UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
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)
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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 January 24, 2022, CrossFirst Bankshares, Inc. (the “Company”) issued a press release regarding its financial results for its fourth fiscal
quarter of 2021 and year ended December 31, 2021. A copy of the press release is attached hereto as Exhibit 99.1 and the Company’s
related investor presentation is furnished as Exhibit 99.2.
The information in Item 2.02 of this Current Report, including Exhibits 99.1, 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 set forth by specific reference in such a
filing.
Item 9.01. Financial Statements and Exhibits.
(d)
Exhibits
99.1
99.2
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:
January 24, 2022
CROSSFIRST BANKSHARES, INC.
By:
/s/ Benjamin R. Clouse
Benjamin R. Clouse
Chief Financial Officer
Exhibit 99.1
1
Heather Worley
Heather@crossfirst.com | (214) 676-4666
https://investors.crossfirstbankshares.com
CrossFirst Bankshares, Inc. Reports Fourth Quarter and Full Year 2021
Results
Fourth Quarter 2021 Key Financial Performance Metrics
Net Income
ROAA
Net Interest Margin
(FTE)
Diluted EPS
ROE
$20.8 million
1.50%
3.28%
$0.40
12.57%
LEAWOOD, Kan., January 24, 2022 (GLOBE NEWSWIRE) -- CrossFirst Bankshares, Inc. (Nasdaq: CFB), the bank holding company for
CrossFirst Bank, today reported operating results for the fourth quarter and full year 2021, with fourth quarter net income of $20.8 million,
or $0.40 per diluted share, and full year net income of $69.4 million, or $1.33 per diluted share.
CEO Commentary:
"We built significant momentum in 2021 with solid earnings, operating revenue at an all-time high and a return to loan growth in the last
half of the year. We also made meaningful progress this past year in deposit mix and growing fee income while making investments in
talent and technology to drive growth, serve our clients in extraordinary ways and deliver value to our shareholders,” said CrossFirst’s
CEO and President, Mike Maddox. “Our fourth quarter was a great capstone to the year with continued loan growth and significant
improvement in credit quality.”
2021 Fourth Quarter and Full Year Highlights:
•
$5.6 billion of assets with net income for the fiscal year ended December 31, 2021 of $69 million, an increase of $57 million
or 451% from the prior year ended December 31, 2020
•
Improvement in credit quality during 2021 as evidenced by the decrease in nonperforming assets to total assets ratio from
1.39% at December 31, 2020 to 0.58% at December 31, 2021
•
Return on Average Assets of 1.24% and a Return on Equity of 10.84% for the fiscal year ended December 31, 2021
•
Net Interest Margin (Fully Tax-Equivalent) of 3.15% for the fiscal year ended December 31, 2021, compared to 3.13% for
the prior year ended December 31, 2020
•
Annualized loan growth of 7% for the fourth quarter of 2021, excluding PPP loans
•
Non-interest-bearing deposit growth of 62% from December 31, 2020 which represented 25% of total deposits at December
31, 2021
Quarter-to-Date
Full Year
December 31,
December 31,
(Dollars in millions except per share data)
2021
2020
2021
2020
Operating revenue
(1)
$
48.2
$
44.5
$
182.4
$
172.0
Net income
$
20.8
$
8.1
$
69.4
$
12.6
Diluted earnings per share
$
0.40
$
0.15
$
1.33
$
0.24
Return on average assets
1.50
%
0.58
%
1.24
%
0.24
%
Return on average common equity
12.57
%
5.19
%
10.84
%
2.05
%
Non-GAAP core return on average tangible common equity
(2)
12.57
%
5.19
%
11.40
%
3.27
%
Net interest margin
3.22
%
3.07
%
3.09
%
3.08
%
Net interest margin, fully tax-equivalent
(3)
3.28
%
3.12
%
3.15
%
3.13
%
Efficiency ratio
55.38
%
53.35
%
54.50
%
58.13
%
Non-GAAP core operating efficiency ratio, fully tax-equivalent
(2)(3)
54.52
%
52.54
%
52.02
%
52.98
%
Represents a non-GAAP measure. See "Table 5. Non-GAAP Financial Measures" for a reconciliation of these measures.
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%.
CROSSFIRST BANKSHARES, INC.
2
Income from Operations
Net Interest Income
Interest income was $49.2 million for the fourth quarter of 2021, a decrease of 1% from the fourth quarter of 2020 and an increase of 4%
from the previous quarter. Interest income was slightly down from the fourth quarter of 2020 as a result of lower average loans
outstanding and a reduction of $4.5 million in PPP fee income. Average earning assets totaled $5.4 billion for the fourth quarter of 2021, a
decrease of $23 million or 1% from the same quarter in 2020. The tax-equivalent yield on earning assets increased from 3.62% to 3.70%
during the fourth quarter of 2021 compared to the previous quarter, mostly driven by loans moving off nonaccrual status. For full year
2021, interest income was $193.2 million, which declined compared to full year 2020 primarily due to the yield movements on earning
assets.
Interest expense for the fourth quarter of 2021 was $5.8 million, or 28% lower than the fourth quarter of 2020 and 4% higher than the
previous quarter. Average interest-bearing deposits decreased to $3.5 billion in the fourth quarter of 2021, or a 9% decrease from the same
prior year period. Cost of funds for the quarter was 0.48%, compared to 0.46% for the third quarter of 2021. During the fourth quarter of
2021, $40 million of FHLB advances were paid off early, which drove the cost of funds increase. Excluding the prepayment penalty, cost
of funds would have decreased 0.05% compared to the third quarter of 2021. For full year 2021, interest expense was $24.5 million, a
decrease of 43% compared to full year 2020 due to lower market rates.
Net interest income totaled $43.4 million for the fourth quarter of 2021 or 4% higher than the third quarter of 2021, and 5% higher than the
fourth quarter of 2020. Tax-equivalent net interest margin increased to 3.28% in the current quarter, from 3.20% in the previous quarter,
and increased from 3.12% in the same quarter in 2020. During the fourth quarter of 2021, CrossFirst realized $1.3 million in fees from the
forgiveness of $44 million of PPP loans. The Company will continue to recognize fees over the life of the loans or as the loans are
forgiven. The tax-equivalent adjustment, which accounts for income taxes saved on the interest earned on nontaxable securities and loans,
was $0.8 million for the fourth quarter of 2021. Full year 2021 net interest income grew to $168.7 million, an increase of 5% compared to
full year 2020, while tax-equivalent net interest margin increased to 3.15% from 3.13% for the prior year.
Non-Interest Income
Non-interest income increased $1.8 million in the fourth quarter of 2021 or 63% compared to the same quarter of 2020 and increased $5.9
million compared to the third quarter of 2021. The increase in non-interest income compared to the previous quarter was due to the $6.2
million impairment loss recorded in the previous quarter. The increase in non-interest income compared to the same quarter of 2020, was
primarily due to increases of $0.9 million in credit card fees and $0.4 million in service charge income. Full year 2021 non-interest income
was up $1.9 million or 16% compared to full year 2020. The main drivers of the increase were increases in service charges and fees on
customer accounts of $1.8 million, $1.7 million in income from bank-owned life insurance and a $3.6 million increase in ATM and credit
card interchange income.
Non-Interest Expense
Non-interest expense for the fourth quarter of 2021 was $26.7 million, which increased 13% compared to the fourth quarter of 2020 and
increased 11% from the third quarter of 2021. Salaries and benefit costs were higher in the current quarter by $1.1 million compared to the
prior quarter and $1.7 million higher than the same quarter in the prior year mainly due to increased hiring for market expansion and
increased incentive expenses. Full year 2021 non-interest expense decreased $0.6 million or 1% compared to full year 2020 primarily due
to a $7.4 million goodwill impairment recorded in the second quarter of 2020. This decrease was partly offset by a $3.3 million increase in
salary and employee benefits, $1.0 million increase in occupancy, and $2.8 million increase in other non-interest expense as compared to
the prior year. The other non-interest expense increase was primarily due to increases in commercial card costs as a result of our growing
customer base and increased use as a result of the COVID-19 pandemic. In addition, insured cash sweep (“ICS”) deposits increased in
2021 from 2020, which drove related fees higher.
CrossFirst’s effective tax rate for the fourth quarter of 2021 was 22% as compared to 18% for the fourth quarter of 2020. The 2021 tax
rate for the quarter increased due to a greater mix of taxable income to tax-exempt income. For both comparable periods, the Company
continued to benefit from the tax-exempt municipal bond portfolio and bank-owned life insurance. The tax-exempt benefit diminishes as
the Company’s ratio of taxable income to tax-exempt income increases.
CROSSFIRST BANKSHARES, INC.
3
Balance Sheet Performance & Analysis
During the fourth quarter of 2021, total assets increased by $220 million or 4% compared to September 30, 2021, and decreased $38
million or 1% compared to December 31, 2020. Total assets increased on a linked quarter basis primarily due to a $166 million increase in
cash and cash equivalents and decreased year-over-year primarily due to a $186 million decline in loans driven by the PPP loan
forgiveness program. The year-over-year decrease was partly offset by increases in cash and cash equivalents and securities of $74 million
and $91 million, respectively. Non-interest-bearing deposits increased $202 million compared to September 30, 2021, and increased $445
million from December 31, 2020. During the fourth quarter of
2021
, available-for-sale investment securities increased $38 million to $746
million compared to September 30, 2021. The securities yields increased
2
quarter of
2021
Loan Results
During the fourth quarter of 2021, the Company experienced a decrease in average loans of $10 million compared to September 30, 2021,
and a decrease of $273 million or 6% compared to December 31, 2020. The year-over-year reduction in average loans was primarily a
result of PPP loan forgiveness. Net of PPP loans, average loans grew 1% compared to September 30, 2021. Loan yields increased 17 basis
points to 4.17% during the fourth quarter of 2021 and increased 17 basis points over the last twelve months.
4Q21
3Q21
2Q21
1Q21
4Q20
QoQ
Growth
($)
QoQ
Growth
(%)
(1)
YoY
Growth
($)
YoY
Growth
(%)
(1)
(Dollars in millions)
Average loans (gross)
Commercial
$
1,328
$
1,233
$
1,221
$
1,329
$
1,367
$
95
8
%
$
(39)
(3)
%
Energy
290
311
341
351
381
(21)
(7)
(91)
(24)
Commercial real estate
1,272
1,213
1,203
1,183
1,194
59
5
78
7
Construction and land development
579
611
633
598
585
(32)
(5)
(6)
(1)
Residential and multifamily real estate
612
659
659
688
664
(47)
(7)
(52)
(8)
Paycheck Protection Program
84
147
296
308
258
(63)
(43)
(174)
(67)
Consumer
56
57
56
50
45
(1)
(2)
11
24
Total
$
4,221
$
4,231
$
4,409
$
4,507
$
4,494
$
(10)
(0)
%
$
(273)
(6)
%
Yield on average loans for the period
ending
4.17
%
4.00
%
3.99
%
3.94
%
4.00
%
(1)
Actual unrounded values are used to calculate the reported percent disclosed. Accordingly, recalculations using the amounts in millions as disclosed in this release may not
produce the same amounts.
