTE(1)

 

3.20

%

 

3.20

%

 

3.27

%

(1)Tax exempt income is calculated on a tax-equivalent basis. Tax-free municipal securities are exempt from federal income taxes. The incremental income tax rate used is 21.0%.
(2)Average loan balances include non-accrual loans.
(3)Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this release may not produce the same amounts.


CROSSFIRST BANKSHARES, INC.

TABLE 5. NON-GAAP FINANCIAL MEASURES

Non-GAAP Financial Measures

In addition to disclosing financial measures determined in accordance with U.S. generally accepted accounting principles (GAAP), the Company discloses non-GAAP financial measures in this release including “tangible common stockholders’ equity,” “tangible book value per common share,” “adjusted efficiency ratio – fully tax equivalent (FTE),” “adjusted net income,” “adjusted diluted earnings per common share,” “adjusted return on average assets (ROAA),” and “adjusted return on average common equity (ROCE).” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or gains that we believe are not indicative of our primary business operating results. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.

These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance.

A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures follows.

Three Months Ended

Six Months Ended

    

6/30/2024

    

3/31/2024

    

12/31/2023

    

9/30/2023

    

6/30/2023

    

6/30/2024

    

6/30/2023

(Dollars in thousands, except per share data)

Adjusted net income:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Net income

$

18,622

$

18,223

$

17,651

$

16,863

$

16,047

$

36,845

$

32,155

Add: Acquisition costs