Deposit & Other Borrowing Results
During the fourth quarter of 2021, the Company experienced an increase in average deposits of 2% compared to September 30, 2021, and
a less than 1% decline in average deposits compared to December 31, 2020. The deposit growth for the quarter was driven by a continued
increase in non-interest-bearing deposits, which represented 25% of total deposits at December 31, 2021. In addition, the Company
continued to improve the overall cost of deposits, which declined 5 basis points during the fourth quarter of 2021. The cost of interest-
bearing deposits has declined 26 basis points over the last twelve months primarily as a result of the lower interest rate environment.
4Q21
3Q21
2Q21
1Q21
4Q20
QoQ
Growth
($)
QoQ
Growth
(%)
(1)
YoY
Growth
($)
YoY
Growth
(%)
(1)
(Dollars in millions)
Average deposits
Non-interest bearing deposits
$
1,058
$
910
$
802
$
731
$
732
$
148
16
%
$
326
45
%
Transaction deposits
543
511
665
717
575
32
6
(32)
(6)
Savings and money market deposits
2,272
2,276
2,385
2,422
2,158
(4)
(0)
114
5
Time deposits
662
752
869
972
1,087
(90)
(12)
(425)
(39)
Total
$
4,535
$
4,449
$
4,721
$
4,842
$
4,552
$
86
2
%
$
(17)
(0)
%
Cost of deposits for the period ending
0.33
%
0.38
%
0.41
%
0.48
%
0.58
%
Cost of interest-bearing deposits for the
period ending
0.43
%
0.47
%
0.50
%
0.57
%
0.69
%
(1)
Actual unrounded values are used to calculate the reported percent disclosed. Accordingly, recalculations using the amounts in millions as disclosed in this release may
not produce the same amounts.
At December 31, 2021, other borrowings totaled $238 million, as compared to $278 million at September 30, 2021, and $296 million at
December 31, 2020.
CROSSFIRST BANKSHARES, INC.
4
Asset Quality Position
Credit quality metrics continued to improve during the fourth quarter of 2021 as classified assets decreased $45 million and the ratio of
nonperforming assets to total assets decreased to 0.58% from 0.92% in the previous quarter. The improvements in credit metrics were
primarily driven by upgrades in COVID-19 impacted segments and the Energy portfolio. Net charge-offs were $0.8 million for the fourth
quarter of 2021 as compared to $1.3 million for the third quarter of 2021. The charge-offs for the current quarter were related to energy
and commercial and industrial credits.
The overall decrease in the allowance for loan losses for the current quarter reflects some stabilization in the Company’s economic outlook
and improved credit performance. These factors resulted in a $5 million release of reserves during the fourth quarter of 2021. The
following table provides information regarding asset quality.
Asset quality
4Q21
3Q21
2Q21
1Q21
4Q20
Non-accrual loans
$
31.4
$
48.1
$
54.7
$
63.3
$
75.1
Other real estate owned
1.1
1.1
1.7
2.3
2.3
Nonperforming assets
32.7
49.8
58.1
68.9
78.4
Loans 90+ days past due and still accruing
0.1
0.5
1.8
3.2
1.0
Loans 30 - 89 days past due
3.5
37.6
18.8
11.0
18.1
Net charge-offs (recoveries)
0.8
1.3
2.6
8.2
11.6
Asset quality metrics
(%)
4Q21
3Q21
2Q21
1Q21
4Q20
Nonperforming assets to total assets
0.58
%
0.92
%
1.09
%
1.15
%
1.39
%
Allowance for loan loss to total loans
1.37
1.51
1.78
1.65
1.70
Allowance for loan loss to nonperforming loans
185
132
134
112
99
Net charge-offs (recoveries) to average loans
(1)
0.07
0.13
0.23
0.74
1.03
Provision to average loans
(1)
(0.47)
(0.94)
0.32
0.67
0.96
Classified Loans / (Total Capital + ALLL)
10.8
17.3
24.0
38.2
40.9
(1)
Interim periods annualized.
Capital Position
At December 31, 2021, stockholders' equity totaled $668 million, or $13.23 per share, compared to $624 million, or $12.08 per share, at
December 31, 2020. During the fourth quarter of 2021, CrossFirst continued its $30 million share repurchase program by purchasing
566,164 shares or 1% of common stock outstanding.
The ratio of common equity Tier 1 capital to risk-weighted assets was approximately 12% and the total capital to risk-weighted assets was
approximately 14% at December 31, 2021. The Company remains well-capitalized.
CROSSFIRST BANKSHARES, INC.
5
Conference Call and Webcast
CrossFirst will hold a conference call to review fourth quarter and full-year 2021 financial results on Tuesday, January 25, 2022, at 10 a.m.
CT / 11 a.m. ET. The results are scheduled to be released after the market closes on Monday, January 24, 2022. 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 (877) 621-5851 at least fifteen minutes prior to the start of the
call and provide conference number 9688475. International callers should dial +1 (470) 495-9492 and enter the same conference number.
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/rienoizn. 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 (855) 859-2056 and provide conference number 9688475, passcode 9067. International callers should dial +1 (404) 537-3406
and enter the same confirmation number. A replay of the webcast will also be available for 90 days on the company’s website
https://investors.crossfirstbankshares.com/.
Cautionary Notice about Forward-Looking Statements
The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company’s Annual Report on
Form 10-K is filed. This earnings release contains forward-looking statements. These forward-looking statements reflect the Company's
current views with respect to, among other things, future events and its financial performance. Any statements about management’s
expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may
be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,”
“can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,”
“intends” and similar words or phrases. Any forward-looking statements in this earnings release may turn out to be inaccurate. The
inclusion of forward-looking information in this earnings release 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. The Company has based these forward-looking statements
largely on its current expectations and projections about future events and financial trends that it believes may affect its financial
condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in
such forward-looking statements.
Accordingly, the Company cautions you that any such forward-looking statements are not a guarantee of future performance and that
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. Such factors include, without limitation, those listed from time to time in reports that the Company files with the
Securities and Exchange Commission as well as the uncertain impact of the COVID-19 pandemic. These forward-looking statements are
made as of the date of this communication, and the Company does not intend, and assumes no obligation, to update any forward-looking
statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated
events or circumstances, except as required by law.
About CrossFirst Bank
CrossFirst Bankshares, Inc. (Nasdaq: CFB) is a Kansas corporation and a registered bank holding company for its wholly owned
subsidiary CrossFirst Bank, which is headquartered in Leawood, Kansas. CrossFirst has nine full-service banking locations in Kansas,
Missouri, Oklahoma, Texas, and Arizona that offer products and services to businesses, professionals, individuals, and families.
CROSSFIRST BANKSHARES, INC.
6
Unaudited Financial Tables
◦
◦
◦
◦
◦
CROSSFIRST BANKSHARES, INC.
7
TABLE 1. CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of December 31,
2021
2020
(Dollars in thousands)
Assets
Cash and cash equivalents
$
482,727
$
408,810
Available-for-sale securities - taxable
192,146
177,238
Available-for-sale securities - tax-exempt
553,823
477,350
Loans, net of allowance for loan losses of $58,375 and $75,295 at December 31, 2021 and 2020,
respectively
4,197,838
4,366,602
Premises and equipment, net
66,069
70,509
Restricted equity securities
11,927
15,543
Interest receivable
16,023
17,236
Foreclosed assets held for sale
1,148
2,347
Bank-owned life insurance
67,498
67,498
Other
32,258
56,170
Total assets
$
5,621,457
$
5,659,303
Liabilities and stockholders’ equity
Deposits
Noninterest-bearing
$
1,163,224
$
718,459
Savings, NOW and money market
2,895,986
2,932,799
Time
624,387
1,043,482
Total deposits
4,683,597
4,694,740
Federal funds purchased and repurchase agreements
-
2,306
Federal Home Loan Bank advances
236,600
293,100
Other borrowings
1,009
963
Interest payable and other liabilities
32,678
43,766
Total liabilities
4,953,884
5,034,875
Stockholders’ equity
Common stock, $0.01 par value:
authorized - 200,000,000 shares, issued - 52,590,015 and 52,289,129 shares at December
31, 2021 and 2020, respectively
526
523
Treasury stock, at cost:
2,139,970 and 609,613 shares held at December 31, 2021 and 2020, respectively
(28,347)
(6,061)
Additional paid-in capital
526,806
522,911
Retained earnings
147,099
77,652
Accumulated other comprehensive income
21,489
29,403
Total stockholders’ equity
667,573
624,428
Total liabilities and stockholders’ equity
$
5,621,457
$
5,659,303
CROSSFIRST BANKSHARES, INC.
8
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2021
2020
2021
2020
(Dollars in thousands except per share data)
Interest Income
Loans, including fees
$
44,392
$
45,147
$
174,660
$
183,738
Available-for-sale securities - taxable
850
899
3,273
5,073
Available-for-sale securities - tax-exempt
3,623
3,255
14,033
13,013
Deposits with financial institutions
143
56
502
639
Dividends on bank stocks
194
177
682
985
Total interest income
49,202
49,534
193,150
203,448
Interest Expense
Deposits
3,734
6,610
18,523
36,585
Fed funds purchased and repurchase agreements
-
2
3
164
Federal Home Loan Bank Advances
1,999
1,361
5,837
6,341
Other borrowings
24
24
96
109
Total interest expense
5,757
7,997
24,459
43,199
Net Interest Income
43,445
41,537
168,691
160,249
Provision for Loan Losses
(5,000)
10,875
(4,000)
56,700
Net Interest Income after Provision for Loan Losses
48,445
30,662
172,691
103,549
Non-Interest Income
Service charges and fees on customer accounts
1,250
856
4,580
2,803
Realized gains on available-for-sale securities
(20)
(21)
1,023
1,704
Gain on sale of loans
-
44
-
44
Gains (losses), net on equity securities
(82)
(6)
(6,325)
47
Income from bank-owned life insurance
395
436
3,483
1,809
Swap fees and credit valuation adjustments, net
119
(284)
275
(204)
ATM and credit card interchange income
2,427
1,516
7,996
4,379
Other non-interest income
707
408
2,628
1,151
Total non-interest income
4,796
2,949
13,660
11,733
Non-Interest Expense
Salaries and employee benefits
16,468
14,725
61,080
57,747
Occupancy
2,381
2,427
9,688
8,701
Professional fees
981
1,120
3,519
4,218
Deposit insurance premiums
710
1,150
3,705
4,301
Data processing
742
654
2,878
2,719
Advertising
756
349
2,090
1,219
Software and communication
1,136
978
4,234
3,750
Foreclosed assets, net
17
74
697
1,239
Goodwill impairment
-
-
-
7,397
Other non-interest expense
3,524
2,255
11,491
8,677
Total non-interest expense
26,715
23,732
99,382
99,968
Net Income Before Taxes
26,526
9,879
86,969
15,314
Income tax expense
5,725
1,785
17,556
2,713
Net Income
$
20,801
$
8,094
$
69,413
$
12,601
Basic Earnings Per Share
$
0.41
$
0.16
$
1.35
$
0.24
Diluted Earnings Per Share
$
0.40
$
0.15
$
1.33
$
0.24
CROSSFIRST BANKSHARES, INC.
9
TABLE 3. YEAR-TO-DATE ANALYSIS OF CHANGES IN NET INTEREST
INCOME
(UNAUDITED)
Twelve Months Ended
December 31,
2021
2020
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(3)
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(3)
(Dollars in thousands)
Interest-earning assets:
Securities - taxable
$
204,889
$
3,955
1.93
%
$
267,715
$
6,058
2.26
%
Securities - tax-exempt
(1)
518,058
16,981
3.28
447,324
15,745
3.52
Federal funds sold
-
-
-
1,020
18
1.73
Interest-bearing deposits in other banks
389,893
502
0.13
179,978
621
0.35
Gross loans, net of unearned income
(2)
4,340,791
174,660
4.02
4,310,345
183,738
4.26
Total interest-earning assets
(1)
5,453,631
$
196,098
3.60
%
5,206,382
$
206,180
3.96
%
Allowance for loan losses
(73,544)
(68,897)
Other non-interest-earning assets
211,384
220,994
Total assets
$
5,591,471
$
5,358,479
Interest-bearing liabilities
Transaction deposits
$
608,063
$
1,152
0.19
%
$
447,777
$
1,696
0.38
%
Savings and money market deposits
2,338,315
8,225
0.35
1,993,964
14,033
0.70
Time deposits
812,774
9,146
1.13
1,155,492
20,856
1.80
Total interest-bearing deposits
3,759,152
18,523
0.49
3,597,233
36,585
1.02
FHLB and short-term borrowings
279,379
5,840
2.09
417,956
6,508
1.56
Trust preferred securities, net of fair value
adjustments
982
96
9.76
939
106
11.34
Non-interest-bearing deposits
876,309
-
-
684,294
-
-
Cost of funds
4,915,822
$
24,459
0.50
%
4,700,422
$
43,199
0.92
%
Other liabilities
35,447
43,331
Stockholders’ equity
640,202
614,726
Total liabilities and stockholders' equity
$
5,591,471
$
5,358,479
Net interest income
(1)
$
171,639
$
162,981
Net interest spread
(1)
3.10
%
3.04
%
Net interest margin
(1)
3.15
%
3.13
%
(1)
(2)
Average loan balances include nonaccrual 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.
10
YEAR-TO-DATE VOLUME & RATE VARIANCE TO NET INTEREST INCOME (UNAUDITED)
Twelve Months Ended
December 31, 2021 over 2020
Average Volume
Yield/Rate
Net Change
(2)
(Dollars in thousands)
Interest Income
Securities - taxable
$
(1,297)
$
(806)
$
(2,103)
Securities - tax-exempt
(1)
2,364
(1,128)
1,236
Federal funds sold
(18)
-
(18)
Interest-bearing deposits in other banks
437
(556)
(119)
Gross loans, net of unearned income
1,294
(10,372)
(9,078)
Total interest income
(1)
2,780
(12,862)
(10,082)
Interest Expense
Transaction deposits
483
(1,027)
(544)
Savings and money market deposits
2,092
(7,900)
(5,808)
Time deposits
(5,193)
(6,517)
(11,710)
Total interest-bearing deposits
(2,618)
(15,444)
(18,062)
FHLB and short-term borrowings
(2,518)
1,850
(668)
Trust preferred securities, net of fair value adjustments
5
(15)
(10)
Total interest expense
(5,131)
(13,609)
(18,740)
Net interest income
(1)
$
7,911
$
747
$
8,658
(1)
rate used is 21.0%.
(2)
CROSSFIRST BANKSHARES, INC.
11
TABLE 4. 2020 - 2021 QUARTERLY ANALYSIS OF CHANGES IN NET INTEREST INCOME
(UNAUDITED)
Three Months Ended
December 31,
2021
2020
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(3)
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(3)
(Dollars in thousands)
Interest-earning assets:
Securities - taxable
$
196,576
$
1,044
2.11
%
$
215,348
$
1,075
1.99
%
Securities - tax-exempt
(1)
547,948
4,385
3.17
458,651
3,939
3.42
Federal funds sold
-
-
-
-
-
-
Interest-bearing deposits in other banks
387,828
143
0.15
208,650
56
0.11
Gross loans, net of unearned income
(2)
4,220,842
44,392
4.17
4,493,806
45,147
4.00
Total interest-earning assets
(1)
5,353,194
$
49,964
3.70
%
5,376,455
$
50,217
3.71
%
Allowance for loan losses
(64,102)
(80,770)
Other non-interest-earning assets
201,390
227,511
Total assets
$
5,490,482
$
5,523,196
Interest-bearing liabilities
Transaction deposits
$
543,088
$
216
0.16
%
$
574,811
$
306
0.21
%
Savings and money market deposits
2,272,307
1,824
0.32
2,158,044
2,344
0.43
Time deposits
661,978
1,694
1.02
1,086,825
3,960
1.45
Total interest-bearing deposits
3,477,373
3,734
0.43
3,819,680
6,610
0.69
FHLB and short-term borrowings
261,600
1,999
3.03
304,923
1,363
1.78
Trust preferred securities, net of fair value
adjustments
1,000
24
9.67
954
24
9.97
Non-interest-bearing deposits
1,058,462
-
-
732,028
-
-
Cost of funds
4,798,435
$
5,757
0.48
%
4,857,585
$
7,997
0.65
%
Other liabilities
35,632
45,115
Stockholders’ equity
656,415
620,496
Total liabilities and stockholders' equity
$
5,490,482
$
5,523,196
Net interest income
(1)
$
44,207
$
42,220
Net interest spread
(1)
3.22
%
3.06
%
Net interest margin
(1)
3.28
%
3.12
%
(1)
(2)
Average gross 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.
12
QUARTER-TO-DATE VOLUME & RATE VARIANCE TO NET INTEREST INCOME (UNAUDITED)
Three Months Ended
December 31, 2021 over 2020
Average Volume
Yield/Rate
Net Change
(2)
(Dollars in thousands)
Interest Income
Securities - taxable
$
(95)
$
64
$
(31)
Securities - tax-exempt
(1)
745
(299)
446
Federal funds sold
-
-
-
Interest-bearing deposits in other banks
61
26
87
Gross loans, net of unearned income
(2,710)
1,955
(755)
Total interest income
(1)
(1,999)
1,746
(253)
Interest Expense
Transaction deposits
(17)
(73)
(90)
Savings and money market deposits
116
(636)
(520)
Time deposits
(1,289)
(977)
(2,266)
Total interest-bearing deposits
(1,190)
(1,686)
(2,876)
FHLB and short-term borrowings
(216)
852
636
Trust preferred securities, net of fair value adjustments
1
(1)
-
Total interest expense
(1,405)
(835)
(2,240)
Net interest income
(1)
$
(594)
$
2,581
$
1,987
(1)
(2)
CROSSFIRST BANKSHARES, INC.
13
TABLE 5. NON-GAAP FINANCIAL MEASURES
Non-GAAP Financial Measures
In addition to disclosing financial measures determined in accordance with GAAP, the Company discloses non-GAAP financial measures
in this release. The Company believes that the non-GAAP financial measures presented in this release reflect industry conventions, or
standard measures within the industry, and provide useful information to the Company's management, investors and other parties
interested in the Company's operating performance. These measurements should be considered in addition to, but not as a substitute for,
financial information prepared in accordance with GAAP. We have defined below each of the non-GAAP measures we use in this release,
but these measures may not be synonymous to similar measurement terms used by other companies.
CrossFirst provides reconciliations of these non-GAAP measures below. The measures used in this release include the following:
•
We calculate ‘‘non-GAAP core operating income’’ as net income adjusted to remove non-recurring or non-core income and
expense items related to:
▪
Goodwill impairment - We performed an interim review of goodwill as of June 30, 2020. The book value of goodwill
exceeded its fair market value and resulted in a full $7.4 million impairment.
▪
Charges and adjustments associated with the full vesting of a former executive - We incurred additional charges in the second
quarter of 2021 related to the acceleration of $0.7 million of certain cash, stock-based compensation, and employee costs.
▪
Bank Owned Life Insurance - We obtain bank owned life insurance on key employees throughout the organization and
received a $1.8 million benefit in the second quarter of 2021.
▪
Unrealized loss on equity security – During the quarter ended September 30, 2021, the Company recorded a $6.2 million
impairment loss related to an equity investment that was received as part of a restructured loan agreement.
The most directly comparable GAAP financial measure for non-GAAP core operating income is net income.
•
We calculate "core return on average tangible common equity" as non-GAAP core operating income (as defined above)
divided by average tangible common equity. Average tangible common equity is calculated as average common equity less
average goodwill and intangibles and average preferred equity. The most directly comparable GAAP measure is return on
average common equity.
•
We calculate "non-GAAP core operating return on average assets" as non-GAAP core operating income (as defined above)
divided by average assets. The most directly comparable GAAP financial measure is return on average assets, which is
calculated as net income divided by average assets.
•
We calculate ‘‘non-GAAP core operating return on average common equity’’ as non-GAAP core operating income (as
defined above) less preferred dividends divided by average common equity. The most directly comparable GAAP financial
measure is return on average common equity, which is calculated as net income less preferred dividends divided by average
common equity.
•
We calculate "tangible common stockholders' equity" as total stockholders' equity less goodwill and intangibles and
preferred equity. The most directly comparable GAAP measure is total stockholders' equity.
•
We calculate ‘‘tangible book value per share’’ as tangible common stockholders' equity (as defined above) divided by the
total number of shares outstanding. The most directly comparable GAAP measure is book value per share.
•
We calculate "non-GAAP core operating efficiency ratio - fully tax equivalent (FTE)" as non-interest expense adjusted to
remove non-recurring, or non-core, non-interest expenses as defined above under non-GAAP core operating income divided
by net interest income on a fully tax-equivalent basis plus non-interest income adjusted to remove non-recurring, or non-
core, non-interest income as defined above under non-GAAP core operating income. The most directly comparable financial
measure is the efficiency ratio.
•
We calculate "non-GAAP pre-tax pre-provision profit" as net income before taxes plus the provision for loan losses.
CROSSFIRST BANKSHARES, INC.
13
Quarter Ended
Twelve Months Ended
12/31/2021
9/30/2021
6/30/2021
3/31/2021
12/31/2020
12/31/2021
12/31/2020
(Dollars in thousands)
Non-GAAP core operating income:
Net income
$
20,801
$
21,000
$
15,577
$
12,035
$
8,094
$
69,413
$
12,601
Add: Unrealized loss on equity security
-
6,200
-
-
-
6,200
-
Less: Tax effect
(2)
-
1,302
-
-
-
1,302
-
Unrealized loss on equity security, net of tax
-
4,898
-
-
-
4,898
-
Add: Goodwill impairment
(1)
-
-
-
-
-
-
7,397
Add: Accelerated employee benefits
-
-
719
-
-
719
-
Less: Tax effect
(3)
-
-
210
-
-
210
-
Accelerated employee benefits, net of tax
-
-
509
-
-
509
-
Less: BOLI settlement benefits
(1)
-
-
1,841
-
-
1,841
-
Non-GAAP core operating income
$
20,801
$
25,898
$
14,245
$
12,035
$
8,094
$
72,979
$
19,998
(1)
No tax effect.
(2)
Represents the tax impact of the adjustments at a tax rate of 21.0%.
(3)
Represents the tax impact of the adjustments above at a tax rate of 21.0%, plus a permanent tax benefit associated with stock-based grants.
Quarter Ended
Twelve Months Ended
12/31/2021
9/30/2021
6/30/2021
3/31/2021
12/31/2020
12/31/2021
12/31/2020
(Dollars in thousands)
Non-GAAP core return on average tangible common equity:
Net income available to common stockholders
$
20,801
$
21,000
$
15,577
$
12,035
$
8,094
$
69,413
$
12,601
Non-GAAP core operating income
20,801
25,898
14,245
12,035
8,094
72,979
19,998
Average common equity
656,415
644,715
633,417
625,875
620,496
640,202
614,726
Less: average goodwill and intangibles
140
160
179
199
218
170
3,898
Average tangible common equity
$
656,275
$
644,555
$
633,238
$
625,676
$
620,278
$
640,032
$
610,828
Return on average common equity
12.57
%
12.92
%
9.86
%
7.80
%
5.19
%
10.84
%
2.05
%
Non-GAAP core return on average tangible common
equity
12.57
%
15.94
%
9.02
%
7.80
%
5.19
%
11.40
%
3.27
%
Quarter Ended
Twelve Months Ended
12/31/2021
9/30/2021
6/30/2021
3/31/2021
12/31/2020
12/31/2021
12/31/2020
(Dollars in thousands)
Non-GAAP core operating return on average assets:
Net income
$
20,801
$
21,000
$
15,577
$
12,035
$
8,094
$
69,413
$
12,601
Non-GAAP core operating income
20,801
25,898
14,245
12,035
8,094
72,979
19,998
Average assets
$
5,490,482
$
5,408,984
$
5,673,638
$
5,798,167
$
5,523,196
$
5,591,471
$
5,358,479
Return on average assets
1.50
%
1.54
%
1.10
%
0.84
%
0.58
%
1.24
%
0.24
%
Non-GAAP core operating return on average assets
1.50
%
1.90
%
1.01
%
0.84
%
0.58
%
1.31
%
0.37
%
CROSSFIRST BANKSHARES, INC.
14
Quarter Ended
12/31/2021
9/30/2021
6/30/2021
3/31/2021
12/31/2020
(Dollars in thousands except per share data)
Tangible common stockholders' equity:
Total stockholders' equity
$
667,573
$
652,407
$
637,190
$
628,834
$
624,428
Less: goodwill and other intangible assets
130
149
169
188
208
Tangible common stockholders' equity
$
667,443
$
652,258
$
637,021
$
628,646
$
624,220
Tangible book value per share:
Tangible common stockholders' equity
$
667,443
$
652,257
$
637,021
$
628,646
$
624,220
Shares outstanding at end of period
50,450,045
51,002,698
50,958,680
51,678,669
51,679,516
Book value per share
$
13.23
$
12.79
$
12.50
$
12.17
$
12.08
Tangible book value per share
$
13.23
$
12.79
$
12.50
$
12.16
$
12.08
Quarter Ended
Twelve Months Ended
12/31/2021
9/30/2021
6/30/2021
3/31/2021
12/31/2020
12/31/2021
12/31/2020
(Dollars in thousands)
Non-GAAP Core Operating Efficiency Ratio - Fully Tax
Equivalent (FTE)
Non-interest expense
$
26,715
$
24,036
$
25,813
$
22,818
$
23,732
$
99,382
$
99,968
Less: Accelerated employee benefits
-
-
719
-
-
719
-
Less: goodwill impairment
-
-
-
-
-
-
7,397
Adjusted Non-interest expense (numerator)
$
26,715
$
24,036
$
25,094
$
22,818
$
23,732
$
98,663
$
92,571
Net interest income
43,445
41,801
42,328
41,117
41,537
168,691
160,249
Tax equivalent interest income
(1)
762
748
734
704
683
2,948
2,732
Non-interest income (loss)
4,796
(1,105)
5,825
4,144
2,949
13,660
11,733
Add: Unrealized loss on equity security
-
6,200
-
-
-
6,200
-
Less: BOLI settlement benefits
-
-
1,841
-
-
1,841
-
Total tax-equivalent income (denominator)
$
49,003
$
47,644
$
47,046
$
45,965
$
45,169
$
189,658
$
174,714
Efficiency Ratio
55.38
%
59.06
%
53.61
%
50.41
%
53.35
%
54.50
%
58.13
%
Non-GAAP Core Operating Efficiency Ratio - Fully Tax
Equivalent (FTE)
54.52
%
50.45
%
53.34
%
49.64
%
52.54
%
52.02
%
52.98
%
(1)
Tax exempt income (tax-free municipal securities) is calculated on a tax equivalent basis. The incremental tax rate used is 21.0%.
Quarter Ended
Twelve Months Ended
12/31/2021
9/30/2021
6/30/2021
3/31/2021
12/31/2020
12/31/2021
12/31/2020
(Dollars in thousands)
Non-GAAP Pre-Tax Pre-Provision Profit
Net income before taxes
$
26,526
$
26,660
$
18,840
$
14,943
$
9,879
$
86,969
$
15,314
Add: Provision for loan losses
(5,000)
(10,000)
3,500
7,500
10,875
(4,000)
56,700
Non-GAAP Pre-Tax Pre-Provision Profit
$
21,526
$
16,660
$
22,340
$
22,443
$
20,754
$
82,969
$
72,014
Exhibit 99.1
CROSSFIRST BANKSHARES, INC.TM Q4 2021
Earnings Presentation
January 24, 2022
Mike Maddox, President & CEO
Ben Clouse, CFO
Randy Rapp, CCO & CRO
Heather Worley, Director of IR
Legal
disclaimer
CROSSFIRST BANK
FORWARD
-
LOOKING STATEMENTS.
The financial results in this presentation reflect preliminary, unaudited results, which are not final until the Company’s An
nual Report on Form 10
K is filed.
This presentation and oral statements made during this meeting conta
in forward
looking statements. These forward
looking statements reflect our current views with respect to, among other things, future events and our financial performance
. These statements are often, but not always, made through the use of words or phrases
such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "continue," "will," "anticipate," "se
ek," "estimate," "intend," "plan," "strive," "projection," "goal," "target," "outlook," "aim," "would," "annualized" and "out
look,
" or the negative version of those words or other comparable words or phrases of a future or forward
looking nature. These forward
looking statements are not historical facts, and are based on current expectations, estimates and projections about our indus
try, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertai
n and beyond our control. Accordingly, we caution you that any such forward
-
looking statements are not guarantees of future perform
ance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe th
at the expectations reflected in these forward
looking statements are reasonable as of the date made, actual results may prove to b
e materially different from the results expressed or implied by the forward
looking statements. There are or will be important factors that could cause our actual results to differ materially from thos
e indicated in these forward
looking statements, includ
ing, but not limited to, the
following: risks relating to the COVID
19 pandemic; risks related to general business and economic conditions and any regulatory responses to such conditions; our a
bility to effectively execute our
growth strategy and manage ou
r growth, including identifyi
ng and consummating suitable mergers and acquisitions; the geographic concentration of our markets; fluctuation of the fair v
alue of our investment securities due to factors outside our control; our ability to successfully mana
ge our credit risk and
the sufficiency of our allowance;
regulatory restrictions on our ability to grow due to our concentration in commercial real estate lending; our ability to att
ract, hire and retain qualified management personnel; interest rate fluctu
ations; our ability to raise
or maintain sufficient capital; competition from banks, credit unions and other financial services providers; the effectivene
ss of our risk management framework in mitigating risks and losses; our ability to maintain effective
internal control over financial reporting; our ability to keep pace with technological changes; system failures and interrupt
ions, cyber
attacks and security breaches; employee error, fraudulent activity by employees or clients and inaccurate or incomplete
information about our clients and counterparties; our ability to maintain our reputation; costs and effects of litigation, in
vestigations or similar matters; risk exposure from transactions with financial counterparties; severe weather, acts of god,
acts
of war or terrorism; compliance with governmental and regulatory requirements; changes in the laws, rules, regulations, inter
pretations or policies relating to financial institutions, accounting, tax, trade, monetary and fiscal matters; compliance wi
th req
uirements associated
with bei
ng a public company; level of coverage of our business by securities analysts; and future equity issuances.
Any forward
-
looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to
update or review any forward
-
looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
NON
GAAP FINANCIAL INFORMATION.
This presentation contains certain non
GAAP measures.
These non
GAAP measu
res, as calculated by CrossFirst, are not necessarily comparable to similarly titled measures reported by other companies.
Additionally, these non
GAAP measures are not measures of financial performance or liquidity under GAAP and should not be considered
alternatives to the Company’s
other financial information determined under GAAP. See reconciliations of certain non
GAAP measures included at the end of this presentation.
MARKET AND INDUSTRY DATA.
This presentation references certain market, industry and demographic data, forecasts and other statistical information. We h
ave obtained this data, forecasts and information from various independent, third party industry sources and publications. No
thing
in the data, forecasts or information used or derived from third party sources should be construed as advice. Some data and o
ther information are also based on our good faith estimates, which are derived from our review of industry publications and s
urveys
and independent sources. We believe that these
sources and estimates are reliable but have not independently verified them. Statements as to our market position are based o
n market data currently available to us. Although we are not aware of any misstatem
ents regarding the economic, employment, industry and other market data presented herein, these estimates involve inherent ri
sks and uncertainties and are based on assumptions that are subject to change.
CROSSFIRST BANK
Mike Maddox
President, CEO
and Director
Joined CrossFirst in 2008 after serving as Kansas City regional president for Intrust Bank
Practicing lawyer for more than six years before joining Intrust Bank
Appointed to CEO June 1, 2020 after 12 years of service
B.S. Business, University
of Kansas; J.D. Law, University of Kansas; Graduate School of Banking at the University of Wisconsin
Madison
Ben Clouse
–
Chief Financial Officer
25 years of experience in financial services, asset and wealth management, banking, retail and transportati
on, including public company CFO experience
Joined CrossFirst in July 2021 after serving as CFO of Waddell & Reed Financial, Inc. (formerly NYSE: WDR) until its acquisit
ion in 2021
Significant experience leading financial operations as well as driving oper
ational change
B.S. Business, Kansas State University; Master of Accountancy, Kansas State University
Obtained CPA designation and FINRA Series 27 license
Randy Rapp
Chief Risk Officer and Chief Credit Officer
More than 33 years of commercial banking exp
erience in Texas in various credit, production, risk and executive roles.
Joined CrossFirst in March 2019 after a 19
-
year career at Texas Capital Bank (NASDAQ:TCBI) serving as Executive Vice President and Chief Credit Officer from May 2015 un
til March 2019
B.B.A. Accounting, The University of Texas at Austin and M.B.A. Finance, Texas Christian University
Obtained CPA designation
Heather Worley
Director of Investor Relations
More than 15 years of experience in marketing, communications and investor relatio
ns in banking and finance
Joined CrossFirst in September 2021. Previously, SVP & Director of IR for Texas Capital Bancshares, Inc. (NASDAQ: TCBI)
Recognized by Institutional Investor magazine All
America Executive Team 2017
| Top Investor Relations Profess
ional & All
America Executive Team 2019 | Top Investor Relations Program
B.A. Communications, Mississippi State University
Other Senior Executives
Steve Peterson
Chief Banking Officer
of CrossFirst Bank
21+ years of banking
experience
Joined CrossFirst in
2011
Amy Fauss
Chief Operating &
Chief Human Relations Officer
of CrossFirst Bank
28+ years of banking experience
Joined CrossFirst in 2009
Jana Merfen
Chief Technology Officer
of CrossFirst Bank
12+ years of technology experience
Joined
CrossFirst in 2021
Executing Strategic Initiatives CROSSFIRST BANK
Net Income
$5.8 $ 19.6 $30.7 $28.5 $62.5 $12.6 $72.0
$69.4 $83.0 2017 2018 2019 2020 2021
Net Income Pretax, Pre
Provision Profit (2)
Operating Revenue(1)
$78.5 $3.7 74.8 $116.5 $6.
1 $110.4 $150.2 $8.7 $141.5 $172.0 $11.7 $160.3 $182.4 $13.7 $168.7
2017 2018 2019 2020 2021
Diluted EPS
$0.12 $0.47 $0.58 $0.24 $1.33
2017 2018 2019 2020 20021
Classified Loans/(Total Capital + LLR)
13.3% 19.2%13.2% 40.9% 10.8%
2017 2018 2019 2020 2021
Defined as net interest income plus non interest income
(2)
Represents anon GAAP financial measure, see non GAAP reconciliation slides at the end of this presentation for more details
4
Full Year 2021
Highlights and Summary CORSSFIRST BANK
Financial
Performance
Strong net income during 2021 of $69.4 million, up from $12.6 million in 2020
Net interest margin fully tax equivalent (FTE) of 3.15% in 2021 compared to 3.13% in 2020
Continued improvement in efficiency ratio to 54.5% in 2021 from 58
.1% in 2020
Credit
quality
Nonperforming assets to assets ratio decreased 58% from Q4 2020 to 0.58%
Net charge
-
offs to average loans ratio decreased 67% from full year 2020 to 0.30%
Classified loans to total capital ratio decreased 73.5% from Q4 2020 to 10
.8%
Balance
Sheet
6.6% (annualized) growth in total loans, ex PPP,* during Q4 2021
62% demand deposits growth from December 31, 2020, which represented 25% of total deposits at December 31, 2021
$1.9 billion in unfunded loan commitments as of December 31,
2021
* Represents a Non
GAAP financial measure, see Non
GAAP reconciliation slides at the end of the presentation for more detail.
Strategic Initiative Achievements 2021 CROSSFIRST BANK
Shareholder
Focus
Purchased $8.4 million, or 1%, of outstandi
ng shares, during the fourth quarter as part of the $30 million share repurchase program announced in October 2021
Completed $20 million share repurchase program in Q2 2021 at a weighted average price of $12.68
Investing in
Technology
Signed a contract dur
ing the fourth quarter with Q2 Holdings
Brings a single unified platform to provide a seamless client experience for mobile, online, and voice banking
Offers the ability to further leverage innovative digital banking products, services, and features
Invest
ing in funds designed to support community banks
Announced investment in JAM FINTOP Banktech investment fund
In discussions with additional fintech investment funds that are designed to support community banks
Talent
Acquisition
Entered Phoenix market and
recruited experienced banking team
Added experienced banking executive David Felan to head the Texas growth strategy
Added 16 new producers in 2021, an increase of 18% from 2020
6
Our Road to Success
ONE TEAM
Focusing on:
Elevating our Strong
Corporate Culture by Living our CrossFirst Values
Attracting and Retaining High Performing Talent
Well
-
being of our Employees
ONE BANK
Focusing on:
Targeting Businesses and Professionals
Branch
Lite
Technology Focused
Delivering Extraordinary Service and
Customer Experience
SHARED VISION
Focusing on:
Performance & Profitability
Seizing Growth Opportunities
Strong Credit Quality
Enhancing Products and Services
Managing Enterprise Risk
Contributing to our Communities
LEAWOOD, KS KANSAS CITY, MO TULSA, OK OK
LAHOMA CITY, OK PHOENIX, ZA FRISCO,TX DALLAS,TX
Total
Assets
$5.6 billion
Gross
Loans
$4.3 billion
Total
Deposits
$4.7 billion
Book Value/
Share
$13.23
Note: As of 12/31/21.
CROSSFIRST BANKSAHERS, INC.TM
EXPANDING OUR FOOTPRINT
AREAS OF FOCUS
Continue to execute our organic growth strategy in existing markets
Focus on new expansion in target markets where we currently have client business
Evaluate expansion strategies in key target markets:
De Novo Expansion:
Hire experienced talent to expand i
n key growth markets
Strategic Acquisition:
Provides operational scale and synergies
Adds new lines of business
Adds fee income opportunities
POTENTIAL TARGET MARKETS
Austin, Texas
Fort Worth, Texas
Nashville, Tennessee
San Antonio, Texas
Denver, Colorado
Houston, Texas
Omaha, Nebraska
Fourth Quarter 2021 Summary & Highlights CROSSFIRST BANK
Net Income
$20.8M ROA 1.50% NIM(FTE) 3.28% Diluted EPS $0.40 ROE 12.57%
Balance Sheet Updaets 1.6% (1) (2) Non
GAAP Loan growth QoQ 5.6 % Deposit growth QoQ 21.
0 % DAA Deposit growth QoQ 3.4%(2) tbv/Shared grothw QoQ
Credit Performance 0.58% NPAs/Asset 0.07% NCOs/Avg Loans 1.37% Reserves/Loans 11% Classified Loans/Capital + ALLL
Capital & Liquidity 12.46% CET 1 Capital Ratio 13.61% Total Risk
-
Based Capital 91% Lo
ans/Deposits 22% Cash and Securities/Assets
Efficiency 55.38% Q4 2021 GAAP Efficiency Ratio 54.5%(2) Q4 2021 Non
GAAP Efficiency Ratio 1.93% Non
-
Interest Expense/Avg Assets
Note: Interim periods are annualized.
Gross loans net of unearned income; excludes
PPP loans.
* Represents a non
GAAP financial measure. See Non
GAAP Reconciliation slides at the end of this presentation for additional detail.
Net Interest Margin CROSSFIRST BANK
Yield on Loans & Cost of Deposits
4.89% 0.99% 5.34% 1.44% 5.52%
1.89% 4.26% 0.85% 4.02% 0.40%
2017 2018 2019 2020 2021
Yield on Loans Cost of Total Deposits
Net Interest Margin
Fully Tax Equivalent (FTE)
3.40% 3.39% 3.31% 3.13% 3.15%
2017 2018 2019 2020 2021
Fully tax
equivalent net interest margin increased 8bps to
3.28% in Q4 2021 from Q3 2021, primarily due to credit improvement and incremental loan fees
PPP Fees:
Realized $1.3 million in Q4 2021
$1.7 million of fees remain to be realized
Loan to deposit ratio decreased to 91% from 95% in Q3 2021
PPP Loan
Summary CROSSFIRST BANK
PPP Timeline
$292 ($67) $336 $111 $225 ($161) $197 $129 $68 ($88) $109 $96 $13 ($44) $65
Q4 2020 End Q1 2021 Forgiven Q1 2021 End Q2 2021 Forgiven Q2 2021 End Q3 2021 Forgiven Q3 2021 End Q4 2021 Forgiven Q4 2021 E
nd 2020 PPP Loans
Loan Forgiveness 2021 PPP Loans
Face Recognition
$4.2 $2.4 $5.9 $
3.7 $2.2 $2.1 $4.7 $4.2 $0.5 $1.7 $3.0 $1.3 $1.7
Q4 2020 Q1 2021 Q1 2021 Q2 2021 Q2 2021 Q3 2021 Q3 2021Q4 2021 Q4 2021 Round 1 Unrecognized Fees Fee Recognized Round Unrecog
nized Fees
Note:
As of end of period; dollars in millions.
11
Growth and expense management CROSSFIRST BANK
2020
-
2021
Non
-
Interest Expense
Details
$100.0
$19.7
$7.4
$8.7
S57.7
2020
$99.
$215
2021
Other
Goodwill Impairment
Technology
Occupancy
Salaries & Benefits
Assets and Non
-
Interest Expenses
2.53% $2,961 2.45% $4,107 $4,931 1.95% $5,659 1.84% $5,621 1.78%
2017 2018 2019 2020 2021
Total Assets Non
interest expense/Average Assets
Note: Dollars are in millions and amounts shown are as of the en
d of the period unless otherwise specified.
12
Improving Efficiency
while Growing Assets CROSSFIRST BANK
7.1% 73.6% 58.4% 58.1%54.5%
74.0% 67.8% 57.4% 53.0% 52.0%
$2,931 $4,107 $4,931 $5,659 $ 5,621
2017 2018 2019 2020 2021
Total Assets Efficiency R
atio Non
GAAP Efficiency Ratio
Note: Dollars are in millions and amounts sh
own are as of the end of the period unless otherwise specified.
* Represents a non
GAAP financial measure. See Non
GAAP Reconciliation slides at the end of this presentation for add
itional detail.
Stock Repurchase Activity CROSSFIRST BANK
51,680 51,679 50,959 51,003 50,450
610 88 876 0 566
Q42020 Q1 2021 Q2 2021 Q3 2021 Q4 2021
# of Shares Repurchased # Shares Outstanding
Repurchased 1% of outstanding shares in Q4 2021
and 3% of outstanding shares in full
-
year 2021
Return of accumulated capital and earnings to shareholders
Drives improvement in ROE and EPS
Little tangible book value dilution and a short earnback period
Note: shares in thousands
14
Asset Quality Per
formance CROSSFIRST BANK
Nonperform
npd
ing Assets / Assets
1.6%
1.4%
1.2%
1.0% 0.8% 0.6% 0.4%
0.2%
0.0%
0.18% 0.43% 0.97% 1.39% 0.58%
2017 2018 2019 2020 2021
NPAs continue to improve as economic and business outlooks improve
Redu
ction in NPAs mostl
y related to upgrades in commercial and industrial and energy loans
49% of the nonperforming asset balance in Q4 2021 relates to energy credits
Classified Loans / (Total Capital + ALLL)
$3$0 $300
$2$0
S200
S1$0
$100
$50
$286.1 $268.9 $170.7
$124.1 $78.7 40.9% 38.2% 24.0% 17.3% 10.8%
Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021
Classified Loans Ratio
Classified loans continue to trend down due primarily to higher energy prices, improvements in customers’ businesses, and imp
roved
economic conditions
27% of classifieds in Q4 2021 relate to Energy, down from 37% in Q3 2021 and 38% in Q4 2020
Energy classifieds decreased 54% during the quarter and 80% from Q4 2020
Note: Dollar amounts are in millions.
15
Asset Quality Performance
CROSSFIRST BANK
Net Charge
Offs / Average Loans(1)
1.0%
0 9%
0.8%
0.7%
0.6%
0.5%
0.4%
0.3%
0.2%
0.1%
0.0%
0.44% 0.07% 0.37% 0.89% 0.31%
2017 2018 2019 2020 2021
2021 had $12.9
million of net charge
offs related to loans in both energy
and commercial and industrial credits
Allowance for Loan Losses / Total Loans
SI 00
$80 ■ S60 ■ $40 ■ $20 ■ $0 ■
1.70% 1.65% 1.78% 1.51% 1.37%
$75.3 $74.6 $75.5 $64.2 $58.4
Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021
ALLL ALLL/Loans
Based on improved credit me
trics, reduced ALLL/Total Loans to 1.37% at end of Q4 2021 by releasing $5 million in reserves
Note: Dollar amounts are in millions.
Ratio is annualized for interim periods.
16
CROSSFIRST BANKSHARES, INC.TMSupplemental information
capital Rati
os CROSSFIRST BANK
Capital Ratios
8.62% 9.70% 10.65% 11.75% 12.53% 13.51% 12.20% 12.22% 13.43% 11.93% 11.94% 13.20% 12.46%12.48% 13.61%
2017 2018 2019 2020 2021
Common Equity Tier 1 Tier 1 Risk Based Total Risk
Based Capital
Maintaining strong capital leve
ls to support future growth
Continue to remain well capitalized as we return capital to shareholders
Execution of our profitable growth strategy further strengthening capital ratios
18
Diverse loan portfolio CROSSFIRST BANK Loan Mix by Type ($4.3bn) Commercial Industrial33%Residential RealEstate 10%Owner Occupied Real Estate 8% SBA PPP1% Energy7%CommercialReal Estate40% Other 1%Note: Data as of December 31, 2021. 19
Diverse loan portfolio CROSSFIRST BANK
CRE Loan Portfolio by Segment
$1.7bn)
Retail
14%
Multi
-
Family
16%
Other
23%
Office
15%
Industrial
14%
4 Family Res
Construction
7%
Hotel 11%
Commercial and Industrial Loan Breakdown
by Type ($1.4bn)
Financial Management 5%
Aircraft & Transportation 7%
Merchant Wholesalers 5%
18
Other Industries 42%
Manufacturing 12%
Business Loans to Individuals 8%
Health Care 6%
Engineering & Contracting 9% Restaurants 6%
Note: Data as of December 31, 2021.
Balance Sheet Growth CROSSFIRST BANK
$ 1,996 $2,303 $3,061 $3,852 $3,924 $4,442
$4,695 $4,256 $4,684
2017 2018 2019 2020 2021
Gross loans net of uneamed fees Total deposit
Balance Sheet
FY 2021
YoY
2017
2021
CAGR
Cross Loans
▼
4%
16%
Gross Loans ex PPP
A
1%
Total Deposits
A
0%
15%
Total Assets
▼
1%
14%
Annualized loan
growth of 6.6% during Q4 2021, excluding the impact of PPP*
$227 million in PPP loans were forgiven in 2021
$44 million in PPP loans were forgiven in Q4 2021
Note: Dollars are in millions.
* Represents a non
GAAP financial measure. See Non
-
GAAP Reconciliat
ion slides at the end of this presentation for additional detail.
21
improving core funding base CROSSFIRST BANK
Total Deposits
$2,303
$3,208
$3,924
$4,695
$4,684
$2,012
$2,724
$3,402
$3,976
$3,520
$291
$484
$522
$718
$1,163
2017
2018
2019
2020
2021
Cost of Deposits 0.99%
1.44%
1.89%
0.85%
0.40%
DDA Other Deposits
Improved the cost of deposits by increasing percentage of DDA accounts
Demand deposits 5
year CAGR of 32%
+62% compared to 2020 year
-
end
+21% compared to Q3 2021
Number of DDA
accounts increased by 868 in 2021
Deposit costs have trended down due to the persistent low
rate environment and management’s focus on increasing demand deposits
Focus on Core Funding*
21%
21%
19%
14%
6%
6%
9%
10%
6%
2017
2018
2019
2020
2021
Wholesale D
eposits Brokered Deposits
Note: Dollars are in millions and amounts shown are as of the end of the period.
* As a percentage of Bank assets
22
Loan Portfolio CROSSFIRST BANKGross Loans by Type $2,002 $3,069 $3,862 $4,455 $4,270 $191$284 $360$447 $470$797 $1,293 $1,736 $2,032 $2,055 $243$358 $409$345 $279$771 $1,134 $1,357 $1,631 $1,466 20172018 20192020 2021Loan Yield4.89%5.34%5.52% 4.26%4.02% Commercial Energy Commercial Real Estate ConsumerThe loan portfolio, excluding PPP loans,at Q4 2021 grew 1.6% from previous quarterLoan yields increased primarily due to credit improvement and incremental loan feesContinued pressure on real estate due to cap rates and long-term finance rates for our customers Line utilization continues to be less than historical average Note: Dollars are in millions and amounts shown are as of the end of the period.23
Securities portfolio CROSSFIRST BANK
Investment Portfolio Breakout as of December 31, 2021
Municipal
Taxable
1.0%
MBS
(Fixed)1
21.7%
Other,
0.6%
Total: ~$746
million*
CMO (Fixed)
2.5%
At the end of Q4 2021, the portfolio’s duration was approximately 5.2 years
The fully taxable equivalent yield for Q4 2021 increased 2bps to 2.89%
The securities portfolio has unrealized gai
ns of approximately $29 million as of December 31, 2021
During Q4 2021, $14 million of MBS/CMO paydowns were received and $40 million of MBS securities and $16 million of Tax
Exempt Municipal bonds were purchased with an average tax
equivalent yield of 1.9
3%
Securities Yield
Fully Tax Equivalent
3.85%
3.62%
3.35%
3.05%
2.90%
2.79%
2.13%
1.45%
2.13%
2.40%
2017
2017
2017
2017
2017
Securities Yield
Cost of Funds Spread Securities Yield
* Based on approximate fair value.
24
CrossFirst Energy Portfolio
CROSSFIRST BANK
Portfolio Composition
Collateral base is predominately comprised of properties with sufficient production history to establish reliable production
trends
Typically, only lend as a senior secured lender in single bank
transactions and as a cash flow lender
Exploration & Production lending only on proven and producing reserves
CrossFirst typically does not lend to shale, oil field services, or midstream energy companies.
Energy portfolio represents 7% of the entire loan
portfolio
Energy by Composition 12/31/2021
# Loans
Loan Amount
% Total
Avg % Hedged(1)
Hedge Price(2)
Oil
34
$159
57%
44%
$52.01
Natural Gas
11
$113
41%
50%
$2.98
Other Sources
$7
2%
Total
49
$279
100%
40% (1)
Energy Portfolio and
Tangible Equity(3)
98%
79%
69%
55%
42%
$243
$249
$358
$453
$409
$594
$345
$624
$279
$667
2017
2018
2019
2020
2021
Energy Portfolio Tangible Equity (3) Energy as % of Tanbile Equity (3)
Energy Loans by Risk Rating
3.3% of Reserves on Energy Portfolio
$243
$358
$409
$345
$279
$26
$13
$7
$109
$21
$12
$9
$90
$73
$205
$340
$393
$146
$184
2017
2018
2019
2020
2021
Pass Special Mention Substandard
Note: Data as of 12/31/21.
Note: Loan dollars in millions;
Weighted Average.
Hedged rolling 12 month; Oil price in $ per barrel an
d natural gas price in $ per MMBtu.
Represents a non
GAAP financial measure, see non
GAAP reconciliation slides in the supplemental information for more detail.
25
Quarterly selected financials CROSSFIRST BANK
(Dollars in thousands, except per
share data)
CrossFirst Bankshares, Inc. Quarterly Financials
For the Three Months Ended
12/31/21
9/30/21
6/30/21
3/31/21
12/31/20
Income Statement Data:
Interest income
49,202
47,311
48,484
48,153
49,534
Interest expense
5,757
5,510
6,156
7,036
,997
Net interest income
43,445
41,801
42,328
41,117
41,537
Provision for loan losses
(5,000)
(10,000)
3,500
7,500
10,875
Non
interest income
4,796
(1,105)
5,825
4,144
2,949
Non
interest expense
26,715
24,036
25,813
22,818
23,732
Net income before
taxes
26,526
26,660
18,840
14,943
9,879
Income tax expense
5,725
5,660
3,263
2,908
1,785
Net income
20,801
21,000
15,577
12,035
8,094
Non
-
GAAP core operating income(1)
20,801
25,898
14,245
12,035
8,094
Balance Sheet Data:
Cash and cash equivalent
482,727
316,722
220,814
630,787
408,810
Securities
745,969
708,106
712,217
685,454
654,588
Gross loans (net of unearned income)
4,256,213
4,233,117
4,237,944
4,508,600
4,441,897
Allowance for loan losses
58,375
64,152
75,493
74,551
75,295
Goodwill and intangibles
130
149
169
188
208
Total assets
5,621,457
5,401,151
5,311,434
5,998,074
5,659,303
Non
interest bearing deposits
1,163,224
960,999
818,887
794,559
718,459
Total deposits
4,683,597
4,436,597
4,356,627
5,051,570
4,694,740
Borrowings and repurchase agreements
236,600
276,600
283,100
286,394
295,406
Trust preferred securities, net of fair value adjustments
1,009
997
986
974
963
Stockholders' Equity
667,573
652,407
637,190
628,834
624,428
Tangible common stockholders' equity(1
667,443
652,257
637,021
628,646
624,220
Share and Per Share Data:
Basic earnings per common share
0.41
0.41
0.30
0.23
0.16
Diluted earning per common share
0.40
0.41
0.30
0.23
0.15
Book value per share
13.23
12.79
12.50
12.17
12.08
Tangible book value per share(1)
13.23
12.79
12.50
12.16
12.08
Basic weighted average common shares outstanding
50,893,493
50,990,113
51,466,885
51,657,204
51,970,116
Diluted weigh
ted average common shares outstanding
51,660,723
51,605,721
52,209,541
52,381,474
52,463,645
Shares outstanding at end of period
50,450,045
51,002,698
50,958,680
51,678,669
51,679,516
(1) Represents a non
GAAP financial measure. See Non
GAAP Reconciliation slides at the end of this presentation for additional detai
Quarterly selected financials CROSSFIRST BANK CrossFirst Bankshares, Inc. Quarterly Financials For the Three Months Ended 12/
31/21 9/30/21 6/30/21 3/31/21 12/31/20 Selected Ratios: Return on average assets(1) 1.50 % 1.54 % 1.10 % 0.84 %
0.58 % Non
GAAP core operating return on average assets(1)(2) 1.50 1.90 1.01 0.84 0.58 Return on average common equity 12.57 12.92 9.86
7.80 5.19 Yield on earning assets 3.65 3.56 3.51 3.45 3.67 Yield on earning assets
tax equivalent(3) 3.70 3.62 3.57 3.
50 3.71 Yield on securities 2.49 2.46 2.52 2.48 2.56 Yield on securities
tax equivalent(3) 2.89 2.87 2.93 2.89 2.96 Yield on loans 4.17 4.00 3.99 3.94 4.00 Cost of funds 0.48 0.46 0.49 0.56 0.65 Cos
t of interest
bearing liabilities 0.61 0.57 0.59 0.65 0.
77 Cost of interest
bearing deposits 0.43 0.47 0.50 0.57 0.69 Cost of deposits 0.33 0.38 0.41 0.48 0.58 Cost of other borrowings 3.03 1.82 1.79 1
.79 1.78 Net interest margin
tax equivalent(3) 3.28 3.20 3.12 3.00 3.12 Non
interest expense to average asset
s 1.93 1.76 1.82 1.60 1.71 Efficiency ratio(4) 55.38 59.06 53.61 50.41 53.35 Non
GAAP core operating efficiency ratio (FTE)(2)(4) 54.52 50.45 53.34 49.64 52.54 Non
interest bearing deposits to total deposits 24.84 21.66 18.80 15.73 15.30 Loans to deposits
90.87 % 95.41 % 97.28 % 89.25 % 94.61 % Credit Quality Ratios: Allowance for loans losses to total loans 1.37 % 1.51 % 1.78 %
1.65 % 1.70 % Nonperforming assets to total assets 0.58 0.92 1.09 1.15 1.39 Nonperforming loans to total loans 0.74 1.15 1.33
1.48
1.71 Allowance for loans losses to nonperforming loans 185.19 131.76 133.79 112.10 98.98 Net charge
offs (recoveries) to average loans(1) 0.07 % 0.13 % 0.23 % 0.74 % 1.03 % Capital Ratios: Total stockholders' equity to total
assets 11.88 % 12.08 % 12.00 %
10.48 % 11.03 % Common equity tier 1 capital ratio 12.46
12.61 12.40 12.00 11.93 Tier 1 risk
based capital ratio 12.48 12.63 12.42 12.02 11.94 Total risk
based capital ratio 13.61 13.88 13.67 13.27 13.20 Tier 1 leverage ratio 11.84 % 11.77 % 10.81 % 10.51
% 10.93 % (1) Interim periods are annualized. (2) Represe
nts a non
GAAP financial measure. See Non
-
GAAP Reconciliation slides at the end of this presentation for additional detail. (3) Tax
exempt income is calculated on a tax
equivalent basis. Tax
exempt
income includes municipal securities, which is exempt from federal taxation. A tax rate of 21% is used. (4) Efficiency ratio
is non
interest expense divided by the sum of net interest income and non
interest income; non
GAAP core operating efficiency ratio
(FTE) is adjusted for non
core or non
recurring items 27
Non
-
gaap reconciliations CROSSFRIST BANK For the Three Months Ended (Dollars in thousands) 12/31/21 9/30/21 6/30/21 3/31/21 12/31
/20 Non
GAAP Core Operating Income: Net income $ 20,801 $ 21,00
0 $ 15,577 $ 12,035 $ 8,094 Add: Unrealized loss on equity security
6,200
Less: Tax effect(2)
-
1,302
-
Unrealized loss on equity security, net of tax
4,898
Add: Accelerated employee benefits
719
Less: Tax effect (3)
210
Accelerated employee benefits, net of tax
509
Less: BOLI settlement benefits(1)
1,841
Non
GAAP core operating income $ 20,801 $ 25,898 $ 14,245 $ 12,035 $ 8,094 Non
GAAP Core Operating Return on Average Assets: Net income $ 20,801 $ 21,000
$ 15,577 $ 12,035 $ 8,094 Non
GAAP core operating income 20,801 25,898 14,245 12,035 8,094 Average assets $ 5,490,482 $ 5,408,984 $ 5,673,638 $ 5,798,167 $
5,523,196 GAAP return on average assets 1.50 % 1.54 % 1.10 % 0.84 % 0.58 % Non
GAAP core operating
return on average assets 1.50 % 1.90 % 1.01 % 0.84 % 0.58 % Non
GAAP Core Operating Return on Average Equity: Net income available to common stockholders $ 20,801 $ 21,000 $ 15,577 $ 12,035
$ 8,094 Non
GAAP core operating income available to common stockho
lders 20,801 25,898 14,245 12,035 8,094 Average common equity 656,415 644,715 633,417 625,875 620,496 Less: average goodwill
and intangibles 140 160 179 199 218 Average Tangible Equity $ 656,275 $ 644,555 $ 633,238 $ 625,676 $ 620,278 GAAP return on
averag
e common equity 12.57 % 12.92 % 9.86 % 7.80 % 5.19 % Non
GAAP core return on average tangible common equity 12.57 % 15.94 % 9.02 % 7.80 % 5.19 % Non
GAAP Core Operating Efficiency Ratio: Non
interest expense $ 26,715 $ 24,036 $ 25,813 $ 22,818 $ 23,732 Les
s: Accelerated employee benefits
719
Non
GAAP non
interest expense (numerator) $ 26,715 $ 24,036 $ 25,094 $ 22,818 $ 23,732 Net interest income 43,445 41,801 42,328 41,117 41,
537 Tax equivalent interest income(4) 762 748 734 704 683 Non
interest in
come 4,796 (1,105) 5,825 4,144 2,949
Add: Unrealized loss on equity security
6,200
Less: BOLI settlement benefits
1,841
-
Non
GAAP operating revenue (denominator) $ 49,003 $ 47,644 $ 47,046 $ 45,965 $ 45,169 GAAP Efficiency Ratio 55.38 % 59.0
6 % 53.61 % 50.41 % 53.35 % Non
GAAP core operating efficiency ratio (FTE) 54.52 % 50.45 % 53.34 % 49.64 % 52.54 % No tax effect. Represents the tax impact o
f the adjustments at a tax rate of 21.0%. Represents the tax impact of the adjustments above at a t
ax rate of 21.0%, plus a permanent ta
x benefit associated with stock
based grants. Tax exempt income (tax
free municipal securities) is calculated on a tax equivalent basis. The incremental tax rate used is 21.0%. 28
Non
-
gaap reconciliations (Cont.)
CROSSFIRST BANK For the Three Months Ended (Dollars in thousands, except per share data) 12/31/21 9/30/21 6/30/21 3/31/21 12/
31/20 Tangible common stockholders' equity: Stockholders' equity $ 667,573 $ 652,407 $ 637,190 $ 628,834 $ 624,428 Less: good
will a
nd other intangible assets 130 149 169 188 208 Tangible Stockholders' Equity $ 667,443 $ 652,258 $ 637,021 $ 628,646 $ 624,22
0 Shares outstanding at end of period 50,450,045 51,002,698 50,958,680 51,678,669 51,679,516 Book value per share $ 13.23 $ 1
2.79 $
12.50 $ 12.17 $ 12.08 Tangible book value per share $ 13.23 $ 12.79 $ 12.50 $ 12.16 $ 12.08 12/31/2021 Gross loans, net ot un
earned income $ 4,256,213 Less: PPP loans, net ot unearned income 64,805 f'Jon
-
PPP gross loans, net ot unearned income $ 4,131,408
Year
over
-
year loan growth (4.18} X f'Jon
-
GAAP year
-
over
year loan grow th excluding PPP loans 1.00 Linked quarter loan grow th 0.55 f'Jon
-
G A AP linked quarter loan grow th excluding PPP loans 1.64 X Allowance tor loan losses $ 58,375 Allowance tor loan
losses to gross loans, net ot unearned income 1.37 X Allowance tor loan losses to non
PPP gross loans, net ot unearned income 1.39 X For (he Three Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 $ 4,233,11
7 $ 4,237,944 $ 4,508,600 $ 4,441,897 109,465
197,084 336,355 292,230 $ 4,123,652 $ 4,040,860 $ 4,172,245 $ 4,149,667 X X $ 64,152 $ 75,493 $ 74,551 $ 75,295 1.51 X 1.78 X
1.65 X 1.70 1.56 X 1.87 X 1.79 X 1.81 29
Historical Financial Information CROSSFIRST BANK (Dollars in thousands, except per
share data) For the Year Ended December 31, 2021 2020 2019 2018 2017 Income Statement Data: Interest income $ 193,150 $ 203,4
48 $ 216,218 $ 156,880 $ 97,816 Interest expense 24,459 43,199 74,774 46,512 22,998 Net interest income 168,691 160,249 141,4
44 11
0,368 74,818 Provision for loan losses (4,000) 56,700 29,900 13,500 12,000 Non
interest income 13,660 11,733 8,707 6,083 3,679 Non
interest expense 99,382 99,968 87,640 85,755 62,089 Net income before taxes 86,969 15,314 32,611 17,196 4,408 Income tax expe
nse (benefit) 17,556 2,713 4,138 (2,394) (1,441) Net income 69,413 12,601 28,473 19,590 5,849 Non
GAAP core operating income(1) $ 72,979 $ 19,998 $ 27,427 $ 19,940 $ 9,716 Balance Sheet Data: Cash and cash equivalents $ 482
,727 $ 408,810 $ 187,320 $ 216,54
1 $ 130,820 Securities 745,969 654,588 739,473 661,628 701,534 Gross loans (net of unearned income) 4,256,213 4,441,897 3,852
,244 3,060,747 1,996,029 Allowance for loan losses 58,375 75,295 56,896 37,826 26,091 Goodwill and intangibles 130 208 7,694
7,796
7,897 Total assets 5,621,457 5,659,306 4,931,233 4,107,215 2,961,118 Non
interest bearing deposits 1,163,224 718,459 521,826 484,284 290,906 Total deposits 4,683,597 4,694,740 3,923,759 3,208,097 2,
303,364 Borrowings and repurchase agreements 236,600 295,4
06 373,664 388,391 357,837 Preferred Stock, liquidation value
30,000 30,000 Stockholders' Equity 667,573 624,428 601,644 490,336 287,147 Tangible common stockholders' equity(1) $ 667,443
$ 624,220 $ 593,950 $ 452,540 $ 249,250 Share and Per Share Dat
a: Basic earnings per common share $ 1.35 $ 0.24 $ 0.59 $ 0.48 $ 0.12 Diluted earnings per common share 1.33 0.24 0.58 0.47 0
.12 Book value per share 13.23
12.08 11.58 10.21 8.38 Tangible book value per share(1) $ 13.23 $ 12.08 $ 11.43 $ 10.04 $ 8.12 Basic
weighted average common shares outstanding 51,291,428 52,070,624 47,679,184 36,422,612 30,086,530 Diluted weighted average co
mmon shares outstanding 52,030
,582 52,548,547 48,576,135 37,492,567 30,963,424 Shares outstanding at end of period 50,450,045 51,6
79,516 51,969,203 45,074,322 30,686,256 (1) Represents a non
-
GAAP financial measure. See Non
GAAP Reconciliation slides at the end of this presentation for additional detail. 30
Historical Financial Information CROSSFIRST BANK For the Year Ended Dece
mber 31, 2021 2020 2019 2018 2017 Selected Ratios: Return on average assets(1) 1.24 % 0.24 % 0.63 % 0.56 % 0.24 % Non
-
GAAP core operating return on average assets(1)(2) 1.31 0.37 0.61 0.57 0.40 Return on average common equity 10.84 2.05 5.38 5
.34 1.53 Yiel
d on earning assets
tax equivalent(3) 3.60 3.96 5.04 4.77 4.37 Yield on securities
tax equivalent(3) 2.90 3.05 3.35 3.62 3.85 Yield on loans 4.02 4.26 5.52 5.34 4.89 Cost of funds 0.50 0.92 1.90 1.49 1.06 Cos
t of interest
bearing deposits 0.49 1.02 2.2
1 1.71 1.12 Cost of deposits 0.40 0.85 1.89 1.44 0.99 Net interest margin
tax equivalent(3) 3.15 3.13 3.31 3.39 3.40 Non
-
interest expense to average assets 1.78 1.84 1.95 2.45 2.53 Efficiency ratio(4) 54.50 58.13 58.37 73.64 79.10 Non
GAAP core operating
efficiency ratio (FTE)(2)(4) 52.02 52.98 57.25 67.68 72.33 Non
interest bearing deposits to total deposits 24.84 15.30 13.30 15.10 12.63 Loans to deposits 90.87 % 94.61 % 98.18 % 95.41 % 8
6.66 % Credit Quality Ratios: Allowance for loans losses to total l
oans 1.37 % 1.70 % 1.48 % 1.23 % 1.30 % Nonperforming assets to total assets 0.58 1.39 0.97 0.43 0.18 Nonperforming loans to
total loans 0.74 1.71 1.15 0.58 0.27 Allowance for loans losses to nonperforming loans 185.19 98.98 128.54 212.30 481.68 Net
charge
offs (recoveries) to average loans(1) 0.30 % 0.89 % 0.31 % 0.07 % 0.44 % Capital Ratios: Total stockholders' equity to total
assets 11.88 % 11.03 % 12.20 % 11.94 % 9.70 % Common equity tier 1 capital ratio 12.46 11.93 12.20 11.75 8.62 Tier 1 risk
-
based ca
pital ratio 12.48 11.94 12.22 12.53 9.70 Total risk
based capital ratio 13.61 13.20 13.43 13.51 10.65 Tier 1 leverage ratio 11.84 % 10.93 % 12.06 % 12.43 % 9.71 % (1) Interim pe
riods are annualized. (2) Represents a non
GAAP financial measure. See Non
-
GAAP
Reconciliation slides at the end of this presentation for additional detail. (3) Tax
exempt income is calculated on a tax
equivalent basis. Tax
exempt income includes municipal securities, which is exempt from federal t
axation. A tax rate of 21% is used.
(4) Efficiency ratio is non
interest expense divided by the sum of net interest income and non
interest income; non
GAAP core operating efficiency ratio (FTE) is adjusted for non
core or non
-
recurring items 31
Non
gaap reconciliations CROSSFIRST BANK
As of or for the Year Ended December 31, 2021 2020 2019 2018 2017 Non
GAAP core operating income: Net income $ 69,413 $ 12,601 $ 28,473 $ 19,590 $ 5,849 Add: Unrealized loss on equity security 6,
200
-
Less: Tax effect(1) 1,302
-
Unrealized los
s on equity security, net of tax 4,898
Add: restructuring charges
4,733
Less: Tax effect(1)
1,381
Restructuring charges, net of tax
3,352
Add: fixed asset impairments
424 171 1,903 Less: Tax effect(2)
109 44 737 Fixe
d asset impairments, net of tax
315 127 1,166 Add: Goodwill impairment(3)
7,397
Add: State tax credit(3)
-
(1,361) (3,129)
Add: 2017 Tax Cut and Jobs Act(3)
-
2,701 Add: Accelerated employee benefits 719
Less: Tax effect (2) 2
10
-
Accelerated employee benefits, net of tax 509
-
Less: BOLI settlement benefits(3) 1,841
-
Non
GAAP core operating income $ 72,979 $ 19,998 $ 27,427 $ 19,940 $ 9,716 Non
GAAP Core Operating Return on Average Assets: Net income $ 69,41
3 $ 12,601 $ 28,473 $ 19,590 $ 5,849 Non
GAAP core operating income 72,979 19,998 27,427 19,940 9,716 Average assets $ 5,591,471 $ 5,358,479 $ 4,499,764 $ 3,494,655 $
2,452,797 GAAP Return on average assets 1.24 % 0.24 % 0.63 % 0.56 % 0.24 % Non
GAAP core
operating return on average assets 1.31 % 0.37 % 0.61 % 0.57 % 0.40 % Non
GAAP Core Operating Return on Average Equity: Net income $ 69,413 $ 12,601 $ 28,473 $ 19,590 $ 5,849 Non
GAAP core operating income 72,979 19,998 27,427 19,940 9,716 Less: Preferred
stock dividends
-
175 2,100 2,100 Net income available to common stockholders 69,413 12,601 28,298 17,490 3,749 Non
GAAP core operating income available to common stockholders 72,979 19,998 27,252 17,840 7,616 Average
common equity 640,202 614,726 526,22
5 327,446 245,193 Intangible Assets 170 3,898 7,746 7,847 7,949 Average Tangible Equity $ 640,032 $ 610,828 $ 518,479 $ 319,5
99 $ 237,244 GAAP return on average common equity 10.84 % 2.05 % 5.38 % 5.34 % 1.53 % Non
GAAP
core return on average tangible comm
on equity 11.40 % 3.27 % 5.26 % 5.58 % 3.21 % Non
GAAP Core Operating Efficiency Ratio: Non
interest expense $ 99,382 $ 99,968 $ 87,640 $ 85,755 $ 62,089 Less: Accelerated employee benefits 719
Less: goodwill impairment
7,397
Less: restruct
uring charges
-
4,733
Non
GAAP non
-
interest expense (numerator) $ 98,663 $ 92,571 $ 87,640 $ 81,022 $ 62,089 Net interest income 168,691 160,249 141,444 110,368
74,818 Tax equivalent interest income 2,948 2,732 2,5
22 3,099 5,439 Non
interest income 1
3,660 11,733 8,707 6,083 3,679 Add: Unrealized loss on equity security 6,200
-
Add: fixed asset impairments
424 171 1,903 Less: BOLI settlement benefits(1) 1,841
Non
GAAP Operating revenue (denominator) $ 189,658 $ 174,714 $ 153,097 $ 119
,721 $ 85,839 GAAP Efficiency Ratio 54.50 % 58.13 % 58.37 % 73.64 % 79.10 % Non
-
GAAP Core Operating Efficiency Ratio (FTE) 52.02 % 52.98 % 57.25 % 67.68 % 72.33 % Represents the tax impact of the adjustmen
ts above at a tax rate of 25.73% from 2015 through
2020 and at 21% for 2021, plus a permanent tax benefit associated with stock
based grants. Represents the tax impact of the adjustments above at a tax rate of 25.73% for fiscal years 2018 and after; 38.
73% for fiscal years prior to 2018. No tax effect asso
ciated with the 2017 Tax Act adjustment or state tax credit or the goodwill impairment. 32
Non
gaap reconciliations CROSSFIRST BANK
(Dollars in thousands, except per share data) For the Year Ended
December 31,
2021
2020
2019
2018
2017
Pre
Tax Pre
Pro
vision Profit
Net income before taxes $ 86,969
$ 15,314
$ 32,611
$ 17,196
$ 4,408
Add: Provision for loan losses
(4,000)
56,700
29,900
13,500
12,000
Pre
Tax Pre
Provision Profit
82,969
72,014
62,511
30,696
16,408
Average Assets
5,591,471
5,358,479
4,499,764
3,494,655
2,452,797
Pre
Tax Pre
Provision Return on Average Assets
1.48 %
1.34 %
1.39 %
0.88 %
0.67 %
Tangible common stockholders' equity:
Stockholders' equity $ 667,573
$ 624,428
$ 601,644
$ 490,336
$ 287,147
Less: goodwill and other intangible
assets
130
208
7,694
7,796
7,897
Less: preferred stock
-
30,000
30,000
Tangible Stockholders' Equity $ 667,443
$ 624,220
$ 593,950
$ 452,540
$ 249,250
Shares outstanding at end of period
50,450,045
51,679,516
51,969,203
45,074,322
30,686,256
Book valu
e per share $ 13.23
$ 12.08
$ 11.58
$ 10.21
$ 8.38
Tangible book value per share $ 13.23
$ 12.08
$ 11.43
$ 10.04
$ 8.12
33